Defense production act of 1951

§§ 2041 to 2045

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

Section 2031, act Feb. 26, 1949, ch. 11, § 11, 63 Stat. 9,
set out effective date of sections 2021 to 2032 of this Appendix.
Section 2032, acts Feb. 26, 1949, ch. 11, § 12, 63 Stat. 9;
May 16, 1951, ch. 83, 65 Stat. 43; June 16, 1953, ch. 116, 67
Stat. 62; June 29, 1956, ch. 473, § 1, 70 Stat. 407; June 25,
1958, Pub. L. 85–466, 72 Stat. 220; May 13, 1960, Pub. L.
86–464, 74 Stat. 130; July 1, 1962, Pub. L. 87–515, § 1, 76
Stat. 127; June 30, 1965, Pub. L. 89–63, § 1, 79 Stat. 209;
June 30, 1969, Pub. L. 91–35, 83 Stat. 42; Aug. 18, 1969,
Pub. L. 91–59, 83 Stat. 101; Oct. 31, 1969, Pub. L. 91–105,
§ 1, 83 Stat. 169, provided for termination date of sections 2021 to 2032 of this Appendix, on Dec. 31, 1969.

Sec.

2092.

ALIEN PROPERTY DAMAGE CLAIMS
ACT MAR. 15, 1949, CH. 19, 63 STAT. 12
2093.

§§ 2041 to 2045. Omitted
CODIFICATION
Sections 2041 to 2045 were omitted pursuant to section 2042 of this Appendix.
Section 2041, act Mar. 15, 1949, ch. 19, § 1, 63 Stat. 12,
related to adjustment and settlement of claims.
Section 2042, act Mar. 15, 1949, ch. 19, § 2, 63 Stat. 13,
related to time limitation for presentment of claims
under sections 2041 to 2045 of this Appendix and required presentment within one year of Mar. 15, 1949.
Section 2043, act Mar. 15, 1949, ch. 19, § 3, 63 Stat. 13,
related to finality and conclusiveness of Attorney General’s decisions.
Section 2044, act Mar. 15, 1949, ch. 19, § 4, 63 Stat. 13,
related to claims in excess of one thousand dollars.
Section 2045, act Mar. 15, 1949, ch. 19, § 5, 63 Stat. 13,
related to authorization of appropriations for use under
sections 2041 to 2045 of this Appendix.

2094.

DEFENSE PRODUCTION ACT OF 1950
ACT SEPT. 8, 1950, CH. 932, 64 STAT. 798

2095.

Sec.

2061.
2062.

Short title.
Declaration of policy.
(a) Findings.
(b) Statement of policy.
TITLE I—PRIORITIES AND ALLOCATIONS

2071.

2072.
2073.
2074.

2075.
2076.
2077.

2078.

Priority in contracts and orders.
(a) Allocation of materials, services, and
facilities.
(b) Critical and strategic materials.
(c) Domestic energy; materials, equipment, and services.
Hoarding of designated scarce materials.
Penalties.
Limitation on actions without Congressional
authorization.
(a) Wage or price controls.
(b) Chemical or biological weapons.
Presidential power to ration gasoline among
classes of end-users unaffected.
Designation of energy as a strategic and critical material.
Strengthening domestic capability.
(a) In general.
(b) Critical components and critical technology items.
Modernization of small business suppliers.
(a) In general.
(b) Modernization of equipment.

TITLE II—AUTHORITY TO REQUISITION AND
CONDEMN
2081.

Omitted.
TITLE III—EXPANSION OF PRODUCTIVE
CAPACITY AND SUPPLY

2091.

Loan guarantees.

Page 220

2096.

(a) Purpose of loans; guaranteeing agencies; Presidential determinations.
(b) Fiscal agents; accountability; reimbursement.
(c) Supervision; interest, fees, procedures.
(d) Funds available for guarantees.
(e) Identification of industrial resource
shortfall; prevention of personal financial insolvency or bankruptcy.
Loans to private business enterprises.
(a) Purposes.
(b) Terms and conditions; Presidential
determinations.
(c) Identification of industrial resource
shortfall.
Purchase of raw materials and installation of
equipment.
(a) Presidential provisions.
(b) Terms and conditions of purchase.
(c) Subsidy payments on domestically
produced materials; exclusion of agricultural products.
(d) Transportation, storage, and processing.
(e) Installation of equipment in industrial facilities.
(f) Transfer of excess materials to national stockpile.
(g) Development of substitutes for strategic and critical materials.
Defense Production Act Fund.
(a) Establishment of Fund.
(b) Moneys in Fund.
(c) Use of Fund.
(d) Duration of Fund.
(e) Fund balance.
(f) Fund manager.
(g) Liabilities against Fund.
Synthetic fuel production.
(a) Immediate Presidential action to
meet national defense needs; exercise of authorities; United States
Synthetic Fuel Corporation authority unaffected.
(b) Specific Presidential authorities; requisites, limitations, etc.
(c) Purchases and commitments to purchase by President; authority; limitations; advance payments prior to
construction of synthetic fuel project.
(d) Bidding and contracting procedures
and requirements applicable to purchases and commitments to purchase.
(e) Scope of Presidential procurement
power.
(f) Determinations necessary for purchase and sale of synthetic fuel.
(g) Maximum liability of Federal Government under contracts; budgetary
certifications.
(h) Loan, guarantee, or purchase agreement not to be deemed a major Federal action significantly affecting
the quality of the human environment.
(i) Labor standards; applicability, certifications, etc.
(j) Other jurisdictional, etc., authorities
relating to water resources and
rights unaffected.
(k) Termination of contracting or commitment authority of President; renewal or extension of contracts.
Synthetic fuel production subsequent to determinations respecting a national energy
supply shortage of defense fuels.

Page 221

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

§§ 2041 to 2045

Sec.

Sec.

(a) Invocation of authorities; judicial review prohibited.
(b) Immediate Presidential action to
meet national defense needs; exercise of authorities; United States
Synthetic Fuels Corporation authority unaffected.
(c) Specific Presidential authorities; requisites, limitations, etc.
(d) Purchases and commitments to purchase by President; authority; limitations; advance payments prior to
construction of synthetic fuel project.
(e) Bidding and contracting procedures
and requirements applicable to purchases and commitments to purchase.
(f) Scope of Presidential procurement
power.
(g) Determinations respecting purchase
and sale of synthetic fuel.
(h) Maximum liability of Federal Government under contracts; budgetary
certifications.
(i) Loan, guarantee, or purchase not to
be deemed a major Federal action
significantly affecting the quality
of the human environment.
(j) Labor standards; applicability, certifications, etc.
(k) Other jurisdictional, etc., authorities
relating to water resources and
rights unaffected.
(l) Renewals and extensions of contracts.
2096a.
Annual reports on synthetic fuel production.
2097.
Synthetic fuel action.
(a) ‘‘Synthetic fuel action’’ defined.
(b) Submission to Congress by President.
2098.
Definitions.
2099.
Annual report on impact of offsets.
(a) Annual report on impact of offsets.
(b) Interagency studies and related data.
(c) Notice of offset agreements.
(d) Contents of report.
(e) Utilization of annual report in negotiations.
2099a.
Civil-military integration.
TITLE IV—PRICE AND WAGE STABILIZATION

(a) Immunity from civil and criminal liability or defense to action under
antitrust laws; exceptions.
(b) Definitions.
(c) Prerequisites for agreements and
plans of action; delegation of authority to Presidential designees.
(d) Advisory committees; establishment;
applicable provisions; membership;
notice and participation in meetings; verbatim transcript; availability to public.
(e) Rules; promulgation by Presidential
designees; consultation by Attorney
General with Chairman of Federal
Trade Commission; approval of Attorney General; procedures; incorporation of standards and procedures for development of agreements and plans of action.
(f) Commencement of agreements and
plans of action; expiration date; extensions.
(g) Monitoring of agreements and plans
of action by Attorney General and
Chairman of Federal Trade Commission.
(h) Required provisions of rules for implementation of agreements and
plans of action.
(i) Rules; promulgation by Attorney
General and Chairman of Federal
Trade Commission.
(j) Defenses.
(k) Surveys and studies by Attorney General and Federal Trade Commission;
content; annual report to Congress
and President by Attorney General.
(l) Annual report to Congress and President by Presidential designees; contents.
(m) Jurisdiction to enjoin statutory exemption or suspension and order for
production of transcripts, etc.; procedures.
(n) Exemption from Advisory Committee
Act provisions.
(o) Preemption of contract law in emergencies.
2158a.
Repealed.
2159.
Public participation in rulemaking.
(a) Exemption from Administrative Procedure Act.
(b) Opportunity for notice and comment.
(c) Public comment on procurement regulations.
2160.
Employment of personnel; appointment policies; nucleus executive reserve; use of confidential information by employees; printing and distribution of reports.
2161.
Authorization of appropriations; availability
of funds.
(a) Authorization.
(b) Title III authorization.
2162.
Repealed.
2163.
Territorial application of Act.
2163a.
Repealed.
2164.
Separability.
2165.
Repealed.
2166.
Termination of Act.
2167 to 2169. Repealed.
2170.
Authority to review certain mergers, acquisitions, and takeovers.
(a) Investigations.
(b) Mandatory investigations.
(c) Confidentiality of information.
(d) Action by the President.
(e) Findings of the President.
(f) Factors to be considered.

2101 to 2112. Omitted.
TITLE V—SETTLEMENT OF LABOR DISPUTES
2121 to 2123. Omitted.
TITLE VI—CONTROL OF REAL ESTATE CREDIT
2131 to 2137. Repealed or Omitted.
TITLE VII—GENERAL PROVISIONS
2151.

2152.
2153.
2154.
2155.
2156.
2157.

2158.

Small business.
(a) Participation.
(b) Administration of Act.
(c) Advisory committee participation.
(d) Information.
(e) Allocations under section 101.
Definitions.
Civilian personnel.
Regulations and orders.
(a) In general.
(b) Procurement regulations.
Investigations; records; reports; subpoenas;
right to counsel.
Jurisdiction of courts; injunctions; venue;
process; effect of termination of provisions.
Liability for compliance with invalid regulations; discrimination against orders or contracts affected by priorities or allocations.
Voluntary agreements and plans of action for
preparedness programs and expansion of
production capacity and supply.

§ 2061

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

Sec.

2170a.

2170b.

2171.

(g) Report to the Congress.
(h) Regulations.
(i) Effect on other law.
(j) Technology risk assessments.
(k) Quadrennial report.
Prohibition on purchase of United States defense contractors by entities controlled by
foreign governments.
(a) In general.
(b) Inapplicability to certain cases.
(c) Definitions.
Reports on foreign industrial espionage.
(a) In general.
(b) Annual update.
(c) Form of reports.
(d) Omitted.
(e) Definition.
Defense industrial base information system.
(a) Establishment required.
(b) Sources of information.
(c) Strategic plan for developing comprehensive system.
(d) Capabilities of system.
(e) Report on subcontractor and supplier
base.
AMENDMENTS

1952—Act June 30, 1952, ch. 530, title I, § 116(a), 66 Stat.
305, struck out ‘‘CONSUMER AND’’ in title VI heading.
1951—Act July 31, 1951, ch. 275, title I, § 107, 65 Stat.
138, amended heading of title II by inserting ‘‘AND
CONDEMN’’.
TERMINATION DATE
For termination of certain provisions of act Sept. 8,
1950, see section 2166 of this Appendix.
ACT REFERRED TO IN OTHER SECTIONS
This Act is referred to in sections 2182, 2183 of this
Appendix; title 30 section 1604; title 42 sections 1591a,
1593e, 5195a.

§ 2061. Short title
This Act [sections 2061 to 2171 of this Appendix], divided into titles, may be cited as ‘‘the
Defense Production Act of 1950’’.
(Sept. 8, 1950, ch. 932, § 1, 64 Stat. 798.)

Page 222

section 2071 of this Appendix] may be cited as the ‘Defense Production Act Extension and Amendments of
1991’.’’
SHORT TITLE OF 1986 AMENDMENT
Pub. L. 99–441, § 1, Oct. 3, 1986, 100 Stat. 1117, provided
that: ‘‘This Act [amending sections 2099, 2161, and 2166
of this Appendix and provisions set out as a note under
section 5314 of Title 5, Government Organization and
Employees] may be cited as the ‘Defense Production
Act Amendments of 1986’.’’
SHORT TITLE OF 1984 AMENDMENT
Pub. L. 98–265, § 1, Apr. 17, 1984, 98 Stat. 149, provided
that: ‘‘This Act [enacting section 2099 of this Appendix
and amending sections 2091, 2092, 2093, 2161, and 2166 of
this Appendix] may be cited as the ‘Defense Production
Act Amendments of 1984’.’’
SHORT TITLE OF 1980 AMENDMENT
Pub. L. 96–294, title I, part A (§§ 101–107), § 101, June 30,
1980, 94 Stat. 617, provided that: ‘‘This part [enacting
sections 2075, 2076, and 2095 to 2098 of this Appendix,
amending sections 2062, 2091 to 2093, 2151, 2161, and 2166
of this Appendix, and enacting a provision set out as a
note under section 2062 of this Appendix] may be cited
as the ‘Defense Production Act Amendments of 1980’.’’
SHORT TITLE OF 1977 AMENDMENT
Pub. L. 95–37, § 1, June 1, 1977, 91 Stat. 178, provided:
‘‘That this Act [amending section 2166 of this Appendix]
may be cited as the ‘Defense Production Act Extension
Amendments of 1977’.’’
SHORT TITLE OF 1975 AMENDMENT
Pub. L. 94–152, § 1, Dec. 16, 1975, 89 Stat. 810, provided:
‘‘That this Act [enacting section 2158a of this Appendix,
amending sections 2158, 2160, 2162, 2166, 2168, and 2169 of
this Appendix, and enacting provisions set out as notes
under section 2158 of this Appendix] may be cited as the
‘Defense Production Act Amendments of 1975’.’’
SHORT TITLE OF 1974 AMENDMENT
Pub. L. 93–426, § 1, Sept. 30, 1974, 88 Stat. 1166, provided: ‘‘That this Act [enacting section 2169 of this Appendix and amending sections 2094, 2161, and 2166 of this
Appendix] may be cited as the ‘Defense Production Act
Amendments of 1974’.’’

SHORT TITLE OF 1995 AMENDMENT

SHORT TITLE OF 1955 AMENDMENT

Pub. L. 104–64, § 1, Dec. 18, 1995, 109 Stat. 689, provided
that: ‘‘This Act [amending sections 2161 and 2166 of this
Appendix and enacting provisions set out as a note
under section 2062 of this Appendix] may be cited as the
‘Defense Production Act Amendments of 1995’.’’

Act Aug. 9, 1955, ch. 655, § 1, 69 Stat. 580, provided:
‘‘That this Act [amending sections 2062, 2093, 2151, 2158,
2160, 2162, and 2166 of this Appendix and enacting provisions set out as notes under section 2062 of this Appendix] may be cited as the ‘Defense Production Act
Amendments of 1955’.’’

SHORT TITLE OF 1992 AMENDMENT
Pub. L. 102–558, § 1(a), Oct. 28, 1992, 106 Stat. 4198, provided that: ‘‘This Act [enacting sections 2074, 2077, 2078,
2099a, and 2171 of this Appendix, amending sections 2062,
2091 to 2094, 2097, 2099, 2151 to 2155, 2159 to 2161, 2166, and
2170 of this Appendix, sections 1815, 1817, 1818, 1820, 1834,
1834a, and 3104 of Title 12, Banks and Banking, and section 1143 of Title 30, Mineral Lands and Mining, repealing sections 2162, 2165, 2167, and 2169 of this Appendix,
enacting provisions set out as notes under sections
2062, 2099, and 2159 of this Appendix and sections 1815,
1817, 1834, 1834a, and 3104 of Title 12, and repealing provisions set out as notes under sections 1817, 1834, and
1834a of Title 12] may be cited as the ‘Defense Production Act Amendments of 1992’.’’

SHORT TITLE OF 1953 AMENDMENT
Act June 30, 1953, ch. 171, § 1, 67 Stat. 129, provided:
‘‘That this Act [amending sections 2062, 2071, 2091, 2093,
2151, 2152, 2155, 2163a, and 2166 of this Appendix] may be
cited as the ‘Defense Production Act Amendments of
1953’.’’
SHORT TITLE OF 1952 AMENDMENT

SHORT TITLE OF 1991 AMENDMENT

Act June 30, 1952, ch. 530, § 1, 66 Stat. 296, provided:
‘‘That this Act [enacting sections 1894a, 2111, 2112, and
2137 of this Appendix and section 43a of Title 41, Public
Contracts, and amending sections 1884, 1894, 1894a, 2071,
2074, 2092, 2102, 2103, 2107, 2108, 2123, 2155, 2157, 2158, 2162,
2163a, and 2166 of this Appendix and sections 44 and 45
of Title 41] may be cited as the ‘Defense Production Act
Amendments of 1952’.’’

Pub. L. 102–99, § 1, Aug. 17, 1991, 105 Stat. 487, provided
that: ‘‘This Act [amending sections 2071, 2158, 2161, and
2166 of this Appendix, repealing section 2158a of this Appendix, and enacting provisions set out as a note under

Act July 31, 1951, ch. 275, § 1, 65 Stat. 131, provided:
‘‘That this Act [amending sections 1884, 1892 to 1896,

SHORT TITLE OF 1951 AMENDMENT

Page 223

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

1898, 1899, 2071, 2072, 2074, 2081, 2093, 2094, 2102, 2103, 2105,
2109, 2122, 2123, 2131, 2133, 2135, 2151, 2153 to 2156, 2160,
and 2163a to 2166 of this Appendix, repealing section 694f
of former Title 38, Pensions, Bonuses, and Veterans’
Relief, and enacting provisions set out as a note under
section 1907 of this Appendix] may be cited as the ‘Defense Production Act Amendments of 1951’.’’
DELEGATION OF FUNCTIONS
Functions of President under act Sept. 8, 1950 [section
2061 et seq. of this Appendix], relating to production,
conservation, use, control, distribution, and allocation
of energy, delegated to Secretary of Energy, see section
4 of Ex. Ord. No. 11790, eff. June 25, 1974, 39 F.R. 23185,
set out as a note under section 761 of Title 15, Commerce and Trade.
For delegation of certain authority of President
under act Sept. 8, 1950 [section 2061 et seq. of this Appendix] relating to national defense industrial resource
preparedness and statement of related policy, see Ex.
Ord. No. 12919, June 3, 1994, 59 F.R. 29525, set out as a
note under section 2153 of this Appendix.

§ 2062. Declaration of policy
(a) Findings
The Congress finds that—
(1) the vitality of the industrial and technology base of the United States is a foundation of national security that provides the industrial and technological capabilities employed to meet national defense requirements,
in peacetime and in time of national emergency;
(2) in peacetime, the health of the industrial
and technological base contributes to the
technological superiority of United States defense equipment, which is a cornerstone of the
national security strategy, and the efficiency
with which defense equipment is developed
and produced;
(3) in times of crisis, a healthy industrial
base will be able to effectively provide the
graduated response needed to effectively meet
the demands of the emergency;
(4) in view of continuing international problems, the Nation’s demonstrated reliance on
imports of materials and components, and the
need for measures to reduce defense production lead times and bottlenecks, and in order
to provide for the national defense and national security, the United States defense mobilization preparedness effort continues to require the development of—
(A) preparedness programs;
(B) domestic defense industrial base improvement measures;
(C) provisions for a graduated response to
any threatening international or military
situation;
(D) the expansion of domestic productive
capacity beyond the levels needed to meet
the civilian demand; and
(E) some diversion of certain materials
and facilities from civilian use to military
and related purposes.1
(5) to meet the requirements referred to in
this subsection, this Act [sections 2061 to 2171
of this Appendix] affords to the President an
array of authorities to shape defense preparedness programs and to take appropriate steps to
1 So

in original. The period probably should be a semicolon.

§ 2062

maintain and enhance the defense industrial
and technological base;
(6) the activities referred to in this subsection are needed in order to—
(A) improve domestic defense industrial
base efficiency and responsiveness;
(B) reduce the time required for industrial
mobilization in the event of an attack on
the United States; or
(C) to respond to actions occurring outside
of the United States which could result in
the termination or reduction of the availability of strategic and critical materials,
including energy, and which could adversely
affect the national defense preparedness of
the United States;
(7) in order to ensure national defense preparedness, which is essential to national security, it is necessary and appropriate to assure
the availability of domestic energy supplies
for national defense needs;
(8) to further assure the adequate maintenance of the defense industrial base, to the
maximum extent possible, such supplies
should be augmented through reliance on renewable fuels, including solar, geothermal,
and wind energy and ethanol and its derivatives, and on energy conservation measures;
(9) the domestic defense industrial base is a
component part of the core industrial capacity
of the Nation;
(10) much of the industrial capacity which is
relied upon by the Federal Government for
military production and other defense-related
purposes is deeply and directly influenced by—
(A) the overall competitiveness of the
United States industrial economy; and
(B) the ability of United States industry,
in general, to produce internationally competitive products and operate profitably
while maintaining adequate research and development to preserve that competitive edge
in the future, with respect to military and
civilian production;
(11) the domestic defense industrial base is
developing a growing dependency on foreign
sources for critical components and materials
used in manufacturing and assembling major
weapons systems for the national defense;
(12) such dependence is threatening the capability of many critical industries to respond
rapidly to defense production needs in the
event of war or other hostilities or diplomatic
confrontation; and
(13) the inability of United States industry,
especially smaller subcontractors and suppliers, to provide vital parts and components and
other materials would impair our ability to
sustain United States Armed Forces in combat
for longer than a short period.
(b) Statement of policy
It is the policy of the United States that—
(1) in order to ensure productive capacity in
the event of an attack on the United States,
the United States should encourage the geographic dispersal of industrial facilities in the
United States to discourage the concentration
of such productive facilities within limited geographic areas which are vulnerable to attack
by an enemy of the United States;

§ 2062

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

(2) to ensure that essential mobilization requirements are met, consideration should also
be given to stockpiling strategic materials to
the extent that such stockpiling is economical
and feasible;
(3) in the construction of any Governmentowned industrial facility, in the rendition of
any Government financial assistance for the
construction, expansion, or improvement of
any industrial facility, and in the production
of goods and services, under this or any other
Act, each department and agency of the executive branch should apply, under the coordination of the Federal Emergency Management
Agency, when practicable and consistent with
existing law and the desirability for maintaining a sound economy, the principle of the geographic dispersal of such facilities in the interest of national defense, except that nothing
in this paragraph shall preclude the use of existing industrial facilities;
(4) to ensure the adequacy of productive capacity and supply, executive agencies and departments responsible for defense acquisition
should continuously assess the capability of
the domestic defense industrial base to satisfy
peacetime requirements as well as increased
mobilization production requirements, specifically evaluating the availability of adequate
production sources, including subcontractors
and suppliers, materials, skilled labor, and
professional and technical personnel;
(5) every effort should be made to foster cooperation between the defense and commercial
sectors for research and development and for
acquisition of materials, components, and
equipment; and
(6) plans and programs to carry out this section shall be undertaken with due consideration for promoting efficiency and competition.
(Sept. 8, 1950, ch. 932, § 2, 64 Stat. 798; June 30,
1953, ch. 171, § 2, 67 Stat. 129; Aug. 9, 1955, ch. 655,
§ 2, 69 Stat. 580; June 29, 1956, ch. 474, § 4, 70 Stat.
408; Pub. L. 96–294, title I, § 102, June 30, 1980, 94
Stat. 617; Pub. L. 102–558, title I, § 101, Oct. 28,
1992, 106 Stat. 4199.)

Page 224

1980—Pub. L. 96–294 inserted provisions relating to
preparedness respecting termination or reduction in
availability of strategic and critical materials, including energy, and domestic energy supplies for national
defense needs.
1956—Act June 29, 1956, inserted paragraph relating to
encouragement of the geographical dispersal of the industrial facilities of the United States.
1955—Act Aug. 9, 1955, provided that mobilization effort requires development of preparedness programs
and expansion of productive capacity and supply in
order to reduce time required for full mobilization.
1953—Act June 30, 1953, amended section generally to
make it conform to the more limited scope of sections
2061 et seq. of this Appendix.
EFFECTIVE DATE OF 1992 AMENDMENT
Section 304 of Pub. L. 102–558 provided that: ‘‘This Act
[enacting sections 2074, 2077, 2078, 2099a, and 2171 of this
Appendix, amending sections 2062, 2091 to 2094, 2097,
2099, 2151 to 2155, 2159 to 2161, 2166, and 2170 of this Appendix, sections 1815, 1817, 1818, 1820, 1834, 1834a, and 3104
of Title 12, Banks and Banking, and section 1143 of
Title 30, Mineral Lands and Mining, repealing sections
2162, 2165, 2167, and 2169 of this Appendix, enacting provisions set out as notes under sections 2062, 2099, and
2159 of this Appendix and sections 1815, 1817, 1834, 1834a,
and 3104 of Title 12, and repealing provisions set out as
notes under sections 1817, 1834, and 1834a of Title 12] and
the amendments made by this Act shall be deemed to
have become effective on March 1, 1992, except as otherwise specifically provided in this Act.’’
EFFECTIVE DATE OF 1980 AMENDMENT
Section 107 of Pub. L. 96–294 provided that: ‘‘The
amendments made by this part [enacting sections 2075,
2076, and 2095 to 2098 of this Appendix, amending sections 2062, 2091 to 2093, 2151, 2161, and 2166 of this Appendix, and enacting a provision set out as a note under
section 2061 of this Appendix] shall take effect on the
date of the enactment of this part [June 30, 1980].’’
EFFECTIVE DATE OF 1955 AMENDMENT
Section 11 of act Aug. 9, 1955, provided that: ‘‘The provisions of this Act [amending sections 2062, 2093, 2151,
2158, 2160, 2162, and 2166 of this Appendix and enacting
provisions set out as a note under this section] shall
take effect as of the close of July 31, 1955.’’
TERMINATION DATE
For termination of certain provisions of act Sept. 8,
1950, see section 2166 of this Appendix.

REFERENCES IN TEXT

REPORTS TO CONGRESS

This Act, referred to in subsecs. (a)(5) and (b)(3),
means act Sept. 8, 1950, ch. 932, 64 Stat. 798, as amended,
known as the Defense Production Act of 1950, which is
classified to sections 2061 to 2171 of this Appendix. For
complete classification of this Act to the Code, see section 2061 of this Appendix and Tables.

Pub. L. 104–64, § 4, Dec. 18, 1995, 109 Stat. 689, provided
that:
‘‘(a) IN GENERAL.—The President shall prepare and
transmit to the Committee on Banking and Financial
Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the
Senate an interim report and a final report on proposed
legislative modernization of the authorities contained
in the Defense Production Act of 1950 [section 2061 et
seq. of this Appendix].
‘‘(b) TIMING.—The President shall so transmit—
‘‘(1) the interim report required by subsection (a),
not later than January 31, 1997; and
‘‘(2) the final report required by subsection (a), not
later than September 30, 1997.’’

AMENDMENTS
1992—Pub. L. 102–558 amended section generally, substituting provisions relating to findings and statement
of policy, for provisions stating that mobilization effort continued to require diversion of materials and facilities from civilian to military use, and to require development of preparedness programs and expansion of
productive capacity and supply, in order to reduce time
required for full mobilization in case of attack on the
United States or to respond to actions occurring outside the United States resulting in termination or reduction of availability of strategic materials, including
energy, and provisions stating policy of Congress was
to encourage geographical dispersal of industrial facilities, and requiring executive branch departments and
agencies to apply principle of geographical dispersal in
construction of such facilities.

EVALUATION OF DOMESTIC DEFENSE INDUSTRIAL BASE
POLICY
Section 203 of Pub. L. 102–558, established Congressional Commission on the Evaluation of the Defense Industrial Base Policy which was to submit, not later
than Mar. 1, 1995, a final report to Congress outlining
criteria for maintaining strength of domestic industrial base for purposes of supporting national security

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

strategy of United States, taking into consideration,
with respect to each Federal agency and department
with any responsibility for maintaining strength of domestic defense industrial base, adequacy of statutory
framework, budgets, policies, and programs of such
agency or department in maintaining domestic defense
industrial base, and whether such elements were being
effectively implemented and coordinated within such
agency or department, as well as degree to which similar activities in commercial sector were being integrated and implemented by such agency or department,
and further provided for membership of Commission, as
well as staff, powers, interim reports, appropriations,
and termination of Commission 60 days after submission of final report.

TITLE I—PRIORITIES AND ALLOCATIONS
TITLE REFERRED TO IN OTHER SECTIONS
This title is referred to in sections 2157, 2166 of this
Appendix.

§ 2071. Priority in contracts and orders
(a) Allocation of materials, services, and facilities
The President is hereby authorized (1) to require that performance under contracts or orders (other than contracts of employment)
which he deems necessary or appropriate to promote the national defense shall take priority
over performance under any other contract or
order, and, for the purpose of assuring such priority, to require acceptance and performance of
such contracts or orders in preference to other
contracts or orders by any person he finds to be
capable of their performance, and (2) to allocate
materials, services, and facilities in such manner, upon such conditions, and to such extent as
he shall deem necessary or appropriate to promote the national defense.
(b) Critical and strategic materials
The powers granted in this section shall not be
used to control the general distribution of any
material in the civilian market unless the President finds (1) that such material is a scarce and
critical material essential to the national defense, and (2) that the requirements of the national defense for such material cannot otherwise be met without creating a significant dislocation of the normal distribution of such material in the civilian market to such a degree as
to create appreciable hardship.
(c) Domestic energy; materials, equipment, and
services
(1) Notwithstanding any other provision of
this Act [sections 2061 to 2171 of this Appendix],
the President may, by rule or order, require the
allocation of, or the priority performance under
contracts or orders (other than contracts of employment) relating to, materials, equipment,
and services in order to maximize domestic energy supplies if he makes the findings required
by paragraph (3) of this subsection.
(2) The authority granted by this subsection
may not be used to require priority performance
of contracts or orders, or to control the distribution of any supplies of materials, services, and
facilities in the marketplace, unless the President finds that—
(A) such materials, services, and facilities
are scarce, critical, and essential—
(i) to maintain or expand exploration, production, refining, transportation;

§ 2071

(ii) to conserve energy supplies; or
(iii) to construct or maintain energy facilities; and
(B) maintenance or expansion of exploration,
production, refining, transportation, or conservation of energy supplies or the construction and maintenance of energy facilities cannot reasonably be accomplished without exercising the authority specified in paragraph (1)
of this subsection.
(3) During any period when the authority conferred by this subsection is being exercised, the
President shall take such action as may be appropriate to assure that such authority is being
exercised in a manner which assures the coordinated administration of such authority with any
priorities or allocations established under subsection (a) of this section and in effect during
the same period.
(Sept. 8, 1950, ch. 932, title I, § 101, 64 Stat. 799;
July 31, 1951, ch. 275, title I, § 101(a), 65 Stat. 132;
June 30, 1952, ch. 530, title I, §§ 101, 102, 66 Stat.
296; June 30, 1953, ch. 171, § 3, 67 Stat. 129; Pub. L.
94–163, title I, § 104(a), Dec. 22, 1975, 89 Stat. 878;
Pub. L. 102–99, § 6, Aug. 17, 1991, 105 Stat. 490.)
AMENDMENTS
1991—Subsec. (a)(2). Pub. L. 102–99, § 6(1), substituted
‘‘materials, services, and facilities’’ for ‘‘materials and
facilities’’.
Subsec. (c)(1). Pub. L. 102–99, § 6(2), substituted ‘‘materials, equipment, and services’’ for ‘‘supplies of materials and equipment’’.
Subsec. (c)(2) to (4). Pub. L. 102–99, § 6(3), (4), added
par. (2), redesignated par. (4) as (3), and struck out
former pars. (2) and (3) which read as follows:
‘‘(2) The President shall report to the Congress within
sixty days after the date of enactment of this subsection on the manner in which the authority contained in paragraph (1) will be administered. This report shall include the manner in which allocations will
be made, the procedure for requests and appeals, the
criteria for determining priorities as between competing requests, and the office or agency which will administer such authorities.
‘‘(3) The authority granted in this subsection may
not be used to require priority performance of contracts or orders, or to control the distribution of any
supplies of materials and equipment in the marketplace, unless the President finds that—
‘‘(A) such supplies are scarce, critical, and essential
to maintain or further (i) exploration, production, refining, transportation, or (ii) the conservation of energy supplies, or (iii) for the construction and maintenance of energy facilities; and
‘‘(B) maintenance or furtherance of exploration,
production, refining, transportation, or conservation
of energy supplies or the construction and maintenance of energy facilities cannot reasonably be accomplished without exercising the authority specified in paragraph (1) of this subsection.’’
1975—Subsec. (c). Pub. L. 94–163 added subsec. (c).
1953—Subsec. (a). Act June 30, 1953, struck out provisions which related to slaughtering of livestock and allocation of meat and meat products.
Subsec. (b). Act June 30, 1953, retained priorities and
allocation authority for defense production but generally to discontinue such authority with respect to the
civilian market except in the special cases where, because of shortages and demands of the defense effort,
there otherwise would be a significant dislocation in
the civilian market resulting in appreciable hardship.
1952—Act June 30, 1952, redesignated existing provisions as subsec. (a), inserted provisions relating to
meat and meat products, and added subsec. (b).

§ 2072

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

1951—Act July 31, 1951, inserted provision relating to
slaughtering of livestock.
EFFECTIVE DATE OF 1991 AMENDMENT
Section 7 of Pub. L. 102–99 provided that: ‘‘This Act
[amending this section and sections 2158, 2161, and 2166
of this Appendix, repealing section 2158a of this Appendix, and enacting provisions set out as a note under
section 2061 of this Appendix] shall take effect on October 20, 1990.’’
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
DELEGATION OF FUNCTIONS
Functions of President under act Sept. 8, 1950 [section
2061 et seq. this Appendix], relating to production, conservation, use, control, distribution, and allocation of
energy, delegated to Secretary of Energy, see section 4
of Ex. Ord. No. 11790, June 25, 1974, 39 F.R. 23185, set out
as a note under section 761 of Title 15, Commerce and
Trade.
For delegation of certain authority of President
under this section, see sections 201 to 203 of Ex. Ord.
No. 12919, June 3, 1994, 59 F.R. 29526, 29527, set out as a
note under section 2153 of this Appendix.
EXPIRATION ON SEPTEMBER 30, 1994, OF PRESIDENTIAL
AUTHORITY TO ISSUE ORDERS RELATING TO DOMESTIC
ENERGY SUPPLIES
Pub. L. 94–163, title I, § 104(b)(1), Dec. 22, 1975, 89 Stat.
879, as amended by Pub. L. 99–58, title I, § 101(b), July 2,
1985, 99 Stat. 102; Pub. L. 101–46, § 1(2), June 30, 1989, 103
Stat. 132; Pub. L. 101–262, § 2(a), Mar. 31, 1990, 104 Stat.
124; Pub. L. 101–360, § 2(a), Aug. 10, 1990, 104 Stat. 421;
Pub. L. 101–383, § 2(1), Sept. 15, 1990, 104 Stat. 727, which
provided that the authority to issue any rules or orders
under subsec. (c) of this section was to expire at midnight Sept. 30, 1994, but such expiration was not to affect any action or pending proceedings, civil or criminal, not finally determined on such date, nor any action or proceeding based upon any act committed prior
to such date, was repealed by Pub. L. 105–388, § 6, Nov.
13, 1998, 112 Stat. 3479.
EXPRESS CONGRESSIONAL ENACTMENT REQUIRED TO AFFECT PRESIDENTIAL AUTHORITY RELATING TO DOMESTIC ENERGY SUPPLIES
Pub. L. 94–163, title I, § 104(b), formerly § 104(b)(2), Dec.
22, 1975, 89 Stat. 879, as renumbered by Pub. L. 105–388,
§ 6, Nov. 13, 1998, 112 Stat. 3479, provided that: ‘‘The expiration of the Defense Production Act of 1950 [section
2061 et seq. of this Appendix] or any amendment of such
Act after the date of enactment of this Act [Dec. 22,
1975] shall not affect the authority of the President
under section 101(c) of such Act [subsec. (c) of this section], as amended by subsection (a) of this section and
in effect on the date of enactment of this Act, unless
Congress by law expressly provides to the contrary.’’
EXECUTIVE ORDER NO. 10161
Ex. Ord. No. 10161, Sept. 9, 1950, 15 F.R. 6105, as
amended by Ex. Ord. No. 10200, Jan. 3, 1951, 16 F.R. 61;
Ex. Ord. No. 10233, Apr. 23, 1951, 16 F.R. 3503; Ex. Ord.
No. 10281, Aug. 28, 1951, 16 F.R. 8789; Ex. Ord. No. 10301,
Nov. 5, 1951, 16 F.R. 11257; Ex. Ord. No. 10324, Feb. 6,
1952, 17 F.R. 1171; Ex. Ord. No. 10359, June 9, 1952, 17 F.R.
5269; Ex. Ord. No. 10373, July 15, 1952, 17 F.R. 6425; Ex.
Ord. No. 10377, July 28, 1952, 17 F.R. 6891; Ex. Ord. No.
10390, Sept. 2, 1952, 17 F.R. 7995; and Ex. Ord. No. 10433,
Feb. 4, 1953, 18 F.R. 761, which related to delegation of
President’s functions, was revoked by Ex. Ord. No.
10480, Aug. 18, 1953, 18 F.R. 4939, formerly set out under
section 2153 of this Appendix.
ABOLITION OF WAGE STABILIZATION BOARD AND CREATION
OF NEW BOARD
Wage Stabilization Board created by Ex. Ord. No.
10161, eff. Sept. 9, 1950, 15 F.R. 6105, as amended, abol-

Page 226

ished by section 2103(b)(6) of this Appendix. A new Wage
Stabilization Board was created by section 2103(b)(1),
which terminated according to section 2166 of this Appendix Apr. 30, 1953.
POWERS OF SECRETARY OF COMMERCE UNDER EX. ORD.
NO. 10161
The Secretary of Commerce by F.R. Doc. 50–8068, filed
Sept. 13, 1950, 15 F.R. 6182, established the National Production Authority in the Department of Commerce to
perform the functions and exercise the powers vested in
the Secretary of Commerce by Ex. Ord. No. 10161, and
established the Advisory Committee on Priorities Administration which was to serve in an advisory capacity with respect to policy matters. The National Production Authority was abolished and its functions
merged into the Business and Defense Services Administration by Secretary of Commerce order, dated Oct. 1,
1953, which in turn was abolished by Department Organization Order 40–1A of Sept. 15, 1970 and its functions
transferred to the Bureau of Domestic Commerce. All
functions of the Bureau of Domestic Commerce were
transferred by the Secretary of Commerce to the Domestic and International Business Administration,
within the Department of Commerce, eff. Nov. 17, 1972.
CROSS REFERENCES
Discrimination against orders or contracts affected
by priorities or allocations prohibited, see section 2157
of this Appendix.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2072, 2095, 2096,
2151, 2157 of this Appendix; title 10 sections 9511, 9512.

§ 2072. Hoarding of designated scarce materials
In order to prevent hoarding, no person shall
accumulate (1) in excess of the reasonable demands of business, personal, or home consumption, or (2) for the purpose of resale at prices in
excess of prevailing market prices, materials
which have been designated by the President as
scarce materials or materials the supply of
which would be threatened by such accumulation. The President shall order published in the
Federal Register, and in such other manner as
he may deem appropriate, every designation of
materials the accumulation of which is unlawful
and any withdrawal of such designation.
In making such designations the President
may prescribe such conditions with respect to
the accumulation of materials in excess of the
reasonable demands of business, personal, or
home consumption as he deems necessary to
carry out the objectives of this Act [sections
2061 to 2171 of this Appendix]. This section shall
not be construed to limit the authority contained in sections 101 and 704 of this Act [sections 2071 and 2154 of this Appendix].
(Sept. 8, 1950, ch. 932, title I, § 102, 64 Stat. 799;
July 31, 1951, ch. 275, title I, § 101(b), 65 Stat. 132.)
AMENDMENTS
1951—Act July 31, 1951, authorized President to prescribe conditions and exceptions allowing maintenance
of substantial inventories of critical materials in certain cases.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
DELEGATION OF FUNCTIONS
Functions of President under act Sept. 8, 1950 [section
2061 et seq. of this Appendix], relating to production,

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

conservation, use, control, distribution, and allocation
of energy, delegated to Secretary of Energy, see section
4 of Ex. Ord. No. 11790, June 25, 1974, 39 F.R. 23185, set
out as a note under section 761 of Title 15, Commerce
and Trade.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2157, 2166 of this
Appendix.

§ 2073. Penalties
Any person who willfully performs any act
prohibited, or willfully fails to perform any act
required, by the provisions of this title [sections
2071 to 2078 of this Appendix] or any rule, regulation, or order thereunder, shall, upon conviction, be fined not more than $10,000 or imprisoned for not more than one year, or both.
(Sept. 8, 1950, ch. 932, title I, § 103, 64 Stat. 799.)
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 2157 of this Appendix.

§ 2074. Limitation on actions without Congressional authorization
(a) Wage or price controls
No provision of this Act [sections 2061 to 2171
of this Appendix] shall be interpreted as providing for the imposition of wage or price controls
without the prior authorization of such action
by a joint resolution of Congress.
(b) Chemical or biological weapons
No provision of title I of this Act [sections 2071
to 2078 of this Appendix] shall be exercised or interpreted to require action or compliance by any
private person to assist in any way in the production of or other involvement in chemical or
biological warfare capabilities, unless authorized by the President (or the President’s designee who is serving in a position at level I of
the Executive Schedule in accordance with section 5312 of title 5, United States Code) without
further redelegation.
(Sept. 8, 1950, ch. 932, title I, § 104, as added Pub.
L. 102–558, title I, § 112, Oct. 28, 1992, 106 Stat.
4202.)
PRIOR PROVISIONS
A prior section 2074, act Sept. 8, 1950, ch. 932, title I,
§ 104, as added July 31, 1951, ch. 275, title I, § 101(c), 65
Stat. 132; amended June 30, 1952, ch. 530, § 103, 66 Stat.
297, which related to limitations on imports of fats and
oils, terminated at close of June 30, 1953, by terms of
section 2166(a) of this Appendix.
EFFECTIVE DATE
Section deemed to have become effective Mar. 1, 1992,
see section 304 of Pub. L. 102–558, set out as an Effective
Date of 1992 Amendment note under section 2062 of this
Appendix.
DELEGATION OF AUTHORITY
Authority of President under subsec. (b) of this section delegated to Secretary of Defense by section 204 of
Ex. Ord. No. 12919, June 3, 1994, 59 F.R. 29527, set out as
a note under section 2153 of this Appendix.

§ 2077

SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 2166 of this Appendix.

§ 2075. Presidential power to ration gasoline
among classes of end-users unaffected
Nothing in this Act [sections 2061 to 2171 of
this Appendix] shall be construed to authorize
the President to institute, without the approval
of the Congress, a program for the rationing of
gasoline among classes of end-users.
(Sept. 8, 1950, ch. 932, title I, § 105, as added Pub.
L. 96–294, title I, § 103, June 30, 1980, 94 Stat. 617.)
EFFECTIVE DATE
Section effective June 30, 1980, see section 107 of Pub.
L. 96–294, set out as an Effective Date of 1980 Amendment note under section 2062 of this Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.

§ 2076. Designation of energy as a strategic and
critical material
For purposes of this Act [sections 2061 to 2171
of this Appendix], ‘‘energy’’ shall be designated
as a ‘‘strategic and critical material’’ after the
date of the enactment of this section [June 30,
1980]: Provided, That no provision of this Act
[sections 2061 to 2171 of this Appendix] shall, by
virtue of such designation—
(1) grant any new direct or indirect authority to the President for the mandatory allocation or pricing of any fuel or feedstock (including, but not limited to, crude oil, residual
fuel oil, any refined petroleum product, natural gas, or coal) or electricity or any other
form of energy; or
(2) grant any new direct or indirect authority to the President to engage in the production of energy in any manner whatsoever (such
as oil and gas exploration and development, or
any energy facility construction), except as
expressly provided in sections 305 and 306 [sections 2095 and 2096 of this Appendix] for synthetic fuel production.
(Sept. 8, 1950, ch. 932, title I, § 106, as added Pub.
L. 96–294, title I, § 103, June 30, 1980, 94 Stat. 617.)
EFFECTIVE DATE
Section effective June 30, 1980, see section 107 of Pub.
L. 96–294, set out as an Effective Date of 1980 Amendment note under section 2062 of this Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.

§ 2077. Strengthening domestic capability
(a) In general
Utilizing the authority of title III of this Act
[sections 2091 to 2099a of this Appendix] or any
other provision of law, the President may provide appropriate incentives to develop, maintain, modernize, and expand the productive capacities of domestic sources for critical components, critical technology items, and industrial
resources essential for the execution of the national security strategy of the United States.

§ 2078

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

(b) Critical components and critical technology
items
(1) Identification
(A) In general
The President, acting through the Secretary of Defense, shall identify critical
components and critical technology items
for each item on the Critical Items List of
the Commanders-in-Chief of the Unified and
Specified Commands and other items within
the inventory of weapon systems and defense
equipment.
(B) Definition
Any component identified as critical by a
National Security Assessment conducted
pursuant to section 113(i) of title 10, United
States Code, or by a Presidential determination as a result of a petition filed under section 232 of the Trade Expansion Act of 1962
[19 U.S.C. 1862] shall be designated as a critical component for purposes of this Act [sections 2061 to 2171 of this Appendix], unless
the President determines that the designation is unwarranted.
(2) Maintenance of reliable sources of supply
The President shall take appropriate actions
to assure that critical components or critical
technology items are available from reliable
sources when needed to meet defense requirements during peacetime, graduated mobilization, and national emergency.
(3) Appropriate action
For purposes of this subsection, appropriate
action may include—
(A) restricting contract solicitations to reliable sources;
(B) restricting contract solicitations to domestic sources pursuant to—
(i) section 2304(b)(1)(B) or section
2304(c)(3) of title 10, United States Code;
(ii) section 303(b)(1)(B) or section 303(c)(3)
of the Federal Property and Administrative Services Act of 1949 [41 U.S.C.
253(b)(1)(B), (c)(3)]; or
(iii) other statutory authority;
(C) stockpiling critical components; and
(D) developing substitutes for a critical
component or a critical technology item.
(Sept. 8, 1950, ch. 932, title I, § 107, as added Pub.
L. 102–558, title I, § 111, Oct. 28, 1992, 106 Stat.
4201.)
EFFECTIVE DATE
Section deemed to have become effective Mar. 1, 1992,
see section 304 of Pub. L. 102–558, set out as an Effective
Date of 1992 Amendment note under section 2062 of this
Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
DELEGATION OF FUNCTIONS
Functions of the President under act Sept. 8, 1950
[section 2061 et seq. of this Appendix], relating to the
production, conservation, use, control, distribution,
and allocation of energy, delegated to the Secretary of
Energy, see section 4 of Ex. Ord. No. 11790, eff. June 25,

Page 228

1974, 39 F.R. 23185, set out as a note under section 761
of Title 15, Commerce and Trade.

§ 2078. Modernization of small business suppliers
(a) In general
In providing any assistance under this Act
[sections 2061 to 2171 of this Appendix], the
President shall accord a strong preference for
small business concerns which are subcontractors or suppliers, and, to the maximum extent
practicable, to such small business concerns located in areas of high unemployment or areas
that have demonstrated a continuing pattern of
economic decline, as identified by the Secretary
of Labor.
(b) Modernization of equipment
(1) In general
Funds authorized under title III [sections
2091 to 2099a of this Appendix] may be used to
guarantee the purchase or lease of advance
manufacturing equipment, and any related
services with respect to any such equipment
for purposes of this Act [sections 2061 to 2171 of
this Appendix].
(2) Small business suppliers
In considering proposals for title III [sections 2091 to 2099a of this Appendix] projects
under paragraph (1), the President shall provide a strong preference for proposals submitted by a small business supplier or subcontractor whose proposal—
(A) has the support of the department or
agency which will provide the guarantee;
(B) reflects that the small business concern has made arrangements to obtain qualified outside assistance to support the effective utilization of the advanced manufacturing equipment being proposed for installation; and
(C) meets the requirements of section 301,
302, or 303 [section 2091, 2092, or 2093 of this
Appendix].
(Sept. 8, 1950, ch. 932, title I, § 108, as added Pub.
L. 102–558, title I, § 111, Oct. 28, 1992, 106 Stat.
4202.)
EFFECTIVE DATE
Section deemed to have become effective Mar. 1, 1992,
see section 304 of Pub. L. 102–558, set out as an Effective
Date of 1992 Amendment note under section 2062 of this
Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
DELEGATION OF FUNCTIONS
Functions of the President under act Sept. 8, 1950
[section 2061 et seq. of this Appendix], relating to the
production, conservation, use, control, distribution,
and allocation of energy, delegated to the Secretary of
Energy, see section 4 of Ex. Ord. No. 11790, eff. June 25,
1974, 39 F.R. 23185, set out as a note under section 761
of Title 15, Commerce and Trade.

TITLE II—AUTHORITY TO REQUISITION
AND CONDEMN
AMENDMENTS
1951—Act July 31, 1951, ch. 275, title I, § 102(a), 65 Stat.
132, in heading inserted ‘‘AND CONDEMN’’.

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

§ 2081. Omitted
CODIFICATION
Section, acts Sept. 8, 1950, ch. 932, title II, § 201, 64
Stat. 799; July 31, 1951, ch. 275, title I, § 102 (b), 65 Stat.
132, which related to requisition of property needed for
national defense, terminated at close of June 30, 1953,
by the terms of section 2166(a) of this Appendix.

TITLE III—EXPANSION OF PRODUCTIVE
CAPACITY AND SUPPLY
TITLE REFERRED TO IN OTHER SECTIONS
This title is referred to in sections 2077, 2078, 2161, 2166
of this Appendix.

§ 2091. Loan guarantees
(a) Purpose of loans; guaranteeing agencies;
Presidential determinations
(1) In order to expedite production and deliveries or services under Government contracts,
the President may authorize, subject to such
regulations as he may prescribe, the Department of Defense, the Department of Energy, the
Department of Commerce, and such other agencies of the United States engaged in procurement for the national defense as he may designate (hereinafter referred to as ‘‘guaranteeing
agencies’’), without regard to provisions of law
relating to the making, performance, amendment, or modification of contracts, to guarantee
in whole or in part any public or private financing institution (including any Federal Reserve
bank), by commitment to purchase, agreement
to share losses, or otherwise, against loss of
principal or interest on any loan, discount, or
advance, or on any commitment in connection
therewith, which may be made by such financing institution for the purpose of financing any
contractor, subcontractor, or other person in
connection with the performance of any contract or other operation deemed by the guaranteeing agency to be necessary to expedite or expand production and deliveries or services under
Government contracts for the procurement of
industrial resources or critical technology items
essential to the national defense, or for the purpose of financing any contractor, subcontractor,
or other person in connection with or in contemplation of the termination, in the interest of
the United States, of any contract made for the
national defense; but no small-business concern
(as defined in section 714(a)(1) of this Act
[former section 2163a(a)(1) of this Appendix])
shall be held ineligible for the issuance of such
a guaranty by reason of alternative sources of
supply.
(2) Except as provided in section 305 [section
2095 of this Appendix] and section 306 [section
2096 of this Appendix], no authority contained in
sections 301, 302, or 303 [sections 2091, 2092, or
2093 of this Appendix] may be used in any manner—
(A) in the development, production, or distribution of synthetic fuel;
(B) for any synthetic fuel project;
(C) to assist any person for the purpose of
providing goods or services to a synthetic fuel
project; or
(D) to provide any assistance to any person
for the purchase of synthetic fuel.

§ 2091

(3) Except during periods of national emergency declared by the Congress or the President,
a guarantee may be entered into under this section only if the President determines that—
(A) the guaranteed contract or activity is
for industrial resources or a critical technology item which is essential to the national
defense;
(B) without the guarantee, United States industry cannot reasonably be expected to provide the needed industrial resources or critical
technology item in a timely manner;
(C) the guarantee is the most cost-effective,
expedient, and practical alternative for meeting the need involved; and
(D) the combination of the United States national defense demand and foreseeable nondefense demand is not less than the output of
domestic industrial capability, as determined
by the President, including the output to be
established through the guarantee.
(b) Fiscal agents; accountability; reimbursement
Any Federal agency or any Federal Reserve
bank, when designated by the President, is authorized to act, on behalf of any guaranteeing
agency, as fiscal agent of the United States in
the making of such contracts of guarantee and
in otherwise carrying out the purposes of this
section. All such funds as may be necessary to
enable any such fiscal agent to carry out any
guarantee made by it on behalf of any guaranteeing agency shall be supplied and disbursed by
or under authority from such guaranteeing
agency. No such fiscal agent shall have any responsibility or accountability except as agent in
taking any action pursuant to or under authority of the provisions of this section. Each such
fiscal agent shall be reimbursed by each guaranteeing agency for all expenses and losses incurred by such fiscal agent in acting as agent on
behalf of such guaranteeing agency, including
among such expenses, notwithstanding any
other provision of law, attorneys’ fees and expenses of litigation.
(c) Supervision; interest, fees, procedures
All actions and operations of such fiscal
agents under authority of or pursuant to this
section shall be subject to the supervision of the
President, and to such regulations as he may
prescribe; and the President is authorized to
prescribe, either specifically or by maximum
limits or otherwise, rates of interest, guarantee
and commitment fees, and other charges which
may be made in connection with loans, discounts, advances, or commitments guaranteed
by the guaranteeing agencies through such fiscal agents, and to prescribe regulations governing the forms and procedures (which shall be
uniform to the extent practicable) to be utilized
in connection with such guarantees.
(d) Funds available for guarantees
Each guaranteeing agency is authorized to use
for the purposes of this section any funds which
have heretofore been appropriated or allocated
or which hereafter may be appropriated or allocated to it, or which are or may become available to it, for such purposes or for the purpose
of meeting the necessities of the national defense.

§ 2091

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

(e) Identification of industrial resource shortfall;
prevention of personal financial insolvency
or bankruptcy
(1)(A) Except as provided in subparagraph (D),
a guarantee may be made under this section
only if the industrial resource shortfall which
such guarantee is intended to correct has been
identified in the Budget of the United States, or
amendments thereto, submitted to the Congress,
accompanied by a statement from the President
demonstrating that the budget submission is in
accordance with the provisions of subsection
(a)(3) of this section.
(B) Any such guarantee may be made only
after 60 days have elapsed after such industrial
resource shortfall has been identified pursuant
to subparagraph (A).
(C) If the making of any guarantee or guarantees to correct an industrial resource shortfall
would cause the aggregate outstanding amount
of all guarantees for such industrial resource
shortfall to exceed $50,000,000, any such guarantee or guarantees may be made only if specifically authorized by law.
(D) The requirements of subparagraphs (A),
(B), and (C) may be waived—
(i) during periods of national emergency declared by the Congress or the President; or
(ii) upon a determination by the President,
on a nondelegable basis, that a specific guarantee is necessary to avert an industrial resource or critical technology shortfall that
would severely impair national defense capability.
(2) The authority conferred by this section
shall not be used primarily to prevent the financial insolvency or bankruptcy of any person, unless
(A) the President certifies that the insolvency or bankruptcy would have a direct and
substantially adverse effect upon defense production; and
(B) a copy of such certification, together
with a detailed justification thereof, is transmitted to the Congress and to the Committee
on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Banking, Finance and Urban Affairs of the House of Representatives at least ten days prior to the exercise of that authority for such use.
(Sept. 8, 1950, ch. 932, title III, § 301, 64 Stat. 800;
June 30, 1953, ch. 171, § 4, 67 Stat. 129; Pub. L.
91–379, title I, § 104, Aug. 15, 1970, 84 Stat. 799;
Pub. L. 96–294, title I, § 104(a), (b), June 30, 1980,
94 Stat. 618; Pub. L. 98–265, §§ 3(a), 4(a), Apr. 17,
1984, 98 Stat. 149, 150; Pub. L. 102–558, title I,
§§ 121(a), 141, Oct. 28, 1992, 106 Stat. 4203, 4217.)
AMENDMENTS
1992—Subsec. (a)(1). Pub. L. 102–558, § 121(a)(1), substituted ‘‘to expedite or expand production and deliveries or services under Government contracts for the
procurement of industrial resources or critical technology items essential to the national defense’’ for ‘‘to
expedite production and deliveries or services under
Government contracts for the procurement of materials or the performance of services for the national defense,’’.
Subsec. (a)(3)(A). Pub. L. 102–558, § 121(a)(2), amended
subpar. (A) generally. Prior to amendment, subpar. (A)
read as follows: ‘‘the guaranteed contract or operation

Page 230

is for a material, or the performance of a service, which
is essential to the national defense;’’.
Subsec. (a)(3)(B). Pub. L. 102–558, § 121(a)(3), substituted ‘‘without’’ for ‘‘Without’’ and ‘‘the needed industrial resources or critical technology item’’ for ‘‘the
capability for the needed material or service’’.
Subsec. (a)(3)(D). Pub. L. 102–558, § 121(a)(4), amended
subpar. (D) generally. Prior to amendment, subpar. (D)
read as follows: ‘‘the United States national defense demand is equal to, or greater than, the output of domestic industrial capability which the President reasonably determines to be available for national defense, including the output to be established through the guarantee.’’
Subsec. (e)(1)(A). Pub. L. 102–558, § 121(a)(5), substituted ‘‘Except as provided in subparagraph (D)’’ for
‘‘Except during periods of national emergency declared
by the Congress or the President’’.
Subsec. (e)(1)(C). Pub. L. 102–558, § 121(a)(6), substituted ‘‘$50,000,000’’ for ‘‘$25,000,000’’.
Subsec. (e)(1)(D). Pub. L. 102–558, § 121(a)(7), added subpar. (D).
Subsec. (e)(2)(B). Pub. L. 102–558, § 141, substituted
‘‘and to the Committee on Banking, Housing, and
Urban Affairs of the Senate and the Committee on
Banking, Finance and Urban Affairs of the House of
Representatives’’ for ‘‘and to the Committees on Banking and Currency of the respective Houses’’.
1984—Subsec. (a)(3). Pub. L. 98–265, § 3(a), added par.
(3).
Subsec. (e)(1). Pub. L. 98–265, § 4(a), substituted provision that a guarantee be made under this section only
if the industrial resource shortfall which such guarantee is intended to correct is identified for provision
that the maximum obligation under this section not
exceed $38,000,000, but if guarantees exceed such
amount, Congressional committees be notified and no
disapproving resolution be adopted within a 60-day period of continuous session of Congress, with provision
for determination of continuity of Congressional session for the purpose of computing such 60-day period.
1980—Subsec. (a). Pub. L. 96–294, § 104(a), designated
existing provisions as par. (1), substituted references to
Departments of Defense and Energy for references to
Departments of Army, Navy, and Air Force, and added
par. (2).
Subsec. (e)(1). Pub. L. 96–294, § 104(b), designated existing provisions as subpar. (A), substituted ‘‘Except as
provided in subparagraph (B)’’ for ‘‘Except with the approval of Congress’’ and ‘‘$38,000,000’’ for ‘‘$20,000,000’’,
and added subpar. (B).
1970—Subsec. (e). Pub. L. 91–379 added subsec. (e).
1953—Subsec. (a). Act June 30, 1953, made it clear that
Government guaranties of credit may be made under
this section in connection with the termination of Government contracts, and to provide that no small-business concern shall be denied a guaranty merely because
an alternative source of supply exists for the item to be
procured on the Government contract involved.
CHANGE OF NAME
Committee on Banking, Finance and Urban Affairs of
House of Representatives treated as referring to Committee on Banking and Financial Services 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.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see section 304 of Pub. L.
102–558, set out as a note under section 2062 of this Appendix.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96–294 effective June 30, 1980,
see section 107 of Pub. L. 96–294, set out as a note under
section 2062 of this Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.

Page 231

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE
TRANSFER OF FUNCTIONS

Act July 30, 1953, ch. 282, title I, § 107(a)(2), (b), 67
Stat. 273, required President to transfer functions, powers, duties, and authority of Reconstruction Finance
Corporation under sections 2091 to 2094 of this Appendix
within sixty days after July 30, 1953, and provided that
all assets, funds, contracts, loans, liabilities, commitments, authorizations, allocations, personnel, and
records of Corporation, which Director of Bureau of the
Budget [now Office of Management and Budget], determined necessary to performance of such functions were
to be transferred to officer or agency of Government to
which such functions were transferred.
DELEGATION OF FUNCTIONS
Functions of President under act Sept. 8, 1950 [section
2061 et seq. of this Appendix], relating to production,
conservation, use, control, distribution, and allocation
of energy, delegated to Secretary of Energy, see section
4 of Ex. Ord. No. 11790, eff. June 25, 1974, 39 F.R. 23185,
set out as a note under section 761 of Title 15, Commerce and Trade.
EXECUTIVE ORDER NO. 10223
Ex. Ord. No. 10223, Mar. 12, 1951, 16 F.R. 2247, providing for the performance of certain functions under act
Sept. 8, 1950, was revoked by section 404 of Ex. Ord. No.
10281, Aug. 28, 1951, 16 F.R. 8789.
CROSS REFERENCES
Limitation on aggregate amount of loans, guarantees, etc., under this section, see section 2161 of this
Appendix.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2078, 2095, 2096
of this Appendix.

§ 2092. Loans to private business enterprises
(a) Purposes
To expedite production and deliveries or services to aid in carrying out Government contracts for the procurement of industrial resources or a critical technology item for the national defense, the President may make provision for loans (including participations in, or
guarantees of, loan) to private business enterprises (including research corporations not organized for profit) for the expansion of capacity,
the development of technological processes, or
the production of essential materials, including
the exploration, development, and mining of
strategic and critical metals and minerals, and
manufacture of newsprint.
(b) Terms and conditions; Presidential determinations
Such loans may be made without regard to the
limitations of existing law and on such terms
and conditions as the President deems necessary, except that—
(1) financial assistance may be extended
only to the extent that it is not otherwise
available on reasonable terms; and
(2) except during periods of national emergency declared by the Congress or the President, no such loan may be made unless the
President determines that—
(A) the loan is for the expansion of capacity, the development of a technological process, or the production of materials essential
to the national defense;
(B) without the loan, United States industry cannot reasonably be expected to provide

§ 2092

the needed capacity, technological processes, or materials in a timely manner;
(C) the loan is the most cost-effective, expedient, and practical alternative method
for meeting the need; and
(D) the combination of the United States
national defense demand and foreseeable
nondefense demand is not less than the output of domestic industrial capability, as determined by the President, including the
output to be established through the loan.
(c) Identification of industrial resource shortfall
(1) Except as provided in paragraph (4), no
loans may be made under this section, unless
the industrial resource shortfall which such loan
is intended to correct has been identified in the
Budget of the United States, or amendments
thereto, submitted to the Congress, accompanied by a statement from the President demonstrating that the budget submission is in accordance with the provisions of subsection (b)(2)
of this section.
(2) Any such loan may be made only after 60
days have elapsed after such industrial resource
shortfall has been identified pursuant to paragraph (1).
(3) If the making of any loan or loans to correct an industrial resource shortfall would cause
the aggregate outstanding amount of all loans
for such industrial resource shortfall to exceed
$50,000,000, any such loan or loans may be made
only if specifically authorized by law.
(4) The requirements of paragraphs (1), (2), and
(3) may be waived—
(A) during periods of national emergency declared by the Congress or the President; and
(B) upon a determination by the President,
on a nondelegable basis, that a specific guarantee is necessary to avert an industrial resource or critical technology shortfall that
would severely impair national defense capability.
(Sept. 8, 1950, ch. 932, title III, § 302, 64 Stat. 801;
June 30, 1952, ch. 530, title I, § 104, 66 Stat. 298;
Pub. L. 93–155, title VIII, § 807(b), Nov. 16, 1973, 87
Stat. 615; Pub. L. 96–294, title I, § 104(c), June 30,
1980, 94 Stat. 618; Pub. L. 98–265, §§ 3(b), 4(b), Apr.
17, 1984, 98 Stat. 149, 151; Pub. L. 102–558, title I,
§ 121(b), Oct. 28, 1992, 106 Stat. 4204.)
AMENDMENTS
1992—Subsec. (a). Pub. L. 102–558, § 121(b)(1), substituted ‘‘for the procurement of industrial resources or
a critical technology item for the national defense’’ for
‘‘for the procurement of materials or the performance
of services for the national defense’’.
Subsec. (b)(2)(D). Pub. L. 102–558, § 121(b)(2), amended
subpar. (D) generally. Prior to amendment, subpar. (D)
read as follows: ‘‘the United States national defense demand is equal to, or greater than, domestic industrial
capability which the President reasonably determines
to be available for national defense, including the output to be established through the loan.’’
Subsec. (c)(1). Pub. L. 102–558, § 121(b)(3), substituted
‘‘Except as provided in paragraph (4), no loans may be
made under this section’’ for ‘‘No such loan may be
made under this section, except during periods of national emergency declared by the Congress or the
President’’.
Subsec. (c)(3). Pub. L. 102–558, § 121(b)(4), substituted
‘‘$50,000,000’’ for ‘‘$25,000,000’’.
Subsec. (c)(4). Pub. L. 102–558, § 121(b)(5), added par.
(4).

§ 2093

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

1984—Subsec. (a). Pub. L. 98–265, § 3(b), designated existing provision as subsec. (a) and struck out provision
that loans be made without regard to limitations of existing law on such terms and conditions as the President deems necessary, except that financial assistance
be extended only to the extent not available on reasonable terms, and that with respect to loans in excess of
$48,000,000, Congressional committees be notified and no
disapproving resolution be adopted within a 60-day period of continuous session of Congress, with provision
for determining continuity of Congressional session for
the purpose of computing such 60-day period. See subsec. (b).
Subsec. (b). Pub. L. 98–265, § 3(b)(2), added subsec. (b).
Subsec. (c). Pub. L. 98–265, § 4(b), added subsec. (c).
1980—Pub. L. 96–294 substituted ‘‘$48,000,000’’ for
‘‘$25,000,000’’.
1973—Pub. L. 93–155 provided for notification of Congressional Committees with respect to certain proposed
loans, Congressional resolution of disapproval, continuity of Congressional sessions, and computation of period.
1952—Act June 30, 1952, brought manufacture of newsprint within its provisions.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see section 304 of Pub. L.
102–558, set out as a note under section 2062 of this Appendix.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96–294 effective June 30, 1980,
see section 107 of Pub. L. 96–294, set out as a note under
section 2062 of this Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
DELEGATION OF FUNCTIONS
Functions of President under act Sept. 8, 1950 [section
2061 et seq. of this Appendix], relating to production,
conservation, use, control, distribution, and allocation
of energy, delegated to Secretary of Energy, see section
4 of Ex. Ord. No. 11790, June 25, 1974, 39 F.R. 23185, set
out as a note under section 761 of Title 15, Commerce
and Trade.
OBLIGATIONS ENTERED INTO BEFORE NOVEMBER 16, 1973
Amendment by Pub. L. 93–155 not affecting the carrying out of any contract, loan, guarantee, commitment,
or other obligation entered into prior to Nov. 16, 1973,
see section 807(e) of Pub. L. 93–155, set out as a note
under section 2307 of Title 10, Armed Forces.
EXECUTIVE ORDER NO. 10634
Ex. Ord. No. 10634, Aug. 31, 1955, 20 F.R. 6433, as
amended by Ex. Ord. No. 10773, July 1, 1958, 23 F.R. 5061;
Ex. Ord. No. 10782, Sept. 6, 1958, 23 F.R. 6971, which related to loans for facilities destroyed or damaged by
major disaster, was revoked by section 5–106 of Ex. Ord.
No. 12148, July 20, 1979, 44 F.R. 43243, set out as a note
under section 5195 of Title 42, The Public Health and
Welfare.
CROSS REFERENCES
Limitation on aggregate amount of loans, guarantees, etc., under this section, see section 2161 of this
Appendix.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2078, 2091, 2095,
2096, 2161 of this Appendix.

Page 232

§ 2093. Purchase of raw materials and installation of equipment
(a) Presidential provisions
(1) In general
To assist in carrying out the objectives of
this Act [sections 2061 to 2171 of this Appendix], the President may make provision—
(A) for purchases of or commitments to
purchase an industrial resource or a critical
technology item, for Government use or resale; and
(B) for the encouragement of exploration,
development, and mining of critical and
strategic materials, and other materials.
(2) Treatment of certain agricultural commodities
Purchases for resale under this subsection
shall not include that part of the supply of an
agricultural commodity which is domestically
produced, except to the extent that such domestically produced supply may be purchased
for resale for industrial use or stockpiling.
(3) Terms of sales
No commodity purchased under this subsection shall be sold at less than—
(A) the established ceiling price for such
commodity, except that minerals, metals,
and materials shall not be sold at less than
the established ceiling price, or the current
domestic market price, whichever is lower;
or
(B) if no ceiling price has been established,
the higher of—
(i) the current domestic market price for
such commodity; or
(ii) the minimum sale price established
for agricultural commodities owned or
controlled by the Commodity Credit Corporation, as provided in section 407 of the
Agricultural Act of 1949 [7 U.S.C. 1427].
(4) Delivery dates
No purchase or commitment to purchase any
imported agricultural commodity shall specify
a delivery date which is more than 1 year after
the expiration of this section.
(5) Presidential determinations
Except as provided in paragraph (7), the
President may not execute a contract under
this subsection unless the President determines that—
(A) the industrial resource or critical technology item is essential to the national defense;
(B) without Presidential action under the
authority provided for in this section,
United States industry cannot reasonably be
expected to provide the capability for the
needed industrial resource or critical technology item in a timely manner;
(C) purchases, purchase commitments, or
other action pursuant to this section are the
most cost-effective, expedient, and practical
alternative method for meeting the need;
and
(D) the combination of the United States
national defense demand and foreseeable
nondefense demand for the industrial re-

Page 233

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

source or critical technology item is not less
than the output of domestic industrial capability, as determined by the President, including the output to be established through
the purchase, purchase commitment, or
other action.
(6) Identification of shortfall
(A) In general
Except as provided in paragraph (7), the
President shall take no action under this
section unless the industrial resource shortfall which such action is intended to correct
has been identified in the Budget of the
United States, or amendments thereto, submitted to the Congress and accompanied by
a statement from the President demonstrating that the budget submission is in accordance with the provisions of paragraph (5).
(B) Timing of action
Any such action may be taken only after
60 days have elapsed after such industrial resource shortfall has been identified pursuant
to subparagraph (A).
(C) Limitation
If the taking of any action or actions
under this section to correct an industrial
resource shortfall would cause the aggregate
outstanding amount of all such actions for
such industrial resource shortfall to exceed
$50,000,000, any such action or actions may
be taken only if specifically authorized by
law.
(7) Waiver
The requirements of paragraphs (1) through
(6) may be waived—
(A) during periods of national emergency
declared by the Congress or the President; or
(B) upon a determination by the President,
on a nondelegable basis, that a specific guarantee is necessary to avert an industrial resource or critical technology shortfall that
would severely impair national defense capability.
(b) Terms and conditions of purchase
Subject to the limitations in subsection (a) of
this section, purchases and commitments to
purchase and sales under such subsection may
be made without regard to the limitations of existing law, for such quantities, and on such
terms and conditions, including advance payments, and for such periods, but not extending
beyond a date that is not more than 10 years
from the date such purchase, purchase commitment, or sale was initially made, as the President deems necessary, except that purchases or
commitments to purchase involving higher than
established ceiling prices (or if there be no established ceiling prices, currently prevailing
market prices) or anticipated loss on resale
shall not be made unless it is determined that
supply of the materials could not be effectively
increased at lower prices or on terms more favorable to the Government or that such purchases are necessary to assure the availability
to the United States of overseas supplies.
(c) Subsidy payments on domestically produced
materials; exclusion of agricultural products
If the President finds—

§ 2093

(1) that under generally fair and equitable
ceiling prices for any raw or nonprocessed material, there will result a decrease in supplies
from high-costs sources of such material, and
that the continuation of such supplies is necessary to carry out the objectives of the Act
[sections 2061 to 2171 of this Appendix]; or
(2) that an increase in cost of transportation
is temporary in character and threatens to impair maximum production or supply in any
area at stable prices of any materials;
he may make provision for subsidy payments on
any such domestically produced material other
than an agricultural commodity in such
amounts and in such manner (including purchases of such material and its resale at a loss
without regard to the limitations of existing
law), and on such terms and conditions, as he determines to be necessary to insure that supplies
from such high-cost sources are continued, or
that maximum production or supply in such
area at stable prices of such materials is maintained, as the case may be.
(d) Transportation, storage, and processing
The procurement power granted to the President by this section shall include the power to
transport and store and have processed and refined, any materials procured under this section.
(e) Installation of equipment in industrial facilities
When in his judgment it will aid the national
defense, the President is authorized to install
additional equipment, facilities, processes or
improvements to plants, factories, and other industrial facilities owned by the United States
Government, and to install government-owned
equipment in plants, factories, and other industrial facilities owned by private persons.
(f) Transfer of excess materials to national stockpile
Notwithstanding any other provision of law to
the contrary, metals, minerals, and materials
acquired pursuant to the provisions of this section which, in the judgment of the President,
are excess to the needs of programs under this
Act [sections 2061 to 2171 of this Appendix], shall
be transferred to the National Defense Stockpile
established by the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98 et seq.), when
the President deems such action to be in the
public interest. Transfers made pursuant to this
subsection shall be made without charge against
or reimbursement from funds appropriated for
the purposes of such Act, except that costs incident to such transfer other than acquisition
costs shall be paid or reimbursed from such
funds, and the acquisition costs of such metals,
minerals, and materials transferred shall be
deemed to be net losses incurred by the transferring agency and the notes payable issued to the
Secretary of the Treasury representing the
amounts thereof shall be canceled. Upon the
cancellation of any such notes the aggregate
amount of borrowing which may be outstanding
at any one time under section 304(b) 1 of this
Act, as amended [section 2094(b) of this Appen1 See

References in Text note below.

§ 2093

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

dix], shall be reduced in an amount equal to the
amount of any notes so canceled.
(g) Development of substitutes for strategic and
critical materials
When in his judgment it will aid the national
defense, the President may make provision for
the development of substitutes for strategic and
critical materials, critical components, critical
technology items, and other industrial resources.
(Sept. 8, 1950, ch. 932, title III, § 303, 64 Stat. 801;
July 31, 1951, ch. 275, title I, § 103(a), 65 Stat. 133;
June 30, 1953, ch. 171, §§ 5, 6, 67 Stat. 130; Aug. 9,
1955, ch. 655, § 3, 69 Stat. 580; June 29, 1956, ch.
474, § 2, 70 Stat. 408; Pub. L. 88–343, § 2, June 30,
1964, 78 Stat. 235; Pub. L. 92–325, § 1, June 30, 1972,
86 Stat. 390; Pub. L. 94–273, § 2(29), Apr. 21, 1976,
90 Stat. 376; Pub. L. 96–41, § 3(c), July 30, 1979, 93
Stat. 325; Pub. L. 96–294, title I, § 104(d), June 30,
1980, 94 Stat. 618; Pub. L. 98–265, §§ 3(c), 4(c), Apr.
17, 1984, 98 Stat. 150, 151; Pub. L. 102–558, title I,
§ 121(c), (d), Oct. 28, 1992, 106 Stat. 4204, 4206.)
REFERENCES IN TEXT
For expiration of this section, referred to in subsec.
(a)(4), see section 2166(a) of this Appendix.
The Strategic and Critical Materials Stock Piling
Act, referred to in subsec. (f), is act June 7, 1939, ch. 190,
as revised generally by Pub. L. 96–41, § 2, July 30, 1979,
93 Stat. 319, which is classified generally to subchapter
III (§ 98 et seq.) of chapter 5 of Title 50, War and National Defense. For complete classification of this Act
to the Code, see section 98 of Title 50 and Tables.
Section 304(b) of this Act, referred to in subsec. (f), is
classified to section 2094(b) of this Appendix, and was
repealed and a new subsec. (b) was enacted by Pub. L.
93–426, § 2, Sept. 30, 1974, 88 Stat. 1166, which does not relate to limiting aggregate amount of borrowing which
may be outstanding.

Page 234

seq.)’’ for ‘‘the national stockpile established pursuant
to the Act of June 7, 1939, as amended (50 U.S.C.
98–98h)’’ and ‘‘from funds appropriated for the purposes
of such Act’’ for ‘‘from funds available under such Act
of June 7, 1939, as amended’’.
1976—Subsec. (b). Pub. L. 94–273 substituted ‘‘September’’ for ‘‘June’’.
1972—Subsec. (b). Pub. L. 92–325 substituted ‘‘June 30,
1985’’ for ‘‘June 30, 1975’’.
1964—Subsec. (b). Pub. L. 88–343 substituted ‘‘June 30,
1975’’ for ‘‘June 30, 1965’’.
1956—Subsec. (b). Act June 29, 1956, substituted ‘‘June
30, 1965’’ for ‘‘June 30, 1963’’.
1955—Subsec. (g). Act Aug. 9, 1955, added subsec. (g).
1953—Subsec. (b). Act June 30, 1953, § 5, substituted
‘‘1963’’ for ‘‘1962’’.
Subsec. (f). Act June 30, 1953, § 6, added subsec. (f).
1951—Act July 31, 1951, amended section generally to
broaden authority under this section to include materials generally, to continue prohibition against resale
of domestic agricultural commodities except for industrial uses or stockpiling but eliminated it as to imported agricultural commodities, to provide that minerals and metals purchased under subsec. (a) may be
sold at less than the established ceiling price, but not
less than the current domestic market price, to limit
provision barring contracts calling for delivery more
than one year after the expiration of this section to imported agricultural commodities, to provide that purchases and commitments to purchase under subsec. (a)
may not be made for any period extending beyond June
30, 1952, and to provide for a differential subsidy.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see section 304 of Pub. L.
102–558, set out as a note under section 2062 of this Appendix.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96–294 effective June 30, 1980,
see section 107 of Pub. L. 96–294, set out as a note under
section 2062 of this Appendix.

AMENDMENTS

EFFECTIVE DATE OF 1955 AMENDMENT

1992—Subsec. (a). Pub. L. 102–558, § 121(c)(1), amended
subsec. (a) generally, substituting present provisions
for provisions relating to purchases for use or resale,
development of strategic minerals, metals, and materials, exclusion of certain agricultural commodities,
termination of purchase authority, Presidential action,
and identification of industrial resource shortfalls.
Subsec. (b). Pub. L. 102–558, § 121(c)(2), substituted ‘‘a
date that is not more than 10 years from the date such
purchase, purchase commitment, or sale was initially
made’’ for ‘‘September 30, 1995’’.
Subsec. (g). Pub. L. 102–558, § 121(d), inserted before
period at end ‘‘, critical components, critical technology items, and other industrial resources’’.
1984—Subsec. (a). Pub. L. 98–265, § 3(c), inserted provision requiring President, except during periods of national emergency, to make specific determinations before executing a contract under this subsection.
Pub. L. 98–265, § 4(c), inserted provision requiring
President, except during periods of national emergency, to identify industrial resource shortfall before
taking any action under this section.
1980—Subsec. (a). Pub. L. 96–294, § 104(d)(1), inserted
references to materials after metals wherever appearing.
Subsec. (b). Pub. L. 96–294, § 104(d)(2), substituted
‘‘1995’’ for ‘‘1985’’.
Subsec. (g). Pub. L. 96–294, § 104(d)(3), struck out provisions relating to certifications by Secretaries of Agriculture and Interior regarding short supply of a particular strategic or critical material.
1979—Subsec. (f). Pub. L. 96–41 substituted ‘‘the National Defense Stockpile established by the Strategic
and Critical Materials Stock Piling Act (50 U.S.C. 98 et

Amendment by act Aug. 9, 1955, effective as of close
of July 31, 1955, see section 11 of act Aug. 9, 1955, set out
as a note under section 2062 of this Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
DELEGATION OF FUNCTIONS
Functions of President under act Sept. 8, 1950 [section
2061 et seq. of this Appendix], relating to production,
conservation, use, control, distribution, and allocation
of energy, delegated to Secretary of Energy, see section
4 of Ex. Ord. No. 11790, June 25, 1974, 39 F.R. 23185, set
out as a note under section 761 of Title 15, Commerce
and Trade.
CLARIFICATION OF STOCKPILE STATUS OF CERTAIN
MATERIALS
For provisions that all materials purchased under
this section and held in the Defense Production Act inventory as of June 30, 1992, are transferred to the National Defense Stockpile, see section 3315 of Pub. L.
102–484, as amended, set out as a note under section 98c
of Title 50, War and National Defense.
EXECUTIVE ORDER NO. 10219
Ex. Ord. No. 10219, Feb. 28, 1951, 16 F.R. 1983, as
amended by Ex. Ord. No. 10461, June 17, 1953, 18 F.R.
3513; Ex. Ord. No. 10537, June 22, 1954, 19 F.R. 3807; Ex.
Ord. No. 10773, July 1, 1958, 23 F.R. 5061; Ex. Ord. No.
10782, Sept. 6, 1958, 23 F.R. 6971, which related to the responsibilities of Federal agencies with respect to trans-

Page 235

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

portation and storage, was superseded by Ex. Ord. No.
11051, Sept. 27, 1962, 27 F.R. 9683, formerly set out as a
note under section 2271 of this Appendix.
CROSS REFERENCES
Authorization of appropriations to carry out this section, see section 2161 of this Appendix.
Limitation on aggregate amount of loans, guarantees, etc., under this section, see section 2161 of this
Appendix.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2078, 2091, 2094,
2095, 2096, 2161 of this Appendix; title 50 section 98c.

§ 2094. Defense Production Act Fund
(a) Establishment of Fund
There is established in the Treasury of the
United States a separate fund to be known as
the Defense Production Act Fund (hereafter in
this section referred to as ‘‘the Fund’’).
(b) Moneys in Fund
There shall be credited to the Fund—
(1) all moneys appropriated for the Fund, as
authorized by section 711(c) 1; and
(2) all moneys received by the Fund on
transactions entered into pursuant to section
303 [section 2093 of this Appendix].
(c) Use of Fund
The Fund shall be available to carry out the
provisions and purposes of this title [sections
2091 to 2099a of this Appendix], subject to the
limitations set forth in this Act [sections 2061 to
2171 of this Appendix] and in appropriations
Acts.
(d) Duration of Fund
Moneys in the Fund shall remain available
until expended.
(e) Fund balance
The Fund balance at the close of each fiscal
year shall not exceed $400,000,000, excluding any
moneys appropriated to the Fund during that
fiscal year or obligated funds. If, at the close of
any fiscal year, the Fund balance exceeds
$400,000,000, the amount in excess of $400,000,000
shall be paid into the general fund of the Treasury.
(f) Fund manager
The President shall designate a Fund manager. The duties of the Fund manager shall include—
(1) determining the liability of the Fund in
accordance with subsection (g);
(2) ensuring the visibility and accountability
of transactions engaged in through the Fund;
and
(3) reporting to the Congress each year regarding activities of the Fund during the previous fiscal year.
(g) Liabilities against Fund
When any agreement entered into pursuant to
this title [sections 2091 to 2099a of this Appendix]
after December 31, 1991, imposes any contingent
liability upon the United States, such liability
shall be considered an obligation against the
Fund.
1 See

References in Text note below.

§ 2094

(Sept. 8, 1950, ch. 932, title III, § 304, 64 Stat. 802;
June 2, 1951, ch. 121, Ch. XI, 65 Stat. 61; July 31,
1951, ch. 275, title I, § 103(b), (c), 65 Stat. 134; Pub.
L. 86–560, § 2, June 30, 1960, 74 Stat. 282; Pub. L.
88–343, § 3, June 30, 1964, 78 Stat. 235; Pub. L.
93–426, § 2, Sept. 30, 1974, 88 Stat. 1166; Pub. L.
102–558, title I, § 122, Oct. 28, 1992, 106 Stat. 4206.)
REFERENCES IN TEXT
Section 711(c), referred to in subsec. (b)(1), was classified to section 2161(c) of this Appendix prior to repeal
by Pub. L. 104–64, § 3(2), Dec. 18, 1995, 109 Stat. 689.
AMENDMENTS
1992—Pub. L. 102–558 amended section generally. Prior
to amendment, section read as follows:
‘‘(a) For the purposes of sections 302 and 303, the
President is authorized to utilize such existing departments, agencies, officials, or corporations of the Government as he may deem appropriate, or to create new
agencies (other than corporations).
‘‘(b) The Secretary of the Treasury is authorized and
directed to cancel the outstanding balance of all unpaid
notes issued to the Secretary of the Treasury pursuant
to this section, together with interest accrued and unpaid on such notes.
‘‘(c) Any cash balance remaining on June 30, 1974, in
the borrowing authority previously authorized by this
section, and any funds thereafter received on transactions heretofore or hereafter entered into pursuant
to sections 302 and 303 shall be covered into the Treasury as miscellaneous receipts.’’
1974—Subsec. (b). Pub. L. 93–426 substituted provisions authorizing Secretary of the Treasury to cancel
outstanding balance of all unpaid notes issued to Secretary of the Treasury together with interest accrued
and unpaid on such notes, for provisions relating to
borrowing authority mechanism by which all program
operations under the Defense Production Act have been
financed since the initiation of the Act in 1950 with an
overall limit of $2.1 billion outstanding at any one time
and with provisions for payment of interest on the obligations.
Subsec. (c). Pub. L. 93–426 added subsec. (c). Former
subsec. (c) was repealed by act July 31, 1951, ch. 275,
title I, § 103(c), 65 Stat. 134.
1964—Subsec. (b). Pub. L. 88–343 provided that no new
purchases or commitments to purchase shall be made
or entered into after June 30, 1964, unless President
makes a finding that such new purchases or commitments are essential to national security, and that total
of such new purchases or commitments including contingent liabilities, could not exceed $100,000,000.
1960—Subsec. (b). Pub. L. 86–560 substituted ‘‘six
months’’ for ‘‘quarter’’.
1951—Subsec. (b). Act July 31, 1951, § 103(b), increased
revolving fund from $600,000,000 to $2,100,000,000, and
limited contingent liability of the United States.
Act June 2, 1951, increased aggregate of borrowing
from $600,000,000 to $1,600,000,000.
Subsec. (c). Act July 31, 1951, § 103(c), repealed subsec.
(c) which authorized $1,400,000,000 to be appropriated to
carry out sections 2092 and 2093 of this Appendix.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see section 304 of Pub. L.
102–558, set out as a note under section 2062 of this Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
DEFENSE PRODUCTION ACT FUND MANAGER
Secretary of Defense designated Defense Production
Act Fund Manager in accordance with subsec. (f) of this
section, see section 309 of Ex. Ord. No. 12919, June 3,

§ 2095

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

1994, 59 F.R. 29529, set out as a note under section 2153
of this Appendix.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 2093 of this Appendix.

§ 2095. Synthetic fuel production
(a) Immediate Presidential action to meet national defense needs; exercise of authorities;
United States Synthetic Fuel Corporation authority unaffected
(1)(A) Subject to subsection (k)(1), in order to
encourage and expedite the development of synthetic fuel for use for national defense purposes,
the President, utilizing the provisions of this
Act [sections 2061 to 2171 of this Appendix]
(other than sections 101(a), 101(b), 301, 302, 303,
and 306 [sections 2071(a), 2071(b), 2091, 2092, 2093,
and 2096 of this Appendix]), and any other applicable provision of law, shall take immediate action to achieve production of synthetic fuel to
meet national defense needs.
(B) The President shall exercise the authority
granted by this section—
(i) in consultation with the Secretary of Energy;
(ii) through the Department of Defense and
any other Federal department or agency designated by the President; and
(iii) consistent with an orderly transition to
the separate authorities established pursuant
to the United States Synthetic Fuels Corporation Act of 1980 [42 U.S.C. 8701 et seq.].
(2) This section shall not affect the authority
of the United States Synthetic Fuels Corporation.
(b) Specific Presidential authorities; requisites,
limitations, etc.
(1)(A) To assist in carrying out the objectives
of this section, the President, subject to subsections (c) and (d), shall—
(i) contract for purchases of, or commitments to purchase, synthetic fuel for Government use for defense needs;
(ii) subject to paragraph (3), issue guarantees in accordance with the provisions of section 301 [section 2091 of this Appendix], except
that the provisions of section 301(e)(1)(B) [section 2091(e)(1)(B) of this Appendix] shall not
apply with respect to such guarantees; and
(iii) subject to paragraph (3), make loans in
accordance with the provisions of section 302
[section 2092 of this Appendix], except that the
provisions of section 302(2) [section 2092(2) of
this Appendix] shall not apply with respect to
such loans.
(2)(A) Except as provided in subparagraph (B)
assistance authorized under this subsection may
be provided only to persons who are participating in a synthetic fuel project.
(B) For purposes of fabrication or manufacture
of any component of a synthetic fuel project, assistance authorized under paragraph (1)(A)(ii)
and paragraph (1)(A)(iii) may be provided to any
fabricator or manufacturer of such component.
(3) The President may not utilize the authority under paragraph (1) to provide any loan or
guarantee in accordance with the provisions of

Page 236

section 301 [section 2091 of this Appendix] or section 302 [section 2092 of this Appendix] in
amounts which exceed the limitations established in such sections unless the President submits to the Congress notification of the proposed loan or guarantee in the manner specified
under section 307 1 [section 2097 of this Appendix]
and such proposed action is either approved or
not disapproved by the Congress under such section. For purposes of section 307 1 [section 2097 of
this Appendix], any proposal pertaining to a proposed loan or guarantee, notice of which is
transmitted to the Congress under this paragraph, shall be considered to be a synthetic fuel
action.
(c) Purchases and commitments to purchase by
President; authority; limitations; advance
payments prior to construction of synthetic
fuel project
(1) Subject to paragraph (2), purchases and
commitments to purchase under subsection (b)
may be made—
(A) without regard to the limitations of existing law (other than the limitations contained in this Act [sections 2061 to 2171 of this
Appendix]) regarding the procurement of
goods or services by the Government; and
(B) subject to section 717(a) [section 2166(a)
of this Appendix], for such quantities, on such
terms and conditions (including advance payments subject to paragraph (3)), and for such
periods as the President deems necessary.
(2) Purchases or commitments to purchase
under subsection (b) involving higher than established ceiling prices (or if there are no established ceiling prices, currently prevailing market prices as determined by the Secretary of Energy) shall not be made unless it is determined
that supplies of synthetic fuel could not be effectively increased at lower prices or on terms
more favorable to the Government, or that such
commitments or purchases are necessary to assure the availability to the United States of supplies overseas for use for national defense purposes.
(3) Advance payments may not be made under
this section unless construction has begun on
the synthetic fuel project involved or the President determines that all conditions precedent to
construction have been met.
(d) Bidding and contracting procedures and requirements applicable to purchases and commitments to purchase
(1) Except as provided in paragraph (2), any
purchase of or commitment to purchase synthetic fuel under subsection (b) shall be made by
solicitation of sealed competitive bids.
(2) In any case in which no such bids are submitted to the President or the President determines that no such bids which have been submitted to the President are acceptable, the
President may negotiate contracts for such purchases and commitments to purchase.
(3) Any contract for such purchases or commitments to purchase shall provide that the
President has the right to refuse delivery of the
synthetic fuel involved and to pay the person in1 See

References in Text note below.

Page 237

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

volved an amount equal to the amount by which
the price for such synthetic fuel, as specified in
the contract involved, exceeds the market price,
as determined by the Secretary of Energy, for
such synthetic fuel on the delivery date specified in such contract.
(4)(A)(i) With respect to any person, including
any other person who is substantially controlled
by such person (as determined by the Secretary
of Energy), the President, subject to subparagraph (A)(ii), may not award contracts for the
purchase of or commitment to purchase more
than 100,000 barrels per day crude oil equivalent
of synthetic fuel.
(ii) With respect to any person, including any
other person who is substantially controlled by
such person (as determined by the Secretary of
Energy), the President may not award any contract for the purchase or commitment to purchase of more than 75,000 barrels per day crude
oil equivalent of synthetic fuel unless the President submits to the Congress notification of
such proposed contract or commitment in the
manner specified under section 307 2 [section 2097
of this Appendix] and such proposed action is either approved or not disapproved by the Congress under such section. For purposes of section
307 2 [section 2097 of this Appendix], any proposal
pertaining to such a proposed contract or commitment, notice of which is transmitted to the
Congress under this subparagraph, shall be considered to be a synthetic fuel action.
(B) A contract for the purchase of or commitment to purchase synthetic fuel may be entered
into only for synthetic fuel which is produced in
a synthetic fuel project which is located in the
United States.
(C) Each contract entered into under this section for the purchase of or commitment to purchase synthetic fuel shall provide that all parties to such contract agree to review and to possibly renegotiate such contract within 10 years
after the date of the initial production at the
synthetic fuel project involved. At the time of
such review, the President shall determine the
need for continued financial assistance pursuant
to such contract.
(5) In any case in which the President, under
the provisions of this section, accepts delivery
of any synthetic fuel, such synthetic fuel may
be used by an appropriate Federal agency. Such
Federal agency shall pay for such synthetic fuel
the prevailing market price for the product
which such synthetic fuel is replacing, as determined by the Secretary of Energy, from sums
appropriated to such Federal agency for the purchase of fuel, and the President shall pay, from
sums appropriated for such purpose pursuant to
the authorizations contained in sections
711(a)(2) and 711(a)(3) 2 [section 2161(a)(2) and
2161(a)(3) of this Appendix], an amount equal to
the amount by which the contract price for such
synthetic fuel as specified in the contract involved exceeds such prevailing market price.
(6) In considering any proposed contract under
this section, the President shall take into account the socioeconomic impacts on communities which would be affected by any new or expanded facilities required for the production of
the synthetic fuel under such contract.
2 See

References in Text note below.

§ 2095

(e) Scope of Presidential procurement power
The procurement power granted to the President under this section shall include the power
to transport and store and have processed and
refined any product procured under this section.
(f) Determinations necessary for purchase and
sale of synthetic fuel
(1) No authority contained in this section may
be exercised to acquire any amount of synthetic
fuel unless the President determines that such
synthetic fuel is needed to meet national defense needs and that it is not anticipated that
such synthetic fuel will be resold by the Government.
(2) In any case in which synthetic fuel is acquired by the Government under this section,
such synthetic fuel is no longer needed to meet
national defense needs, and such synthetic fuel
is not accepted by a Federal agency pursuant to
subsection (d)(5), the President shall offer such
synthetic fuel to the Secretary of Energy for
purposes of meeting the storage requirements of
the Strategic Petroleum Reserve.
(3) Any synthetic fuel which is acquired by the
Government under this section and which is not
used by the Government or accepted by the Secretary of Energy pursuant to paragraph (2) shall
be sold in accordance with applicable Federal
law.
(g) Maximum liability of Federal Government
under contracts; budgetary certifications
(1) Any contract under this section including
any amendment or other modification of such
contract, shall, subject to the availability of unencumbered appropriations in advance, specify
in dollars the maximum liability of the Federal
Government under such contract as determined
in accordance with paragraph (2).
(2) For the purpose of determining the maximum liability under any contract under paragraph (1)—
(A) loans shall be valued at the initial face
value of the loan;
(B) guarantees shall be valued at the initial
face value of such guarantee (including any
amount of interest which is guaranteed under
such guarantee);
(C) purchase agreements shall be valued as
of the date of each such contract based upon
the President’s estimate of the maximum liability under such contract; and
(D) any increase in the liability of the Government pursuant to any amendment or other
modification to a contract for a loan, guarantee, or purchase agreement shall be valued in
accordance with the applicable preceding subparagraph.
(3) If more than one form of assistance is provided under this section to any synthetic fuel
project, then the maximum liability under such
contract for purposes of paragraphs (1) and (2)
shall be valued at the maximum potential exposure on such project at any time during the life
of such project.
(4) Any such contract shall be accompanied by
a certification by the Director of the Office of
Management and Budget that the necessary appropriations have been made for the purpose of
such contract and are available. The remaining

§ 2095

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

available and unencumbered appropriations
shall equal the total aggregate appropriations
less the aggregate maximum liability of the
Federal Government under all contracts pursuant to this section.
(5) Any commitment made under this section
which is nullified or voided for any reason shall
not be considered in the aggregate maximum liability for the purposes of paragraph (4).
(h) Loan, guarantee, or purchase agreement not
to be deemed a major Federal action significantly affecting the quality of the human environment
For purposes of section 102(2)(C) of the National Environmental Policy Act of 1969 (42
U.S.C. 4332(2)(C)), no action in providing any
loan, guarantee, or purchase agreement under
this section shall be deemed to be a major Federal action significantly affecting the quality of
the human environment.
(i) Labor standards; applicability, certifications,
etc.
All laborers and mechanics employed for the
construction, repair, or alteration of any synthetic fuel project funded, in whole or in part,
by a guarantee or loan entered into pursuant to
this section 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
entitled ‘‘An Act relating to the rate of wages
for laborers and mechanics employed on public
buildings of the United States and the District
of Columbia by contractors and subcontractors,
and for other purposes’’, approved March 3, 1931
(40 U.S.C. 276a et seq.) and commonly known as
the Davis-Bacon Act. Guaranteeing agencies
shall not extend guarantees and the President
shall not make loans for the construction, repair or alteration of any synthetic fuel project
unless a certification is provided to the agency
or the President, as the case may be, prior to
the commencement of construction or at the
time of filing an application for a loan or guarantee, if construction has already commenced,
that these labor standards will be maintained at
the synthetic fuel project. With respect to the
labor standards specified in this subsection, the
Secretary of Labor shall have the authority and
functions set forth in Reorganization Plan Numbered 14 of 1950 and section 276(c) 3 of title 40 [40
U.S.C. 276c].
(j) Other jurisdictional, etc., authorities relating
to water resources and rights unaffected
(1) Nothing in this section shall—
(A) affect the jurisdiction of the States and
the United States over waters of any stream
or over any ground water resource;
(B) alter, amend, repeal, interpret, modify,
or be in conflict with any interstate compact
made by any States; or
(C) confer upon any non-Federal entity the
ability to exercise any Federal right to the
waters of any stream or to any ground water
resource.
(2) No synthetic fuel project constructed pursuant to the authorities of this section shall be
3 See

References in Text note below.

Page 238

considered to be a Federal project for purposes
of the application for or assignment of water
rights.
(k) Termination of contracting or commitment
authority of President; renewal or extension
of contracts
(1) Subject to paragraph (2), the authority of
the President to enter into any new contract or
commitment under this section shall cease to be
effective on the date on which the President determines that the United States Synthetic Fuels
Corporation is established and fully operational
consistent with the provisions of the United
States Synthetic Fuels Corporation Act of 1980
[42 U.S.C. 8701 et seq.].
(2) Contracts entered into under this section
before the date specified in paragraph (1) may be
renewed and extended by the President after the
date specified in paragraph (1) but only to the
extent that Congress has specifically appropriated funds for such renewals and extensions.
(Sept. 8, 1950, ch. 932, title III, § 305, as added
Pub. L. 96–294, title I, § 104(e), June 30, 1980, 94
Stat. 619.)
REFERENCES IN TEXT
The United States Synthetic Fuels Corporation Act
of 1980, referred to in subsecs. (a)(1)(B)(iii) and (k)(1), is
Pub. L. 96–294, title I, pt. B, June 30, 1980, 94 Stat. 633,
which was classified generally to chapter 95 (§ 8701 et
seq.) of Title 42, The Public Health and Welfare, and
was omitted from the Code. For complete classification
of this Act to the Code, see Tables.
Section 307, referred to in subsecs. (b)(3) and
(d)(4)(A)(ii), is classified to section 2097 of this Appendix and was amended by Pub. L. 102–558, title I, § 151,
Oct. 28, 1992, 106 Stat. 4218, and as so amended, provisions relating to congressional approval of synthetic
fuel action by the President were struck out.
Section 711, referred to in subsec. (d)(5), is classified
to section 2161 of this Appendix and was amended by
Pub. L. 102–558, title I, § 152, Oct. 28, 1992, 106 Stat. 4218,
repealing subsec. (a)(2) and redesignating subsec. (a)(3)
as subsec. (b). Subsec. (b) was subsequently repealed
and a new subsec. (b) added by Pub. L. 104–64, § 3(2), Dec.
18, 1995, 109 Stat. 689.
Act approved March 3, 1931 (40 U.S.C. 276a et seq.) and
commonly known as the Davis-Bacon Act, referred to
in subsec. (i), 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, Public Buildings, Property,
and Works. 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. (i), is set out in the Appendix to Title 5, Government Organization and Employees.
Section 276(c) of title 40, referred to in subsec. (i), was
repealed by Pub. L. 86–249, § 17(13)–(15), Sept. 9, 1959, 73
Stat. 485. Reference should probably be to section 276c
of Title 40, Public Buildings, Property, and Works.
EFFECTIVE DATE
Section effective June 30, 1980, see section 107 of Pub.
L. 96–294, set out as an Effective Date of 1980 Amendment note under section 2062 of this Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
TERMINATION OF UNITED STATES SYNTHETIC FUELS
CORPORATION
United States Synthetic Fuels Corporation terminated by Pub. L. 99–272, title VII, § 7403(b), Apr. 7, 1986,

Page 239

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

100 Stat. 144, set out as a note under section 8791 of
Title 42, The Public Health and Welfare.
EXECUTIVE ORDER NO. 12242
Ex. Ord. No. 12242, Sept. 30, 1980, 45 F.R. 65175, which
related to delegation and exercise of functions relating
to synthetic fuels, was revoked, except with respect to
any loan guarantee issued under the provisions of that
order, by Ex. Ord. No. 12346, § 4, Feb. 8, 1982, 47 F.R. 5993,
set out below.
EX. ORD. NO. 12346. TRANSITION OF SYNTHETIC FUEL RESPONSIBILITIES FROM DEPARTMENT OF ENERGY TO
UNITED STATES SYNTHETIC FUELS CORPORATION
Ex. Ord. No. 12346, Feb. 8, 1982, 47 F.R. 5993, provided:
By the authority vested in me as President by Section 305(k) of the Defense Production Act of 1950, as
amended (50 U.S.C. App. 2095(k)), and having determined that the United States Synthetic Fuels Corporation is established and fully operational consistent
with the provisions of the United States Synthetic
Fuels Corporation Act of 1980 (Public Law 96–294; 94
Stat. 633 et seq.) [42 U.S.C. 8701 et seq.], and to provide
for an orderly transition of synthetic fuel responsibilities from the Department of Energy to the United
States Synthetic Fuels Corporation, it is hereby ordered as follows:
SECTION 1. No new awards for purchases or commitments for financial assistance shall be made under the
provisions of Section 305 of the Defense Production Act
of 1950, as amended [this section].
SEC. 2. Synthetic fuels projects or actions initiated
by the Department of Energy shall, to the extent provided in the Supplemental Appropriations and Rescissions Act, 1980 (Public Law 96–304; 94 Stat. 880–881) [see
42 U.S.C. 5915 note], transfer to the Corporation upon a
majority vote of the Board of Directors of the Corporation, and unexpended balances of the funds obligated
for such projects shall be transferred to the Corporation to the extent such projects are transferred to the
Corporation.
SEC. 3. The balance of the amounts not committed or
not conditionally committed by the Department of Energy which were appropriated by Public Law 96–304 and
Public Law 96–126 [see 42 U.S.C. 5915 note] from the Energy Security Reserve to the Department of Energy are
available as provided in the Supplemental Appropriations and Rescissions Act, 1981 (Public Law 97–12; 95
Stat. 48) [see 42 U.S.C. 5915 note], to carry out the provisions of Title I of the Energy Security Act (Public
Law 96–294; 94 Stat. 616 et seq.) [which enacted sections
2075, 2076, and 2095 to 2098 of this Appendix and section
8701 et seq. of Title 42, The Public Health and Welfare,
amended sections 2062, 2091 to 2093, 2151, 2161, and 2166
of this Appendix, and enacted provisions set out as
notes under sections 2061 and 2062 of this Appendix and
section 8701 of Title 42].
SEC. 4. Executive Order No. 12242 of September 30, 1980
is revoked.
SEC. 5. Notwithstanding the revocation of Executive
Order No. 12242, the provisions of that Order shall continue in full force and effect with respect to any loan
guarantee issued under the provisions of that Order.
RONALD REAGAN.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2076, 2091, 2096,
2096a, 2098, 2161 of this Appendix.

§ 2096. Synthetic fuel production subsequent to
determinations respecting a national energy
supply shortage of defense fuels
(a) Invocation of authorities; judicial review
prohibited
(a)(1) At any time after the date of the enactment of this section [June 30, 1980], the President may, subject to paragraph (2), invoke the

§ 2096

authorities provided under this section upon
making all the following determinations and
transmitting a report to the Congress regarding
such determinations:
(A) a national energy supply shortage has resulted or is likely to result in a shortfall of petroleum supplies in the United States, and
such shortage is expected to persist for a period of time sufficient to seriously threaten
the adequacy of defense fuel supplies essential
to direct defense and direct defense industrial
base programs;
(B) the continued adequacy of such supplies
cannot be assured and requires expedited production of synthetic fuel to provide such defense fuel supplies;
(C) the expedited production of synthetic
fuel to provide such defense fuel supplies will
not be accomplished in a timely manner by
the United States Synthetic Fuels Corporation; and
(D) the exercise of the authorities provided
under subsection (c) is necessary to provide for
the expedited production of synthetic fuel to
provide such defense fuel supplies.
(2)(A) Any transmittal under paragraph (1)
shall contain a determination by the President
regarding the extent of the anticipated shortage
of petroleum supplies. If the President determines that such shortage is greater than 25 percent, the authorities invoked by the President
under this section shall be effective on the date
on which the report required under paragraph (1)
is transmitted to the Congress.
(B) If the President determines that such
shortage is less than 25 percent, the transmittal
under paragraph (1) shall be made in accordance
with section 307 1 [section 2097 of this Appendix]
and the authorities under this section shall be
effective only as provided under such section.
For purposes of section 307 1 [section 2097 of this
Appendix], any determination to invoke authorities under this section, notice of which is
transmitted to the Congress under this subsection, shall be considered to be a synthetic
fuel action.
(3) No court shall have the authority to review
any determination made by the President under
this subsection.
(b) Immediate Presidential action to meet national defense needs; exercise of authorities;
United States Synthetic Fuels Corporation
authority unaffected
(1)(A) Subject to the requirements of subsection (a), in order to encourage and expedite
the development of synthetic fuel for use for national defense purposes, the President, utilizing
the provisions of this Act [sections 2061 to 2171
of this Appendix] (other than sections 101(a),
101(b), 301, 302, 303, and 305 [sections 2071(a),
2071(b), 2091, 2092, 2093, and 2095 of this Appendix]), and any other applicable provision of law,
shall take immediate action to achieve production of synthetic fuel to meet national defense
needs.
(B) The President shall exercise the authority
granted by this section—
(i) in consultation with the Secretary of Energy; and
1 See

References in Text note below.

§ 2096

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

(ii) through the Department of Defense and
any other Federal department or agency designated by the President.
(2) This section shall not affect the authority
of the United States Synthetic Fuels Corporation.
(c) Specific Presidential authorities; requisites,
limitations, etc.
(1)(A) To assist in carrying out the objectives
of this section, the President, subject to subsections (d) and (e), shall—
(i) contract for purchases of or commitments
to purchase synthetic fuel for Government use
for defense needs;
(ii) subject to paragraph (4), issue guarantees in accordance with the provisions of section 301 [section 2091 of this Appendix], except
that the provisions of section 301(e)(1)(B) [section 2091(e)(1)(B) of this Appendix] shall not
apply with respect to such guarantees;
(iii) subject to paragraph (4), make loans in
accordance with the provisions of section 302
[section 2092 of this Appendix], except that the
provisions of section 302(2) [section 2092(2) of
this Appendix] shall not apply with respect to
such loans;
(iv) have the authority to require fuel suppliers to provide synthetic fuel in any case in
which the President deems it practicable and
necessary to meet the national defense needs
of the United States. Nothing in this paragraph shall be intended to provide authority
for the President to require fuel suppliers to
produce synthetic fuel if such suppliers are
not already producing synthetic fuel or do not
intend to produce synthetic fuel;
(v) have the authority to install additional
equipment, facilities, processes, or improvements to plants, factories, and other industrial facilities owned by the Government, and
to install Government-owned equipment in
plants, factories, and other industrial facilities owned by private persons; and
(vi) have the authority to undertake Government synthetic fuel projects in accordance
with the provisions of paragraph (2).
(B)(i) Except as provided in clause (ii), assistance authorized under this subsection may be
provided only to persons who are participating
in a synthetic fuel project.
(ii) For purposes of fabrication or manufacture
of any component of a synthetic fuel project, assistance authorized under paragraph (1)(A)(ii)
and paragraph (1)(A)(iii) may be provided to any
fabricator or manufacturer of such component.
(2)(A) The Government, acting through the
President, is authorized to own Government
synthetic fuel projects. In any case in which the
Government owns a Government synthetic fuel
project, the Government shall contract for the
construction and operation of such project.
(B) The authority of the Government pursuant
to subparagraph (A) to own and contract for the
construction and operation of any Government
synthetic fuel project shall include, among
other things, the authority to—
(i) subject to subparagraph (C), take delivery
of synthetic fuel from such project; and
(ii) transport and store and have processed
and refined such synthetic fuel.

Page 240

(C) Any synthetic fuel which the Government
takes delivery of from a Government synthetic
fuel project shall be disposed of in accordance
with subsection (g).
(D) To the maximum extent feasible, the
President shall utilize the private sector for the
activities associated with this paragraph.
(3)(A) Except as provided in subparagraph (B),
any contract for the construction or operation
of a Government synthetic fuel project shall be
made by solicitation of sealed competitive bids.
(B) In any case in which no such bids are submitted to the President or the President determines that no such bids have been submitted
which are acceptable to the President, the President may negotiate contracts for such construction and operation.
(4) The President may not utilize the authority under paragraph (1) to provide any loan or
guarantee in accordance with the provisions of
section 301 [section 2091 of this Appendix] or section 302 [section 2092 of this Appendix] in
amounts which exceed the limitations established in such sections unless the President submits to the Congress notification of the proposed loan or guarantee in the manner specified
under section 307 2 [section 2097 of this Appendix]
and such proposed action is either approved or
not disapproved by the Congress under such section. For purposes of section 307 2 [section 2097 of
this Appendix], any proposal pertaining to a proposed loan or guarantee, notice of which is
transmitted to the Congress under this paragraph, shall be considered to be a synthetic fuel
action.
(5) Before the President may utilize any specific authority described under paragraph (1),
the President shall transmit to the Congress a
statement containing a certification that the
determinations made by the President in the
transmittal to the Congress under subsection
(a)(1) are still valid at the time of the transmittal of such certification.
(6)(A) No authority contained in paragraphs
(1)(A)(i) through (1)(A)(iv) may be utilized by the
President unless the use of such authority has
been authorized by the Congress in an Act hereinafter enacted by the Congress.
(B) The President may not utilize any authority under paragraph (1)(A)(v) or paragraph
(1)(A)(vi) unless the proposed exercise of authority has been specifically authorized on a projectby-project basis in an Act hereinafter enacted
by the Congress and funds have been specifically
appropriated by the Congress for purposes of exercising such authority.
(d) Purchases and commitments to purchase by
President; authority; limitations; advance
payments prior to construction of synthetic
fuel project
(1) Subject to paragraph (2), purchases and
commitments to purchase under subsection (c)
may be made—
(A) without regard to the limitations of existing law (other than those limitations contained in this Act [sections 2061 to 2171 of this
Appendix]) regarding the procurement of
goods or services by the Government; and
2 See

References in Text note below.

Page 241

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

(B) subject to section 717(a) [section 2166(a)
of this Appendix], for such quantities, on such
terms and conditions (including advance payments subject to paragraph (3)), and for such
periods as the President deems necessary.
(2) Purchases or commitments to purchase
under subsection (c) involving higher than established ceiling prices (or if there are no established ceiling prices, currently prevailing market prices as determined by the Secretary of Energy) shall not be made unless it is determined
that supplies of synthetic fuel could not be effectively increased at lower prices or on terms
more favorable to the Government, or that such
commitments or purchases are necessary to assure the availability to the United States of supplies overseas for use for national defense purposes.
(3) Advance payments may not be made under
this section unless construction has begun on
the synthetic fuel project involved or the President determines that all conditions precedent to
construction have been met.
(e) Bidding and contracting procedures and requirements applicable to purchases and commitments to purchase
(1) Except as provided in paragraph (2), any
purchase or commitment to purchase synthetic
fuel under subsection (c) shall be made by solicitation of sealed competitive bids.
(2) In any case in which no such bids are submitted to the President or the President determines that no such bids which have been submitted to the President are acceptable, the
President may negotiate contracts for such purchases and commitments to purchase.
(3) Any contract for such purchases or commitments to purchase shall provide that the
President has the right to refuse delivery of the
synthetic fuel involved and to pay the person involved an amount equal to the amount by which
the price for such synthetic fuel, as specified in
the contract involved, exceeds the market price,
as determined by the Secretary of Energy, for
such synthetic fuel on the delivery date specified in such contract.
(4)(A) With respect to any person, including
any other person who is substantially controlled
by such person (as determined by the Secretary
of Energy), the President, subject to subparagraph (B), may not award contracts for the purchase of or commitment to purchase more than
100,000 barrels per day crude oil equivalent of
synthetic fuel.
(B) With respect to any person, including any
other person who is substantially controlled by
such person (as determined by the Secretary of
Energy), the President may not award any contract for the purchase of or commitment to purchase more than 75,000 barrels per day crude oil
equivalent of synthetic fuel unless the President
submits to the Congress notification of such
proposed contract or commitment in the manner specified under section 307 3 [section 2097 of
this Appendix] and such proposed action is either approved or not disapproved by the Congress under such section. For purposes of section
307 3 [section 2097 of this Appendix], any proposal
3 See

References in Text note below.

§ 2096

pertaining to such a proposed contract or commitment, notice of which is transmitted to the
Congress under this subparagraph, shall be considered to be a synthetic fuel action.
(5) A contract for the purchase of or commitment to purchase synthetic fuel may be entered
into only for synthetic fuel which is produced in
a synthetic fuel project which is located in the
United States.
(6) Each contract entered into under this section for the purchase of or commitment to purchase synthetic fuel shall provide that all parties to such contract agree to review and to possibly renegotiate such contract within 10 years
after the date of the initial production at the
synthetic fuel project involved. At the time of
such review, the President shall determine the
need for continued financial assistance pursuant
to such contract.
(7) In any case in which the President, under
the provisions of this section, accepts delivery
of any synthetic fuel, such synthetic fuel may
be used by an appropriate Federal agency. Such
Federal agency shall pay for such synthetic fuel
the prevailing market price for the product
which such synthetic fuel is replacing, as determined by the Secretary of Energy, from sums
appropriated to such Federal agency for the purchase of fuel, and the President shall pay, from
sums appropriated for such purpose, an amount
equal to the amount by which the contract price
for such synthetic fuel as specified in the contract involved exceeds such prevailing market
price.
(8) In considering any proposed contract under
this section, the President shall take into account the socioeconomic impacts on communities which would be affected by any new or expanded facilities required for the production of
the synthetic fuel under such contract.
(f) Scope of Presidential procurement power
The procurement power granted to the President under this section shall include the power
to transport and store and have processed and
refined any product procured under this section.
(g) Determinations respecting purchase and sale
of synthetic fuel
(1) No authority contained in this section may
be exercised to acquire any amount of synthetic
fuel unless the President determines that such
synthetic fuel is needed to meet national defense needs and that it is not anticipated that
such synthetic fuel will be resold by the Government.
(2) In any case in which synthetic fuel is acquired by the Government under this section,
such synthetic fuel is no longer needed to meet
national defense needs, and such synthetic fuel
is not accepted by a Federal agency pursuant to
subsection (e)(7), the President shall offer such
synthetic fuel to the Secretary of Energy for
purposes of meeting the storage requirements of
the Strategic Petroleum Reserve.
(3) Any synthetic fuel which is acquired by the
Government under this section and which is not
used by the Government or accepted by the Secretary of Energy pursuant to paragraph (2), shall
be sold in accordance with applicable Federal
law.

§ 2096

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

(h) Maximum liability of Federal Government
under contracts; budgetary certifications
(1) Any contract under this section, including
any amendment or other modification of such
contract, shall, subject to the availability of unencumbered appropriations in advance, specify
in dollars the maximum liability of the Federal
Government under such contract as determined
in accordance with paragraph (2).
(2) For the purpose of determining the maximum liability under any contract under paragraph (1)—
(A) loans shall be valued at the initial face
value of the loan;
(B) guarantees shall be valued at the initial
face value of such guarantee (including any
amount of interest which is guaranteed under
such guarantee);
(C) purchase agreements shall be valued as
of the date of each such contract based upon
the President’s estimate of the maximum liability under such contract;
(D) contracts for activities under subsection
(c)(1)(A)(v) shall be valued at the initial face
value of such contract;
(E) Government synthetic fuel projects pursuant to subsection (c)(1)(A)(vi) shall be valued at the current estimated cost to the Government, as determined annually by the President; and
(F) any increase in the liability of the Government pursuant to any amendment or other
modification to a contract for a loan, guarantee, purchase agreement, contract for activities under subsection (c)(1)(A)(v), or Government synthetic fuel project pursuant to subsection (c)(1)(A)(vi) shall be valued in accordance with the applicable preceding subparagraph.
(3) If more than one form of assistance is provided under this section to any synthetic fuel
project then the maximum liability under such
contract for purposes of paragraphs (1) and (2)
shall be valued at the maximum potential exposure on such project at any time during the life
of such project.
(4) Any such contract shall be accompanied by
a certification by the Director of the Office of
Management and Budget that the necessary appropriations have been made for the purpose of
such contract and are available. The remaining
available and unencumbered appropriations
shall equal the total aggregate appropriations
less the aggregate maximum liability of the
Federal Government under all contracts pursuant to this section.
(5) Any commitment made under this section
which is nullified or voided for any reason shall
not be considered in the aggregate maximum liability for the purposes of paragraph (4).
(i) Loan, guarantee, or purchase not to be
deemed a major Federal action significantly
affecting the quality of the human environment
For purposes of section 102(2)(C) of the National Environmental Policy Act of 1969 (42
U.S.C. 4332(2)(C)), no action in providing any
loan, guarantee, or purchase agreement under
this section, shall be deemed to be a major Federal action significantly affecting the quality of
the human environment.

Page 242

(j) Labor standards; applicability, certifications,
etc.
All laborers and mechanics employed for the
construction, repair, or alteration of any synthetic fuel project funded, in whole or in part,
by a guarantee or loan entered into pursuant to
this section 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
entitled ‘‘An Act relating to the rate of wages
for laborers and mechanics employed on public
buildings of the United States and the District
of Columbia by contractors and subcontractors
and for other purposes’’, approved March 3, 1931
(40 U.S.C. 276a et seq.) and commonly known as
the Davis-Bacon Act. Guaranteeing agencies
shall not extend guarantees and the President
shall not make loans for the construction, repair or alteration of any synthetic fuel project
unless a certification is provided to the agency
or the President, as the case may be, prior to
the commencement of construction or at the
time of filing an application for a loan or guarantee, if construction has already commenced,
that these labor standards will be maintained at
the synthetic fuel project. With respect to the
labor standards specified in this subsection, the
Secretary of Labor shall have the authority and
functions set forth in Reorganization Plan Numbered 14 of 1950 and section 276(c) 4 of title 40 [40
U.S.C. 276c].
(k) Other jurisdictional, etc., authorities relating
to water resources and rights unaffected
(1) Nothing in this section shall—
(A) affect the jurisdiction of the States and
the United States over waters of any stream
or over any ground water resource;
(B) alter, amend, repeal, interpret, modify,
or be in conflict with any interstate compact
made by any States; or
(C) confer upon any non-Federal entity the
ability to exercise any Federal right to the
waters of any stream or to any ground water
resource.
(2) No synthetic fuel project constructed pursuant to the authorities of this section shall be
considered to be a Federal project for purposes
of the application for or assignment of water
rights.
(l) Renewals and extensions of contracts
Renewals and extensions of contracts entered
into under this section shall be made only to the
extent that Congress has specifically appropriated funds for such renewals and extensions,
unless the President certifies that the determinations under section 306(a)(1) [subsec. (a)(1)
of this section] remain in effect for purposes of
the use of such authority.
(Sept. 8, 1950, ch. 932, title III, § 306, as added
Pub. L. 96–294, title I, § 104(e), June 30, 1980, 94
Stat. 623.)
REFERENCES IN TEXT
Section 307, referred to in subsecs. (a)(2)(B), (c)(4),
and (e)(4)(B), is classified to section 2097 of this Appendix and was amended by Pub. L. 102–558, title I, § 151,
4 See

References in Text note below.

Page 243

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

Oct. 28, 1992, 106 Stat. 4218, and as so amended, provisions relating to congressional approval of synthetic
fuel action by the President were struck out.
Act approved March 3, 1931 (40 U.S.C. 276a et seq.) and
commonly known as the Davis-Bacon Act, referred to
in subsec. (j), 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, Public Buildings, Property,
and Works. 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. (j), is set out in the Appendix to Title 5, Government Organization and Employees.
Section 276(c) of title 40, referred to in subsec. (j), was
repealed by Pub. L. 86–249, § 17(13) to (15), Sept. 9, 1959,
73 Stat. 485. Reference should probably be to section
276c of Title 40, Public Buildings, Property, and Works.
EFFECTIVE DATE
Section effective June 30, 1980, see section 107 of Pub.
L. 96–294, set out as an Effective Date of 1980 Amendment note under section 2062 of this Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
TERMINATION OF UNITED STATES SYNTHETIC FUELS
CORPORATION
United States Synthetic Fuels Corporation terminated by Pub. L. 99–272, title VII, § 7403(b), Apr. 7, 1986,
100 Stat. 144, set out as a note under section 8791 of
Title 42, The Public Health and Welfare.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2076, 2091, 2095,
2096a, 2098, 2161 of this Appendix.

§ 2096a. Annual reports on synthetic fuel production
Beginning one year after the effective date of
this part [June 30, 1980], and annually thereafter, the President shall submit a report to the
Congress on actions taken under sections 305
and 306 of the Defense Production Act of 1950
[sections 2095 and 2096 of this Appendix].

§ 2098

Stat. 628; amended Pub. L. 102–558, title I, § 151,
Oct. 28, 1992, 106 Stat. 4218.)
AMENDMENTS
1992—Subsec. (b). Pub. L. 102–558, § 151(1), struck out
after first sentence ‘‘If both Houses are not in session
on the day on which any synthetic fuel action is received by the appropriate officers of each House, such
synthetic fuel action shall be deemed to have been received on the first succeeding day on which both
Houses are in session.’’
Subsecs. (c) to (g). Pub. L. 102–558, § 151(2), struck out
subsec. (c) relating to effective date of synthetic fuel
action, resolution of disfavor, and earlier effective
date; subsec. (d) relating to congressional sessions for
purposes of effective date; subsec. (e) relating to later
effective date of synthetic fuel action; subsec. (f) relating to construction and applicability of procedures
with rules of each House; and subsec. (g) relating to
procedures applicable to resolutions of approval and
disapproval.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see section 304 of Pub. L.
102–558, set out as a note under section 2062 of this Appendix.
EFFECTIVE DATE
Section effective June 30, 1980, see section 107 of Pub.
L. 96–294, set out as an Effective Date of 1980 Amendment note under section 2062 of this Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2095, 2096 of this
Appendix.

§ 2098. Definitions

(a) ‘‘Synthetic fuel action’’ defined
For purposes of this section, the term ‘‘synthetic fuel action’’ means any matter required
to be transmitted, or submitted to the Congress
in accordance with the procedures of this section.
(b) Submission to Congress by President
The President shall transmit any synthetic
fuel action (bearing an identification number) to
both Houses of the Congress on the same day.

(a) For purposes of this Act [sections 2061 to
2171 of this Appendix], the term ‘‘Government
synthetic fuel project’’ means a synthetic fuel
project undertaken in accordance with the provisions of section 306(c) [section 2096(c) of this
Appendix].
(b)(1)(A) For purposes of this Act [sections 2061
to 2171 of this Appendix], the term ‘‘synthetic
fuel’’ means any solid, liquid, or gas, or combination thereof, which can be used as a substitute
for petroleum or natural gas (or any derivatives
thereof, including chemical feedstocks) and
which is produced by chemical or physical transformation (other than washing, coking, or desulfurizing) of domestic sources of—
(i) coal, including lignite and peat;
(ii) shale;
(iii) tar sands, including those heavy oil resources where—
(I) the cost and the technical and economic risks make extraction and processing
of a heavy oil resource uneconomical under
applicable pricing and tax policies; and
(II) the costs and risks are comparable to
those associated with shale, coal, and tar
sand resources (other than heavy oil) qualifying for assistance under section 305 [section 2095 of this Appendix] or section 306
[section 2096 of this Appendix]; and

(Sept. 8, 1950, ch. 932, title III, § 307, as added
Pub. L. 96–294, title I, § 104(e), June 30, 1980, 94

(iv) water, as a source of hydrogen only
through electrolysis.

(Pub. L. 96–294, title I, § 106, June 30, 1980, 94
Stat. 633.)
CODIFICATION
Section was enacted as part of the Energy Security
Act, and not as part of the Defense Production Act of
1950 which comprises sections 2061 to 2171 of this Appendix.
EFFECTIVE DATE
Section effective June 30, 1980, see section 107 of Pub.
L. 96–294, set out as an Effective Date of 1980 Amendment note under section 2062 of this Appendix.

§ 2097. Synthetic fuel action

§ 2099

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

(B) Such term includes mixtures of coal and
combustible liquids, including petroleum.
(C) Such term does not include solids, liquids,
or gases, or combinations thereof, derived from
biomass, which includes timber, animal and timber waste, municipal and industrial waste, sewage, sludge, oceanic and terrestrial plants, and
other organic matter.
(2)(A) For purposes of this Act [sections 2061 to
2171 of this Appendix], the term ‘‘synthetic fuel
project’’ means any facility using an integrated
process or processes at a specific geographic location in the United States for the purpose of
commercial production of synthetic fuel. The
project may include only—
(i) the facility, including the equipment,
plant, machinery, supplies, and other materials associated with the facility, which converts the domestic resource to synthetic fuel;
(ii) the land and mineral rights required directly for use in connection with the facilities
for the production of synthetic fuels;
(iii) any facility or equipment to be used in
the extraction of a mineral for use directly
and exclusively in such conversion;
(I) which—
(aa) is co-located with the conversion facility or is located in the immediate vicinity of the conversion facility; or
(bb) if not co-located or located in the
immediate vicinity, is incidental to the
project (except in the event of a coal mine
where no other reasonable source of coal is
available to the project); and
(II) which is necessary to the project; and
(iv) any transportation facility, electric
powerplant, electric transmission line or other
facility—
(I) which is for the exclusive use of the
project;
(II) which is incidental to the project; and
(III) which is necessary to the project, except that transportation facilities used to
transport synthetic fuel away from the project shall be used exclusively to transport
synthetic fuel to a storage facility or pipeline connecting to an existing pipeline or
processing facility or area within close proximity of the project.
(B)(i) Such term may also include a project
which will result in the replacement of a significant amount of oil and is—
(I) used solely for the production of a mixture of coal and combustible liquids, including
petroleum, for direct use as a fuel, but shall
not include—
(aa) any mineral right; or
(bb) any facility or equipment for extraction of any mineral;
(II) used solely for the commercial production of hydrogen from water through electrolysis; and
(III) a magnetohydrodynamic topping cycle
used solely for the commercial production of
electricity.
(ii) Such a synthetic fuel project using
magnetohydrodynamic technology shall only be
eligible for guarantees under section 305 [section
2095 of this Appendix] or section 306 [section 2096
of this Appendix].

Page 244

(C) For purposes of this paragraph—
(i) the term ‘‘exclusive’’ means for the sole
use of the project, except that an incidental
by-product might be used for other purposes;
(ii) the term ‘‘incidental’’ means a relatively
small portion of the total project cost; and
(iii) the term ‘‘necessary’’ means an integrated part of the project taking into account
considerations of economy and efficiency of
operation.
(c) For purposes of section 305 [section 2095 of
this Appendix] and section 306 [section 2096 of
this Appendix], the term ‘‘United States’’ means
the several States, the District of Columbia, the
Commonwealth of Puerto Rico, Guam, the Virgin Islands, the Northern Mariana Islands, the
Trust Territory of the Pacific Islands, and any
other territory or possession of the United
States.
(Sept. 8, 1950, ch. 932, title III, § 308, as added
Pub. L. 96–294, title I, § 104(e), June 30, 1980, 94
Stat. 631.)
EFFECTIVE DATE
Section effective June 30, 1980, see section 107 of Pub.
L. 96–294, set out as an Effective Date of 1980 Amendment note under section 2062 of this Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
TERMINATION OF TRUST TERRITORY OF THE PACIFIC
ISLANDS
For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title
48, Territories and Insular Possessions.

§ 2099. Annual report on impact of offsets
(a) Annual report on impact of offsets
(1) Report required
Not later than 18 months after April 17, 1984,
and annually thereafter, the President shall
submit to the Committee on Banking, Finance
and Urban Affairs of the House of Representatives and the Committee on Banking, Housing,
and Urban Affairs of the Senate, a detailed report on the impact of offsets on the defense
preparedness, industrial competitiveness, employment, and trade of the United States.
(2) Duties of the Secretary of Commerce
The Secretary of Commerce (hereafter in
this subsection referred to as ‘‘the Secretary’’)
shall—
(A) prepare the report required by paragraph (1);
(B) consult with the Secretary of Defense,
the Secretary of the Treasury, the Secretary
of State, and the United States Trade Representative in connection with the preparation of such report; and
(C) function as the President’s Executive
Agent for carrying out this section.
(b) Interagency studies and related data
(1) Purpose of report
Each report required under subsection (a)
shall identify the cumulative effects of offset
agreements on—

Page 245

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

(A) the full range of domestic defense productive capability (with special attention
paid to the firms serving as lower-tier subcontractors or suppliers); and
(B) the domestic defense technology base
as a consequence of the technology transfers
associated with such offset agreements.
(2) Use of data
Data developed or compiled by any agency
while conducting any interagency study or
other independent study or analysis shall be
made available to the Secretary to facilitate
the execution of the Secretary’s responsibilities with respect to trade offset and countertrade policy development.
(c) Notice of offset agreements
(1) In general
If a United States firm enters into a contract for the sale of a weapon system or defense-related item to a foreign country or foreign firm and such contract is subject to an
offset agreement exceeding $5,000,000 in value,
such firm shall furnish to the official designated in the regulations promulgated pursuant to paragraph (2) information concerning
such sale.
(2) Regulations
The information to be furnished under paragraph (1) shall be prescribed in regulations
promulgated by the Secretary. Such regulations shall provide protection from public disclosure for such information, unless public disclosure is subsequently specifically authorized
by the firm furnishing the information.
(d) Contents of report
(1) In general
Each report under subsection (a) shall include—
(A) a net assessment of the elements of the
industrial base and technology base covered
by the report;
(B) recommendations for appropriate remedial action under the authority of this
Act [sections 2061 to 2171 of this Appendix],
or other law or regulations;
(C) a summary of the findings and recommendations of any interagency studies conducted during the reporting period under
subsection (b);
(D) a summary of offset arrangements concluded during the reporting period for which
information has been furnished pursuant to
subsection (c); and
(E) a summary and analysis of any bilateral and multilateral negotiations relating
to the use of offsets completed during the reporting period.
(2) Alternative findings or recommendations
Each report required under this section shall
include any alternative findings or recommendations offered by any departmental Secretary, agency head, or the United States
Trade Representative to the Secretary.
(e) Utilization of annual report in negotiations
The findings and recommendations of the reports required by subsection (a), and any inter-

§ 2099

agency reports and analyses shall be considered
by representatives of the United States during
bilateral and multilateral negotiations to minimize the adverse effects of offsets.
(Sept. 8, 1950, ch. 932, title III, § 309, as added
Pub. L. 98–265, § 6, Apr. 17, 1984, 98 Stat. 152;
amended Pub. L. 99–441, § 4, Oct. 3, 1986, 100 Stat.
1117; Pub. L. 102–558, title I, § 124, Oct. 28, 1992,
106 Stat. 4207.)
AMENDMENTS
1992—Subsec. (a). Pub. L. 102–558, § 124(1), inserted
heading, designated existing provisions as par. (1),
struck after first sentence ‘‘Each such report also shall
include a discussion of bilateral and multilateral negotiations on offsets in international procurement and
provide information on the types, terms, and magnitude of the offsets.’’, and added par. (2).
Subsec. (b). Pub. L. 102–558, § 124(2), amended subsec.
(b) generally, substituting present provisions for provisions delineating the scope and contents of reports
based on interagency studies.
Subsecs. (c) to (e). Pub. L. 102–558, § 124(3), added subsecs. (c) to (e).
1986—Pub. L. 99–441 designated existing provisions as
subsec. (a), inserted subsec. heading, substituted ‘‘a detailed report on’’ for ‘‘a report on’’, and added subsec.
(b).
CHANGE OF NAME
Committee on Banking, Finance and Urban Affairs of
House of Representatives treated as referring to Committee on Banking and Financial Services 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.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see section 304 of Pub. L.
102–558, set out as a note under section 2062 of this Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
DELEGATION OF FUNCTIONS
Authority of President under this section with respect to offsets delegated to Secretary of Commerce by
section 401 of Ex. Ord. No. 12919, June 3, 1994, 59 F.R.
29529, set out as a note under section 2153 of this Appendix.
DECLARATION OF OFFSET POLICY
Section 123 of Pub. L. 102–558 provided that:
‘‘(a) IN GENERAL.—Recognizing that certain offsets
for military exports are economically inefficient and
market distorting, and mindful of the need to minimize
the adverse effects of offsets in military exports while
ensuring that the ability of United States firms to
compete for military export sales is not undermined, it
is the policy of the Congress that—
‘‘(1) no agency of the United States Government
shall encourage, enter directly into, or commit
United States firms to any offset arrangement in connection with the sale of defense goods or services to
foreign governments;
‘‘(2) United States Government funds shall not be
used to finance offsets in security assistance transactions, except in accordance with policies and procedures that were in existence on March 1, 1992;
‘‘(3) nothing in this section shall prevent agencies
of the United States Government from fulfilling obligations incurred through international agreements
entered into before March 1, 1992; and
‘‘(4) the decision whether to engage in offsets, and
the responsibility for negotiating and implementing

§ 2099a

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

offset arrangements, reside with the companies involved.
‘‘(b) PRESIDENTIAL APPROVAL OF EXCEPTIONS.—It is
the policy of the Congress that the President may approve an exception to the policy stated in subsection
(a) after receiving the recommendation of the National
Security Council.
‘‘(c) CONSULTATION.—It is the policy of the Congress
that the President shall designate the Secretary of Defense to lead, in coordination with the Secretary of
State, an interagency team to consult with foreign nations on limiting the adverse effects of offsets in defense procurement. The President shall transmit an annual report on the results of these consultations to the
Congress as part of the report required under section
309(a) of the Defense Production Act of 1950 [50 App.
U.S.C. 2099(a)].’’

§ 2099a. Civil-military integration
An important purpose of this title [sections
2091 to 2099a of this title] is the creation of production capacity that will remain economically
viable after guarantees and other assistance provided under this title [said sections] have expired.
(Sept. 8, 1950, ch. 932, title III, § 310, as added
Pub. L. 102–558, title I, § 125, Oct. 28, 1992, 106
Stat. 4208.)
EFFECTIVE DATE
Section deemed to have become effective Mar. 1, 1992,
see section 304 of Pub. L. 102–558, set out as an Effective
Date of 1992 Amendment note under section 2062 of this
Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.

TITLE IV—PRICE AND WAGE
STABILIZATION
§§ 2101 to 2112. Omitted
CODIFICATION
Section 2101, act Sept. 8, 1950, ch. 932, title IV, § 401,
64 Stat. 803, related to purposes of price and wage stabilization and cooperation by government agencies.
Section 2102, acts Sept. 8, 1950, ch. 932, title IV, § 402,
64 Stat. 803; July 31, 1951, ch. 275, title I, § 104 (a) to (h),
65 Stat. 134; June 30, 1952, ch. 530, title I, §§ 105 to 111,
66 Stat. 298, related to price and wage controls.
Section 2103, acts Sept. 8, 1950, ch. 932, title IV, § 403,
64 Stat. 807; July 31, 1951, ch. 275, title I, § 105(a), 65 Stat.
137; June 30, 1952, ch. 530, title I, § 112, 66 Stat. 300, authorized an independent agency to administer price and
wage controls and rationing, created a Wage Stabilization Board in the Economic Stabilization Agency and
prescribed its duties and functions and prescribed the
jurisdiction of the Salary Stabilization Board and the
Office of Salary Stabilization within the Economic Stabilization Agency. Act Sept. 8, 1950, ch. 932, title IV,
§ 403, 64 Stat. 807, formerly classified to section 2103 of
this Appendix, was repealed by Pub. L. 89–554, § 8(a),
Sept. 6, 1966, 80 Stat. 656.
Section 2104, act Sept. 8, 1950, ch. 932, title IV, § 404,
64 Stat. 807, authorized consultation by the President
with representatives of persons affected by regulations
or orders relating to price and wage controls.
Section 2105, acts Sept. 8, 1950, ch. 932, title IV, 405,
64 Stat. 807; July 31, 1951, ch. 275, title I, § 104(i), 65 Stat.
136, related to unlawfulness for violating sections 2101
to 2112 of this appendix or any regulations, orders or requirements issued thereunder.
Section 2106, act Sept. 8, 1950, ch. 932, title IV, § 406,
64 Stat. 807, prohibited any construction of sections
2101 to 2112 of this Appendix as requiring any person to

Page 246

sell any material or service, or to perform personal
services.
Section 2107, acts Sept. 8, 1950, ch. 932, title IV, § 407,
64 Stat. 807; June 30, 1952, ch. 530, title I, § 113(a), 66
Stat. 301, related to objections to price and rent control
regulations, filing, hearing and determination of protests, procedure, and review.
Section 2108, acts Sept. 8, 1950, ch. 932, title IV, § 408,
64 Stat. 808; June 30, 1952, ch. 530, title I, § 113(b), 66
Stat. 302, related to determination, by the Emergency
Court of Appeals, of validity of price, wage and rent
control regulations, procedure, review by the Supreme
Court, and stay of civil and criminal proceedings in
other courts for determination of such validity.
Section 2109, acts Sept. 8, 1950, ch. 932, title IV, § 409,
64 Stat. 811; July 31, 1951, ch. 275, title I, § 104(j) to (l) 65
Stat. 136, in connection with actions for violations of
section 2105 of this Appendix, and regulations or orders,
related to injunctions, criminal penalties, recovery of
overcharges, and disallowance of fines, penalties, and
compromise sums for tax or other purposes.
Section 2110, act Sept. 8, 1950, ch. 932, title IV, § 410,
64 Stat. 812, required certain price representations and
agreements to be contained in contracts providing for
the purchase of processed chickens and turkeys by government agencies.
Section 2111, act Sept. 8, 1950, ch. 932, title IV, § 411,
as added June 30, 1952, ch. 530, title I, § 114, 66 Stat. 304,
made it unnecessary to furnish reports on sales or services below ceiling prices if such sales at such prices had
been certified to the President.
Section 2112, act Sept. 8, 1950, ch. 932, title IV, § 412,
as added June 30, 1952, ch. 530, title I, § 114, 66 Stat. 304,
permitted suspension or termination of price and wage
controls over any materials or services, from time to
time as economic factors might warrant, and their restoration if deemed necessary.
TERMINATION DATE
Sections 2101 to 2112 terminated at close of Apr. 30,
1953, by the terms of section 2166(a) of this Appendix.
EXECUTIVE ORDER NO. 10160
Ex. Ord. No. 10160, Sept. 9, 1950, 15 F.R. 6103, which related to preservation of records for certain purposes,
was revoked by Ex. Ord. No. 10662, Mar. 13, 1956, 21 F.R.
1673.
EX. ORD. NO. 10434. SUSPENSION OF WAGE AND PRICE
CONTROLS
Ex. Ord. No. 10434, Feb. 6, 1953, 18 F.R. 809, provided:
1. All regulations and orders issued pursuant to the
Defense Production Act of 1950, as amended [see section
2061 of this Appendix], stabilizing wages, salaries, and
other compensation, are hereby suspended.
2. The wage, salary, and other compensation adjustments proposed in petitions pending before wage and
salary control agencies may now be placed in effect
without the approval of such agencies. To the extent
that agreements involved in such petitions are conditioned upon approval under Title IV of the Defense Production Act [sections 2101 to 2112 of this Appendix], this
order shall be deemed such approval, but such approval
shall be subject to paragraph 3 hereof.
3. This order shall not operate to defeat any suit, action, prosecution, or administrative enforcement proceeding, whether heretofore or hereafter commenced,
with respect to any right, liability, or offense possessed, incurred, or committed, prior to this date.
DWIGHT D. EISENHOWER.
EXECUTIVE ORDER NO. 10494
Ex. Ord. No. 10494, Oct. 14, 1953, 18 F.R. 6585, as
amended by Ex. Ord. No. 10773, July 1, 1958, 23 F.R. 5061;
Ex. Ord. No. 10782, Sept. 6, 1958, 23 F.R. 6971, which related to the disposition of remaining functions, was revoked by section 5–103 of Ex. Ord. No. 12148, July 20,
1979, 44 F.R. 43243, set out as a note under section 5195
of Title 42, The Public Health and Welfare.

Page 247

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

TITLE V—SETTLEMENT OF LABOR
DISPUTES
§§ 2121 to 2123. Omitted
CODIFICATION
Section 2121, act Sept. 8, 1950, ch. 932, title V, § 501, 64
Stat. 812, stated intent of Congress in providing for settlement of labor disputes affecting national defense.
Section 2122, acts Sept. 8, 1950, ch. 932, title V, § 502,
64 Stat. 812; July 31, 1951, ch. 275, title I, § 105(b), 65 Stat.
137, stated national policy in connection with such settlement, and provided for voluntary conferences.
Section 2123, acts Sept. 8, 1950, ch. 932, title V, § 503,
64 Stat. 812; July 31, 1951, ch. 275, title I, § 105(c), 65 Stat.
137; June 30, 1952, ch. 530, title I, § 115, 66 Stat. 305, provided that, in such settlements, due regard should be
given to collective bargaining and other laws, and, as
amended by the act of June 30, 1952, requested the
President to invoke the Labor-Management Relations
Act, 1947, (29 U.S.C. 141 et seq.), with regard to the steel
strike then existing.
TERMINATION DATE
Sections 2121 to 2123 terminated at close of Apr. 30,
1953, by the terms of section 2166(a) of this Appendix.

TITLE VI—CONTROL OF REAL ESTATE
CREDIT
CODIFICATION
Sections 2132 to 2137 of this Appendix, which comprised this title, terminated on June 30, 1953, by the
terms of section 2166(a) of this Appendix. Previous to
such termination, act June 30, 1952, ch. 530, title I,
§ 116(a), 66 Stat. 305 amended catchline of title to omit
reference to consumer credit control and subtitle heading of this title to read ‘‘This title authorizes the regulation of real estate construction credit only.’’

§ 2131. Repealed. June 30, 1952, ch. 530, title I,
§ 116(a), 66 Stat. 305
Section, acts Sept. 8, 1950, ch. 932, title VI, § 601, 64
Stat. 812; July 31, 1951, ch. 275, title I, § 106(a), 65 Stat.
138, related to power to exercise consumer credit controls.

§§ 2132 to 2137. Omitted
CODIFICATION
Section 2132, act Sept. 8, 1950, ch. 932, title VI, § 602,
64 Stat. 813, related to real estate construction credit.
Section 2133, acts Sept. 8, 1950, ch. 932, title VI, § 603,
64 Stat. 814; July 31, 1951, ch. 275, title I, § 106(b), 65 Stat.
138, prescribed penalties for violating sections 2131, 2132
and 2135 of this Appendix or any regulation or order issued thereunder.
Section 2134, act Sept. 8, 1950, ch. 932, title VI, § 604,
64 Stat. 814, related to consumer credit controls.
Section 2135, acts Sept. 8, 1950, ch. 932, title VI, § 605,
64 Stat. 814; July 31, 1951, ch. 275, title I, § 106(c), 65 Stat.
138; Sept. 1, 1951, ch. 378, title VI, § 602(a), 65 Stat. 313,
related to real estate loans by government agencies.
Section 2136, act Sept. 8, 1950, ch. 932, title VI, § 606,
as added Sept. 1, 1951, ch. 378, title VI, § 602(b), 65 Stat.
313, related to down-payment requirements on veterans
homes.
Section 2137, act Sept. 8, 1950, ch. 932, title VI, § 607,
as added June 30, 1952, ch. 530, title I, § 116(b), 66 Stat.
305, related to credit controls on residential property.
TERMINATION DATE
Sections 2132 to 2137 terminated at close of June 30,
1953, by the terms of section 2166(a) of this Appendix.

TITLE VII—GENERAL PROVISIONS
TITLE REFERRED TO IN OTHER SECTIONS
This title is referred to in section 2166 of this Appendix.

§ 2151

§ 2151. Small business
(a) Participation
Small business concerns shall be given the
maximum practicable opportunity to participate as contractors, and subcontractors at various tiers, in all programs to maintain and
strengthen the Nation’s industrial base and
technology base undertaken pursuant to this
Act [sections 2061 to 2171 of this Appendix].
(b) Administration of Act
In administering the programs, implementing
regulations, policies, and procedures under this
Act [sections 2061 to 2171 of this Appendix], requests, applications, or appeals from small business concerns shall, to the maximum extent
practicable, be expeditiously handled.
(c) Advisory committee participation
Representatives of small business concerns
shall be afforded the maximum opportunity to
participate in such advisory committees as may
be established pursuant to this Act [sections
2061 to 2171 of this Appendix].
(d) Information
Information about this Act [sections 2061 to
2171 of this Appendix] and activities undertaken
in accordance with this Act [said sections] shall
be made available to small business concerns.
(e) Allocations under section 101
Whenever the President makes a determination to exercise any authority to allocate any
material pursuant to section 101 [section 2071 of
this Appendix], small business concerns shall be
accorded, to the extent practicable, a fair share
of such material, in proportion to the share received by such business concerns under normal
conditions, giving such special consideration as
may be possible to emerging small business concerns.
(Sept. 8, 1950, ch. 932, title VII, § 701, 64 Stat. 815;
July 31, 1951, ch. 275, title I, § 108, 65 Stat. 138;
June 30, 1953, ch. 171, § 7, 67 Stat. 130; Aug. 9, 1955,
ch. 655, §§ 4, 5, 69 Stat. 580; Pub. L. 96–294, title I,
§ 105(c), June 30, 1980, 94 Stat. 633; Pub. L. 102–558,
title I, § 131, Oct. 28, 1992, 106 Stat. 4209.)
AMENDMENTS
1992—Pub. L. 102–558 amended section generally, substituting present provisions for provisions stating policy to encourage small business enterprises and providing for measures to carry out this policy, for allocation
of materials in the civilian market, and for distribution of defense contracts.
1980—Subsec. (d). Pub. L. 96–294 substituted ‘‘enactment of the Defense Production Act Amendments of
1980’’ for ‘‘enactment of the Defense Production Act
Amendments of 1955’’.
1955—Subsec. (c). Act Aug. 9, 1955, § 4, struck out specific dates which were the basis for determination of
materials in civilian market and inserted provisions requiring that a business receive its fair share based on
a representative period before imposition of the allocation.
Subsec. (d). Act Aug. 9, 1955, § 5, added subsec. (d).
1953—Subsec. (c). Act June 30, 1953, amended subsec.
(c) generally, the principal change being to provide, in
the allocation to business of a fair share of available civilian supply, a new base period for allocating materials not under control on July 1, 1953.
1951—Subsec. (c). Act July 31, 1951, provided that limitations and restrictions on production of specific
items shall not exclude new concerns.

§ 2152

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE
EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see section 304 of Pub. L.
102–558, set out as a note under section 2062 of this Appendix.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96–294 effective June 30, 1980,
see section 107 of Pub. L. 96–294, set out as a note under
section 2062 of this Appendix.
EFFECTIVE DATE OF 1955 AMENDMENT
Amendment by act Aug. 9, 1955, effective as of close
of July 31, 1955, see section 11 of act Aug. 9, 1955, set out
as a note under section 2062 of this Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
DELEGATION OF FUNCTIONS
Functions of President under act Sept. 8, 1950 [section
2061 et seq. of this Appendix], relating to production,
conservation, use, control, distribution, and allocation
of energy, delegated to Secretary of Energy, see section
4 of Ex. Ord. No. 11790, June 25, 1974, 39 F.R. 23185, set
out as a note under section 761 of Title 15, Commerce
and Trade.

§ 2152. Definitions
For purposes of this Act [sections 2061 to 2171
of this Appendix], the following definitions shall
apply:
(1) Critical component
The term ‘‘critical component’’ includes
such components, subsystems, systems, and
related special tooling and test equipment essential to the production, repair, maintenance, or operation of weapon systems or
other items of military equipment identified
by the Secretary of Defense as being essential
to the execution of the national security
strategy of the United States. Components
identified as critical by a National Security
Assessment conducted pursuant to section
113(i) of title 10, United States Code, or by a
Presidential determination as a result of a petition filed under section 232 of the Trade Expansion Act of 1962 [19 U.S.C. 1862] shall be designated as critical components for purposes of
this Act [sections 2061 to 2171 of this Appendix], unless the President determines that the
designation is unwarranted.
(2) Critical industry for national security
The term ‘‘critical industry for national security’’ means any industry (or industry sector) identified pursuant to section 2503(6) 1 of
title 10, United States Code, and such other industries or industry sectors as may be designated by the President as essential to provide industrial resources required for the execution of the national security strategy of the
United States.
(3) Critical technology
The term ‘‘critical technology’’ includes any
technology that is included in 1 or more of the
plans submitted pursuant to section 6681 of
title 42, United States Code, or section 2508 1 of
1 See

References in Text note below.

Page 248

title 10, United States Code (unless subsequently deleted), or such other emerging or
dual use technology as may be designated by
the President.
(4) Critical technology item
The term ‘‘critical technology item’’ means
materials directly employing, derived from, or
utilizing a critical technology.
(5) Defense contractor
The term ‘‘defense contractor’’ means any
person who enters into a contract with the
United States—
(A) to furnish materials, industrial resources, or a critical technology for the national defense; or
(B) to perform services for the national defense.
(6) Domestic defense industrial base
The term ‘‘domestic defense industrial base’’
means domestic sources which are providing,
or which would be reasonably expected to provide, materials or services to meet national
defense requirements during peacetime, graduated mobilization, national emergency, or
war.
(7) Domestic source
The term ‘‘domestic source’’ means a business concern—
(A) that performs in the United States or
Canada substantially all of the research and
development, engineering, manufacturing,
and production activities required of such
business concern under a contract with the
United States relating to a critical component or a critical technology item; and
(B) that procures from business concerns
described in subparagraph (A) substantially
all of any components and assemblies required under a contract with the United
States relating to a critical component or
critical technology item.
(8) Essential weapon system
The term ‘‘essential weapon system’’ means
a major weapon system and other items of
military equipment identified by the Secretary of Defense as being essential to the execution of the national security strategy of the
United States.
(9) Facilities
The term ‘‘facilities’’ includes all types of
buildings, structures, or other improvements
to real property (but excluding farms, churches or other places of worship, and private
dwelling houses), and services relating to the
use of any such building, structure, or other
improvement.
(10) Foreign source
The term ‘‘foreign source’’ means a business
entity other than a ‘‘domestic source’’.
(11) Industrial resources
The term ‘‘industrial resources’’ means materials, services, processes, or manufacturing
equipment (including the processes, technologies, and ancillary services for the use of
such equipment) needed to establish or maintain an efficient and modern national defense
industrial capacity.

Page 249

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

(12) Materials
The term ‘‘materials’’ includes—
(A) any raw materials (including minerals,
metals, and advanced processed materials),
commodities, articles, components (including critical components), products, and
items of supply; and
(B) any technical information or services
ancillary to the use of any such materials,
commodities, articles, components, products, or items.
(13) National defense
The term ‘‘national defense’’ means programs for military and energy production or
construction, military assistance to any foreign nation, stockpiling, space, and any directly related activity. Such term includes
emergency preparedness activities conducted
pursuant to title VI of The Robert T. Stafford
Disaster Relief and Emergency Assistance Act
[42 U.S.C. 5195 et seq.].
(14) Person
The term ‘‘person’’ includes an individual,
corporation, partnership, association, or any
other organized group of persons, or legal successor or representative thereof, or any State
or local government or agency thereof.
(15) Services
The term ‘‘services’’ includes any effort that
is needed for or incidental to—
(A) the development, production, processing, distribution, delivery, or use of an industrial resource or a critical technology
item; or
(B) the construction of facilities.
(16) Small business concern
The term ‘‘small business concern’’ means a
business concern that meets the requirements
of section 3(a) of the Small Business Act [15
U.S.C. 632(a)] and the regulations promulgated
pursuant to that section, and includes such
business concerns owned and controlled by socially and economically disadvantaged individuals or by women.
(17) Small business concern owned and controlled by socially and economically disadvantaged individuals
The term ‘‘small business concern owned
and controlled by socially and economically
disadvantaged individuals’’ has the same
meaning as in section 8(d)(3)(C) of the Small
Business Act [15 U.S.C. 637(d)(3)(C)].
(Sept. 8, 1950, ch. 932, title VII, § 702, 64 Stat. 815;
June 30, 1953, ch. 171, § 8, 67 Stat. 130; Pub. L.
91–379, title I, § 102, Aug. 15, 1970, 84 Stat. 796;
Pub. L. 102–558, title I, § 132, Oct. 28, 1992, 106
Stat. 4210; Pub. L. 103–337, div. C, title XXXIV,
§ 3411(b), Oct. 5, 1994, 108 Stat. 3110.)
REFERENCES IN TEXT
Section 2503 of title 10, referred to in par. (2), was repealed and a new section 2503 relating to analysis of the
technology and industrial base was enacted by Pub. L.
102–484, div. D, title XLII, §§ 4202(a), 4213(a), Oct. 23, 1992,
106 Stat. 2659, 2665.
Section 2508 of title 10, referred to in par. (3), was renumbered section 2522 of title 10 by Pub. L. 102–190, div.
A, title VIII, § 821(b)(1), Dec. 5, 1991, 105 Stat. 1431, and

§ 2153

was repealed and a new section relating to defense advanced manufacturing technology partnerships was enacted and renumbered section 2522 by Pub. L. 102–484,
div. D, title XLII, §§ 4202(a), 4232(a), (b), Oct. 23, 1992, 106
Stat. 2659, 2687, and was subsequently repealed.
The Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in par. (13), is Pub. L.
93–288, May 22, 1974, 88 Stat. 143, as amended. Title VI
of the Act is classified generally to subchapter IV–B
(§ 5195 et seq.) of chapter 68 of Title 42, The Public
Health and Welfare. For complete classification of this
Act to the Code, see Short Title note set out under section 5121 of Title 42 and Tables.
AMENDMENTS
1994—Par. (13). Pub. L. 103–337 inserted at end ‘‘Such
term includes emergency preparedness activities conducted pursuant to title VI of The Robert T. Stafford
Disaster Relief and Emergency Assistance Act.’’
1992—Pub. L. 102–558 amended section generally, substituting present provisions for provisions defining
terms ‘‘person’’, ‘‘materials’’, ‘‘facilities’’, ‘‘national
defense’’, ‘‘wages, salaries, and other compensation’’,
and ‘‘defense contractor’’.
1970—Subsec. (d). Pub. L. 91–379, § 102(1), inserted reference to space in definition of national defense.
Subsec. (f). Pub. L. 91–379, § 102(2), added subsec. (f).
1953—Subsec. (d). Act June 30, 1953, amended subsec.
(d) generally which, among other changes, inserted references to construction, military assistance to foreign
nations and stockpiling, and struck out specific reference to ‘‘operations or activities in connection with
the Mutual Defense Assistance Act of 1949, as amended’’.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see section 304 of Pub. L.
102–558, set out as a note under section 2062 of this Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.

§ 2153. Civilian personnel
Any officer or agency head may—
(1) appoint civilian personnel without regard
to section 5331(b) of title 5, United States
Code, and without regard to the provisions of
title 5, United States Code, governing appointments in the competitive service; and
(2) fix the rate of basic pay for such personnel without regard to the provisions of chapter
51 and subchapter III of chapter 53 of title 5,
United States Code, relating to classification
and General Schedule pay rates,
except that no individual so appointed may receive pay in excess of the annual rate of basic
pay payable for GS–18 of the General Schedule,
as the President deems appropriate to carry out
this Act [sections 2061 to 2171 of this Appendix].
(Sept. 8, 1950, ch. 932, title VII, § 703, 64 Stat. 816;
July 31, 1951, ch. 275, title I, § 109(a), (b), 65 Stat.
138; Pub. L. 102–558, title I, § 133, Oct. 28, 1992, 106
Stat. 4212.)
REFERENCES IN TEXT
The provisions of title 5, United States Code, governing appointments in the competitive service, referred
to in par. (1), are classified generally to section 3301 et
seq. of Title 5, Government Organization and Employees.
AMENDMENTS
1992—Pub. L. 102–558 amended section generally, substituting present provisions for provisions relating to

§ 2153

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

delegation of Presidential authority, creation of new
agencies, appointment and compensation of officers
and personnel, and State representation in regional offices.
1951—Subsec. (a). Act July 31, 1951, § 109(a), provided
that executive head of one agency under this act shall
be paid at a rate comparable to that paid heads of executive departments.
Subsec. (b). Act July 31, 1951, § 109(b), to provide for
State representation in regional offices.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see section 304 of Pub. L.
102–558, set out as a note under section 2062 of this Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
REFERENCES IN OTHER LAWS TO GS–16, 17, OR 18 PAY
RATES
References in laws to the rates of pay for GS–16, 17,
or 18, or to maximum rates of pay under the General
Schedule, to be considered references to rates payable
under specified sections of Title 5, Government Organization and Employees, see section 529 [title I, § 101(c)(1)]
of Pub. L. 101–509, set out in a note under section 5376
of Title 5.
COMPENSATION OF CERTAIN OFFICIALS IN DOMESTIC AND
INTERNATIONAL BUSINESS ADMINISTRATION
Compensation for certain officials in Domestic and
International Business Administration, fixed at certain
prescribed rates, see Ex. Ord. No. 11759, Jan. 15, 1974, 39
F.R. 2077, formerly set out as a note under section 1511
of Title 15, Commerce and Trade.
COMPENSATION OF DIRECTOR AND DEPUTY DIRECTOR,
BUREAU OF DOMESTIC COMMERCE
Compensation for Director and Deputy Director, Bureau of Domestic Commerce, Department of Commerce,
was fixed at certain prescribed rates by Ex. Ord. No.
11567, Nov. 16, 1970, 35 F.R. 17701, which was superseded
by Ex. Ord. No. 11759, Jan. 15, 1974, 39 F.R. 2077, formerly set out as a note under section 1511 of Title 15,
Commerce and Trade.
EXECUTIVE ORDER NO. 10193
Ex. Ord. No. 10193, Dec. 16, 1950, 15 F.R. 9031, which
provided for conduct of mobilization effort of the Government, was revoked by Ex. Ord. No. 10480, Aug. 14,
1953, 18 F.R. 4939, formerly set out below.
EXECUTIVE ORDER NO. 10200
Ex. Ord. No. 10200, Jan. 3, 1951, 16 F.R. 61, as amended
by Ex. Ord. No. 10281, Aug. 28, 1951, 16 F.R. 8789; Ex. Ord.
No. 10433, Feb. 4, 1953, 18 F.R. 761, which related to establishment of Defense Production Administration, was
revoked by Ex. Ord. No. 10480, Aug. 18, 1953, 18 F.R. 4939,
formerly set out below.
EXECUTIVE ORDER NO. 10224
Ex. Ord. No. 10224, Mar. 15, 1951, 16 F.R. 2543, as
amended by Ex. Ord. No. 10461, June 17, 1953, 18 F.R.
3513, which provided for establishment of the National
Advisory Board on Mobilization Policy was revoked by
section 7(1) of Ex. Ord. No. 10773, July 1, 1958, 23 F.R.
5061, which was subsequently superseded by Ex. Ord.
No. 11051, Sept. 27, 1962, 27 F.R. 9683, formerly set out as
a note under section 2271 of this Appendix.
EXECUTIVE ORDER NO. 10281
Ex. Ord. No. 10281, Aug. 28, 1951, 16 F.R. 8789, which related to defense materials procurement and supply, was
revoked by Ex. Ord. No. 10480, Aug. 14, 1953, 18 F.R. 4939,
formerly set out below.

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EXECUTIVE ORDER NO. 10308
Ex. Ord. No. 10308, Dec. 3, 1951, 16 F.R. 12303, creating
the Committee on Government Contract Compliance,
was revoked and the Committee abolished by Ex. Ord.
No. 10479, Aug. 17, 1953, 18 F.R. 4899, which was subsequently revoked by Ex. Ord. No. 10925, Mar. 7, 1961, 26
F.R. 1977.
EXECUTIVE ORDER NO. 10433
Ex. Ord. No. 10433, Feb. 4, 1953, 18 F.R. 761, which provided for merger of Defense Production Administration
with the Office of Defense Mobilization, was revoked by
Ex. Ord. No. 10480, Aug. 14, 1953, 18 F.R. 4939, formerly
set out below.
EXECUTIVE ORDER NO. 10461
Ex. Ord. No. 10461, June 17, 1953, 18 F.R. 3513 which related to transfer of functions effected by Reorganization Plan No. 3 of 1953, was superseded by Ex. Ord. No.
11051, Sept. 27, 1962, 27 F.R. 9683, formerly set out as a
note under section 2271 of this Appendix.
EXECUTIVE ORDER NO. 10480
Ex. Ord. No. 10480, Aug. 14, 1953, 18 F.R. 4939, as
amended by Ex. Ord. No. 10489, Sept. 26, 1953, 18 F.R.
6201; Ex. Ord. No. 10537, June 22, 1954, 19 F.R. 3807; Ex.
Ord. No. 10574, Nov. 8, 1954, 19 F.R. 7249; Ex. Ord. No.
10662, Mar. 14, 1956, 21 F.R. 1673; Ex. Ord. No. 10773, July
1, 1958, 23 F.R. 5061; Ex. Ord. No. 10782, Sept. 6, 1958, 23
F.R. 6971; Ex. Ord. No. 10819, May 11, 1959, 24 F.R. 3779;
Ex. Ord. No. 11051, Sept. 27, 1962, 27 F.R. 9683; Ex. Ord.
No. 11062, Nov. 19, 1962, 27 F.R. 11447; Ex. Ord. No. 11956,
Jan. 13, 1977, 42 F.R. 2947; Ex. Ord. No. 12038, Feb. 3, 1978,
43 F.R. 4957; Ex. Ord. No. 12148, July 20, 1979, 44 F.R.
43239; Ex. Ord. No. 12381, § 4, Sept. 8, 1982, 47 F.R. 39795;
Ex. Ord. No. 12521, June 24, 1985, 50 F.R. 26335; Ex. Ord.
No. 12649, Aug. 11, 1988, 53 F.R. 30639; Ex. Ord. No. 12773,
Sept. 26, 1991, 56 F.R. 49387, which provided for administration of defense mobilization program, was revoked
by section 904(a)(3) of Ex. Ord. No. 12919, June 3, 1994, 59
F.R. 29533, set out below.
EXECUTIVE ORDER NO. 10660
Ex. Ord. No. 10660, Feb. 15, 1956, 21 F.R. 1117, as
amended by Ex. Ord. No. 10773, July 1, 1958, 23 F.R. 5061;
Ex. Ord. No. 10782, Sept. 6, 1958, 23 F.R. 6971; Ex. Ord.
No. 11051, Sept. 27, 1962, 27 F.R. 9683, which established
a National Defense Executive Reserve, was superseded
by Ex. Ord. No. 11179, Sept. 22, 1964, 29 F.R. 13239, formerly set out below.
EXECUTIVE ORDER NO. 11179
Ex. Ord. No. 11179, Sept. 22, 1964, 29 F.R. 13239, as
amended by Ex. Ord. No. 12148, July 20, 1979, 44 F.R.
43239, which established National Defense Executive
Reserve, was revoked by section 904(a)(5) of Ex. Ord.
No. 12919, June 3, 1994, 59 F.R. 29533, set out below.
EX. ORD. NO. 12919. NATIONAL DEFENSE INDUSTRIAL
RESOURCES PREPAREDNESS
Ex. Ord. No. 12919, June 3, 1994, 59 F.R. 29525, provided:
By the authority vested in me as President by the
Constitution and the laws of the United States of
America, including the Defense Production Act of 1950,
as amended (64 Stat. 798; 50 U.S.C. App. 2061, et seq.),
and section 301 of title 3, United States Code, and as
Commander in Chief of the Armed Forces of the United
States, it is hereby ordered as follows:
PART I—PURPOSE, POLICY AND
IMPLEMENTATION
SECTION 101. Purpose. This order delegates authorities
and addresses national defense industrial resource policies and programs under the Defense Production Act of
1950, as amended (‘‘the Act’’), except for the amendments to Title III of the Act [50 App. U.S.C. 2091 et seq.]
in the Energy Security Act of 1980 [Pub. L. 96–294] and
telecommunication authorities under Executive Order
No. 12472 [50 App. U.S.C. 2251 note].

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SEC. 102. Policy. The United States must have an industrial and technology base capable of meeting national defense requirements, and capable of contributing to the technological superiority of its defense
equipment in peacetime and in times of national emergency. The domestic industrial and technological base
is the foundation for national defense preparedness.
The authorities provided in the Act shall be used to
strengthen this base and to ensure it is capable of responding to all threats to the national security of the
United States.
SEC. 103. General Functions. Federal departments and
agencies responsible for defense acquisition (or for industrial resources needed to support defense acquisition) shall:
(a) Identify requirements for the full spectrum of national security emergencies, including military, industrial, and essential civilian demand;
(b) Assess continually the capability of the domestic
industrial and technological base to satisfy requirements in peacetime and times of national emergency,
specifically evaluating the availability of adequate industrial resource and production sources, including
subcontractors and suppliers, materials, skilled labor,
and professional and technical personnel;
(c) Be prepared, in the event of a potential threat to
the security of the United States, to take actions necessary to ensure the availability of adequate industrial
resources and production capability, including services
and critical technology for national defense requirements;
(d) Improve the efficiency and responsiveness, to defense requirements, of the domestic industrial base;
and
(e) Foster cooperation between the defense and commercial sectors for research and development and for
acquisition of materials, components, and equipment
to enhance industrial base efficiency and responsiveness.
SEC. 104. Implementation. (a) The National Security
Council is the principal forum for consideration and
resolution of national security resource preparedness
policy.
(b) The Director, Federal Emergency Management
Agency (‘‘Director, FEMA’’) shall:
(1) Serve as an advisor to the National Security
Council on issues of national security resource preparedness and on the use of the authorities and functions delegated by this order;
(2) Provide for the central coordination of the plans
and programs incident to authorities and functions
delegated under this order, and provide guidance and
procedures approved by the Assistant to the President for National Security Affairs to the Federal departments and agencies under this order;
(3) Establish procedures, in consultation with Federal departments and agencies assigned functions
under this order, to resolve in a timely and effective
manner conflicts and issues that may arise in implementing the authorities and functions delegated
under this order; and
(4) Report to the President periodically concerning
all program activities conducted pursuant to this
order.
(c) The head of every Federal department and agency
assigned functions under this order shall ensure that
the performance of these functions is consistent with
National Security Council policy and guidelines.
PART II—PRIORITIES AND ALLOCATIONS
SEC. 201. Delegations of Priorities and Allocations. (a)
The authority of the President conferred by section 101
of the Act [50 App. U.S.C. 2071] to require acceptance
and priority performance of contracts or orders (other
than contracts of employment) to promote the national
defense over performance of any other contracts or orders, and to allocate materials, services, and facilities
as deemed necessary or appropriate to promote the national defense, is delegated to the following agency
heads:

§ 2153

(1) The Secretary of Agriculture with respect to
food resources, food resource facilities, and the domestic distribution of farm equipment and commercial fertilizer;
(2) The Secretary of Energy with respect to all
forms of energy;
(3) The Secretary of Health and Human Services
with respect to health resources;
(4) The Secretary of Transportation with respect to
all forms of civil transportation;
(5) The Secretary of Defense with respect to water
resources; and
(6) The Secretary of Commerce for all other materials, services, and facilities, including construction
materials.
(b) The Secretary of Commerce, in consultation with
the heads of those departments and agencies specified
in subsection 201(a) of this order, shall administer the
Defense Priorities and Allocations System (‘‘DPAS’’)
regulations that will be used to implement the authority of the President conferred by section 101 of the Act
as delegated to the Secretary of Commerce in subsection 201(a)(6) of this order. The Secretary of Commerce will redelegate to the Secretary of Defense, and
the heads of other departments and agencies as appropriate, authority for the priority rating of contracts
and orders for all materials, services, and facilities
needed in support of programs approved under section
202 of this order. The Secretary of Commerce shall act
as appropriate upon Special Priorities Assistance requests in a time frame consistent with the urgency of
the need at hand.
(c) The Director, FEMA, shall attempt to resolve issues or disagreements on priorities or allocations between Federal departments or agencies in a time frame
consistent with the urgency of the issue at hand and, if
not resolved, such issues will be referred to the Assistant to the President for National Security Affairs for
final determination.
(d) The head of each Federal department or agency
assigned functions under subsection 201(a) of this order,
when necessary, shall make the finding required under
subsection 101(b) of the Act. This finding shall be submitted for the President’s approval through the Assistant to the President for National Security Affairs.
Upon such approval the head of the Federal department
or agency that made the finding may use the authority
of subsection 101(a) of the Act to control the general
distribution of any material (including applicable services) in the civilian market.
(e) The Assistant to the President for National Security Affairs is hereby delegated the authority under
subsection 101(c)(3) of the Act, and will be assisted by
the Director, FEMA, in ensuring the coordinated administration of the Act.
SEC. 202. Determinations. The authority delegated by
section 201 of this order may be used only to support
programs that have been determined in writing as necessary or appropriate to promote the national defense:
(a) By the Secretary of Defense with respect to military production and construction, military assistance
to foreign nations, stockpiling, outer space, and directly related activities;
(b) By the Secretary of Energy with respect to energy
production and construction, distribution and use, and
directly related activities; and
(c) By the Director, FEMA, with respect to essential
civilian needs supporting national defense, including
civil defense and continuity of government and directly
related activities.
SEC. 203. Maximizing Domestic Energy Supplies. The authority of the President to perform the functions provided by subsection 101(c) of the Act [50 App. U.S.C.
2071(c)] is delegated to the Secretary of Commerce, who
shall redelegate to the Secretary of Energy the authority to make the findings described in subsection
101(c)(2)(A) that the materials (including equipment),
services, and facilities are critical and essential. The
Secretary of Commerce shall make the finding described in subsection 101(c)(2)(A) of the Act that the

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

materials (including equipment), services, or facilities
are scarce, and the finding described in subsection
101(c)(2)(B) that it is necessary to use the authority
provided by subsection 101(c)(1).
SEC. 204. Chemical and Biological Warfare. The authority of the President conferred by subsection 104(b) of
the Act [50 App. U.S.C. 2074(b)] is delegated to the Secretary of Defense. This authority may not be further
delegated by the Secretary.
PART III—EXPANSION OF PRODUCTIVE CAPACITY
AND SUPPLY
SEC. 301. (a) Financing Institution Guarantees. To expedite or expand production and deliveries or services
under government contracts for the procurement of industrial resources or critical technology items essential to the national defense, the head of each Federal
department or agency engaged in procurement for the
national defense (referred to as ‘‘agency head’’ in this
part) and the President and Chairman of the ExportImport Bank of the United States (in cases involving
capacity expansion, technological development, or production in foreign countries) are authorized to guarantee in whole or in part any public or private financing
institution, subject to provisions of section 301 of the
Act [50 App. U.S.C. 2091]. Guarantees shall be made in
consultation with the Department of the Treasury as
to the terms and conditions thereof. The Director of
the Office of Management and Budget (‘‘OMB’’) shall be
informed when such guarantees are to be made.
(b) Direct Loan Guarantees. To expedite or expand production and deliveries or services under government
contracts for the procurement of industrial resources
or critical technology items essential to the national
defense, each agency head is authorized to make direct
loan guarantees from funds appropriated to their agency for Title III [50 App. U.S.C. 2091 et seq.].
(c) Fiscal Agent. Each Federal Reserve Bank is designated and authorized to act, on behalf of any guaranteeing agency, as fiscal agent in the making of guarantee contracts and in otherwise carrying out the purposes of section 301 of the Act.
(d) Regulations. The Board of Governors of the Federal
Reserve System is authorized, after consultation with
heads of guaranteeing departments and agencies, the
Secretary of the Treasury, and the Director, OMB, to
prescribe regulations governing procedures, forms,
rates of interest, and fees for such guarantee contracts.
SEC. 302. Loans. (a) To expedite production and deliveries or services to aid in carrying out government contracts for the procurement of industrial resources or a
critical technology item for the national defense, an
agency head is authorized, subject to the provisions of
section 302 of the Act [50 App. U.S.C. 2092], to submit to
the Secretary of the Treasury or the President and
Chairman of the Export-Import Bank of the United
States (in cases involving capacity expansion, technological development, or production in foreign countries) applications for loans.
(b) To expedite or expand production and deliveries or
services under government contracts for the procurement of industrial resources or critical technology
items essential to the national defense, each agency
head may make direct loans from funds appropriated to
their agency for Title III.
(c) After receiving a loan application and determining that financial assistance is not otherwise available
on reasonable terms, the Secretary of the Treasury or
the President and Chairman of the Export-Import Bank
of the United States (in cases involving capacity expansion, technological development, or production in foreign countries) may make loans, subject to provisions
of section 302 of the Act.
SEC. 303. Purchase Commitments. (a) In order to carry
out the objectives of the Act, and subject to the provisions of section 303 [50 App. U.S.C. 2093] thereof, an
agency head is authorized to make provision for purchases of, or commitments to purchase, an industrial
resource or a critical technology item for government
use or resale.

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(b) Materials acquired under section 303 of the Act
that exceed the needs of the programs under the Act
may be transferred to the National Defense Stockpile,
if such transfer is determined by the Secretary of Defense as the National Defense Stockpile Manager to be
in the public interest.
SEC. 304. Subsidy Payments. In order to ensure the supply of raw or non-processed materials from high-cost
sources, an agency head is authorized to make subsidy
payments, after consultation with the Secretary of the
Treasury and the Director, OMB, and subject to the
provisions of section 303(c) of the Act [50 App. U.S.C.
2093(c)].
SEC. 305. Determinations and Findings. When carrying
out the authorities in sections 301 through 303 of this
order, an agency head is authorized to make the required determinations, judgments, statements, certifications, and findings, in consultation with the Secretary of Defense, Secretary of Energy or Director,
FEMA, as appropriate. The agency head shall provide a
copy of the determination, judgment, statement, certification, or finding to the Director, OMB, to the Director, FEMA, and, when appropriate, to the Secretary
of the Treasury.
SEC. 306. Strategic and Critical Materials. (a) The Secretary of the Interior, in consultation with the Secretary of Defense as the National Defense Stockpile
Manager and subject to the provisions of section 303 of
the Act [50 App. U.S.C. 2093], is authorized to encourage
the exploration, development, and mining of critical
and strategic materials and other materials.
(b) An agency head is authorized, pursuant to section
303(g) of the Act, to make provision for the development of substitutes for strategic and critical materials,
critical components, critical technology items, and
other industrial resources to aid the national defense.
(c) An agency head is authorized, pursuant to section
303(a)(1)(B) of the Act, to make provisions to encourage
the exploration, development, and mining of critical
and strategic materials and other materials.
SEC. 307. Government-owned Equipment. An agency
head is authorized, pursuant to section 303(e) of the Act
[50 App. U.S.C. 2093(e)], to install additional equipment,
facilities, processes, or improvements to facilities
owned by the government and to install governmentowned equipment in industrial facilities owned by private persons.
SEC. 308. Identification of Shortfalls. Except during periods of national emergency or after a Presidential determination in accordance with sections 301(e)(1)(D)(ii),
302(c)(4)(B), or 303(a)(7)(B) of the Act [50 App. U.S.C.
2091(e)(1)(D)(ii), 2092(c)(4)(B), 2093(a)(7)(B)], no guarantee, loan or other action pursuant to sections 301, 302,
and 303 of the Act to correct an industrial shortfall
shall be taken unless the shortfall has been identified
in the Budget of the United States or amendments
thereto.
SEC. 309. Defense Production Act Fund Manager. The
Secretary of Defense is designated the Defense Production Act Fund Manager, in accordance with section
304(f) of the Act [50 App. U.S.C. 2094(f)], and shall carry
out the duties specified in that section, in consultation
with the agency heads having approved Title III
projects and appropriated Title III funds.
SEC. 310. Critical Items List. (a) Pursuant to section
107(b)(1)(A) of the Act [50 App. U.S.C. 2077(b)(1)(A)], the
Secretary of Defense shall identify critical components
and critical technology items for each item on the Critical Items List of the Commanders-in-Chief of the Unified and Specified Commands and other items within
the inventory of weapon systems and defense equipment.
(b) Each agency head shall take appropriate action to
ensure that critical components or critical technology
items are available from reliable sources when needed
to meet defense requirements during peacetime, graduated mobilization, and national emergency. ‘‘Appropriate action’’ may include restricting contract solicitations to reliable sources, restricting contract solicitations to domestic sources (pursuant to statutory au-

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

thority), stockpiling critical components, and developing substitutes for critical components or critical technology items.
SEC. 311. Strengthening Domestic Capability. An agency
head, in accordance with section 107(a) of the Act [50
App. U.S.C. 2077(a)], may utilize the authority of Title
III of the Act [50 App. U.S.C. 2091 et seq.] or any other
provision of law, in consultation with the Secretary of
Defense, to provide appropriate incentives to develop,
maintain, modernize, and expand the productive capacities of domestic sources for critical components, critical technology items, and industrial resources essential
for the execution of the national security strategy of
the United States.
SEC. 312. Modernization of Equipment. An agency head,
in accordance with section 108(b) of the Act [50 App.
U.S.C. 2078(b)], may utilize the authority of Title III of
the Act to guarantee the purchase or lease of advance
manufacturing equipment and any related services
with respect to any such equipment for purposes of the
Act.
PART IV—IMPACT OF OFFSETS
SEC. 401. Offsets. (a) The responsibilities and authority conferred upon the President by section 309 of the
Act [50 App. U.S.C. 2099] with respect to offsets are delegated to the Secretary of Commerce, who shall function as the President’s Executive Agent for carrying
out this authority.
(b) The Secretary of Commerce shall prepare the annual report required by section 309(a) of the Act in consultation with the Secretaries of Defense, Treasury,
Labor, State, the United States Trade Representative,
the Arms Control and Disarmament Agency, the Director of Central Intelligence, and the heads of other departments and agencies as required. The heads of Federal departments and agencies shall provide the Secretary of Commerce with such information as may be
necessary for the effective performance of this function.
(c) The offset report shall be subject to the normal
interagency clearance process conducted by the Director, OMB, prior to the report’s submission by the President to Congress.
PART V—VOLUNTARY AGREEMENTS AND
ADVISORY COMMITTEES
SEC. 501. Appointments. The authority of the President
under sections 708(c) and (d) of the Act [50 App. U.S.C.
2158(c), (d)] is delegated to the heads of each Federal department or agency, except that, insofar as that authority relates to section 101 of the Act [50 App. U.S.C.
2071], it is delegated only to the heads of each Federal
department or agency assigned functions under section
201(a) of this order. The authority delegated under this
section shall be exercised pursuant to the provisions of
section 708 of the Act, and copies and the status of the
use of such delegations shall be furnished to the Director, FEMA.
SEC. 502. Advisory Committees. The authority of the
President under section 708(d) of the Act [50 App. U.S.C.
2158(d)] and delegated in section 501 of this order (relating to establishment of advisory committees) shall be
exercised only after consultation with, and in accordance with, guidelines and procedures established by the
Administrator of General Services.
PART VI—EMPLOYMENT OF PERSONNEL
SEC. 601. National Defense Executive Reserve. (a) In accordance with section 710(e) of the Act [50 App. U.S.C.
2160(e)], there is established in the Executive Branch a
National Defense Executive Reserve (‘‘NDER’’) composed of persons of recognized expertise from various
segments of the private sector and from government
(except full-time federal employees) for training for
employment in executive positions in the Federal Government in the event of an emergency that requires
such employment.
(b) The head of any department or agency may establish a unit of the NDER in the department or agency
and train members of that unit.

§ 2153

(c) The head of each department or agency with an
NDER unit is authorized to exercise the President’s authority to employ civilian personnel in accordance
with section 703(a) of the Act [50 App. U.S.C. 2153(a)]
when activating all or a part of its NDER unit. The exercise of this authority shall be subject to the provisions of subsections 601(d) and (e) of this order and shall
not be redelegated.
(d) The head of a department or agency may activate
an NDER unit, in whole or in part, upon the written determination that an emergency affecting the national
security or defense preparedness of the United States
exists and that the activation of the unit is necessary
to carry out the emergency program functions of the
department or agency.
(e) At least 72 hours prior to activating the NDER
unit, the head of the department or agency shall notify,
in writing, the Assistant to the President for National
Security Affairs of the impending activation and provide a copy of the determination required under subsection 601(d) of this order.
(f) The Director, FEMA, shall coordinate the NDER
program activities of departments and agencies in establishing units of the Reserve; provide for appropriate
guidance for recruitment, training, and activation; and
issue necessary rules and guidance in connection with
the program.
(g) This order suspends any delegated authority, regulation, or other requirement or condition with respect
to the activation of any NDER unit, in whole or in
part, or appointment of any NDER member that is inconsistent with the authorities delegated herein, provided that the aforesaid suspension applies only as long
as sections 703(a) and 710(e) of the Act are in effect.
SEC. 602. Consultants. The head of each department or
agency assigned functions under this order is delegated
authority under sections 710(b) and (c) of the Act [50
App. U.S.C. 2160(b), (c)] to employ persons of outstanding experience and ability without compensation and to
employ experts, consultants, or organizations. The authority delegated by this section shall not be redelegated.
PART VII—LABOR SUPPLY
SEC. 701. Secretary of Labor. The Secretary of Labor,
identified in this section as the Secretary, shall:
(a) Collect, analyze, and maintain data needed to
make a continuing appraisal of the nation’s labor requirements and the supply of workers for purposes of
national defense. All agencies of the government shall
cooperate with the Secretary in furnishing information
necessary for this purpose, to the extent permitted by
law;
(b) In response to requests from the head of a Federal
department or agency engaged in the procurement for
national defense, consult with and advise that department or agency with respect to (1) the effect of contemplated actions on labor supply and utilization, (2)
the relation of labor supply to materials and facilities
requirements, and (3) such other matters as will assist
in making the exercise of priority and allocations functions consistent with effective utilization and distribution of labor;
(c) Formulate plans, programs, and policies for meeting defense and essential civilian labor requirements;
(d) Project skill shortages to facilitate meeting defense and essential civilian needs and establish training
programs;
(e) Determine the occupations and skills critical to
meeting the labor requirements of defense and essential civilian activities and, with the assistance of the
Secretary of Defense, the Director of Selective Service,
and such other persons as the Director, FEMA, may
designate, develop policies regulating the induction
and deferment of personnel for the armed services, except for civilian personnel in the reserves; and
(f) Administer an effective labor-management relations policy to support the activities and programs
under this order with the cooperation of other Federal
agencies, including the National Labor Relations Board
and the Federal Mediation and Conciliation Service.

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

PART VIII—DEFENSE INDUSTRIAL BASE
INFORMATION AND REPORTS
SEC. 801. Foreign Acquisition of Companies. The Secretary of the Treasury, in cooperation with the Department of State, the Department of Defense, the Department of Commerce, the Department of Energy, the Department of Agriculture, the Attorney General, and the
Director of Central Intelligence, shall complete and
furnish a report to the President and then to Congress
in accordance with the requirements of section 721(k)
of the Act [50 App. U.S.C. 2170(k)] concerning foreign efforts to acquire United States companies involved in
research, development, or production of critical technologies and industrial espionage activities directed by
foreign governments against private U.S. companies.
SEC. 802. Defense Industrial Base Information System.
(a) The Secretary of Defense and the heads of other appropriate Federal departments and agencies, as determined by the Secretary of Defense, shall establish an
information system on the domestic defense industrial
base in accordance with the requirements of section 722
of the Act [50 App. U.S.C. 2171].
(b) In establishing the information system required
by subsection (a) of this order, the Secretary of Defense, the Secretary of Commerce, and the heads of
other appropriate Federal departments and agencies, as
determined by the Secretary of Defense in consultation
with the Secretary of Commerce, shall consult with
each other for the purposes of performing the duties
listed in section 722(d)(1) of the Act.
(c) The Secretary of Defense shall convene a task
force consisting of the Secretary of Commerce and the
Secretary of each military department and the heads of
other appropriate Federal departments and agencies, as
determined by the Secretary of Defense in consultation
with the Secretary of Commerce, to carry out the duties under section 722(d)(2) of the Act.
(d) The Secretary of Defense shall report to Congress
on a strategic plan for developing a cost-effective, comprehensive information system capable of identifying
on a timely, ongoing basis vulnerability in critical
components and critical technology items. The plans
shall include an assessment of the performance and
cost-effectiveness of procedures specified in section
722(b) of the Act.
(e) The Secretary of Commerce, acting through the
Bureau of the Census, shall consult with the Secretary
of Defense and the Director, FEMA, to improve the usefulness of information derived from the Census of Manufacturers in carrying out section 722 of the Act.
(f) The Secretary of Defense shall perform an analysis
of the production base for not more than two major
weapons systems of each military department in establishing the information system under section 722 of the
Act. Each analysis shall identify the critical components of each system.
(g) The Secretary of Defense, in consultation with the
Secretary of Commerce, and the heads of other Federal
departments and agencies as appropriate, shall issue a
biennial report on critical components and technology
in accordance with section 722(e) of the Act.
PART IX—GENERAL PROVISIONS
SEC. 901. Definitions. In addition to the definitions in
section 702 of the Act [50 App. U.S.C. 2152], the following definitions apply throughout this order:
(a) ‘‘Civil transportation’’ includes movement of persons and property by all modes of transportation in
interstate, intrastate, or foreign commerce within the
United States, its territories and possessions, and the
District of Columbia, and, without limitation, related
public storage and warehousing, ports, services, equipment and facilities, such as transportation carrier shop
and repair facilities. However, ‘‘civil transportation’’
shall not include transportation owned or controlled by
the Department of Defense, use of petroleum and gas
pipelines, and coal slurry pipelines used only to supply
energy production facilities directly. As applied herein,
‘‘civil transportation’’ shall include direction, control,

Page 254

and coordination of civil transportation capacity regardless of ownership.
(b) ‘‘Energy’’ means all forms of energy including petroleum, gas (both natural and manufactured), electricity, solid fuels (including all forms of coal, coke,
coal chemicals, coal liquification, and coal gasification), and atomic energy, and the production, conservation, use, control, and distribution (including
pipelines) of all of these forms of energy.
(c) ‘‘Farm equipment’’ means equipment, machinery,
and repair parts manufactured for use on farms in connection with the production or preparation for market
use of food resources.
(d) ‘‘Fertilizer’’ means any product or combination of
products that contain one or more of the elements—nitrogen, phosphorus, and potassium—for use as a plant
nutrient.
(e) ‘‘Food resources’’ means all commodities and
products, simple, mixed, or compound, or complements
to such commodities or products, that are capable of
being ingested by either human beings or animals, irrespective of other uses to which such commodities or
products may be put, at all stages of processing from
the raw commodity to the products thereof in vendible
form for human or animal consumption. ‘‘Food resources’’ also means all starches, sugars, vegetable and
animal or marine fats and oils, cotton, tobacco, wool,
mohair, hemp, flax fiber, and naval stores, but does not
mean any such material after it loses its identity as an
agricultural commodity or agricultural product.
(f) ‘‘Food resource facilities’’ means plants, machinery, vehicles (including on-farm), and other facilities
required for the production, processing, distribution,
and storage (including cold storage) of food resources,
livestock and poultry feed and seed, and for the domestic distribution of farm equipment and fertilizer (excluding transportation thereof).
(g) ‘‘Functions’’ include powers, duties, authority, responsibilities, and discretion.
(h) ‘‘Head of each Federal department or agency engaged in procurement for the national defense’’ means
the heads of the Departments of Defense, Energy, and
Commerce, as well as those departments and agencies
listed in Executive Order No. 10789 [50 U.S.C. 1431 note].
(i) ‘‘Heads of other appropriate Federal departments
and agencies’’ as used in part VIII of this order means
the heads of such other Federal agencies and departments that acquire information or need information
with respect to making any determination to exercise
any authority under the Act.
(j) ‘‘Health resources’’ means materials, facilities,
health supplies, and equipment (including pharmaceutical, blood collecting and dispensing supplies, biological, surgical textiles, and emergency surgical instruments and supplies) required to prevent the impairment of, improve, or restore the physical and mental
health conditions of the population.
(k) ‘‘Metals and minerals’’ means all raw materials of
mineral origin (excluding energy) including their refining, smelting, or processing, but excluding their fabrication.
(l) ‘‘Strategic and Critical Materials’’ means materials (including energy) that (1) would be needed to supply the military, industrial, and essential civilian
needs of the United States during a national security
emergency, and (2) are not found or produced in the
United States in sufficient quantities to meet such
need and are vulnerable to the termination or reduction of the availability of the material.
(m) ‘‘Water resources’’ means all usable water, from
all sources, within the jurisdiction of the United
States, which can be managed, controlled, and allocated to meet emergency requirements.
SEC. 902. General. (a) Except as otherwise provided in
subsection 902(c) of this order, the authorities vested in
the President by title VII of the Act [50 App. U.S.C. 2151
et seq.] may be exercised and performed by the head of
each department and agency in carrying out the delegated authorities under the Act and this order.
(b) The authorities which may be exercised and performed pursuant to subsection 902(a) of this order shall

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

include (1) the power to redelegate authorities, and to
authorize the successive redelegation of authorities, to
departments and agencies, officers, and employees of
the government, and (2) the power of subpoena with respect to authorities delegated in parts II, III, and IV of
this order, provided that the subpoena power shall be
utilized only after the scope and purpose of the investigation, inspection, or inquiry to which the subpoena
relates have been defined either by the appropriate officer identified in subsection 902(a) of this order or by
such other person or persons as the officer shall designate.
(c) Excluded from the authorities delegated by subsection 902(a) of this order are authorities delegated by
parts V, VI, and VIII of this order and the authority
with respect to fixing compensation under section
703(a) of the Act [50 App. U.S.C. 2153(a)].
SEC. 903. Authority. All previously issued orders, regulations, rulings, certificates, directives, and other actions relating to any function affected by this order
shall remain in effect except as they are inconsistent
with this order or are subsequently amended or revoked
under proper authority. Nothing in this order shall affect the validity or force of anything done under previous delegations or other assignment of authority
under the Act.
SEC. 904. Effect on other Orders. (a) The following are
superseded or revoked:
(1) Section 3, Executive Order No. 8248 of September
8, 1939, (4 FR 3864).
(2) Executive Order No. 10222 of March 8, 1951 (16 FR
2247) [50 App. U.S.C. 2256 note].
(3) Executive Order No. 10480 of August 14, 1953 (18
FR 4939) [formerly set out above].
(4) Executive Order No. 10647 of November 28, 1955
(20 FR 8769) [50 App. U.S.C. 2160 note].
(5) Executive Order No. 11179 of September 22, 1964
(29 FR 13239) [formerly set out above].
(6) Executive Order No. 11355 of May 26, 1967 (32 FR
7803) [50 App. U.S.C. 2160 note].
(7) Sections 7 and 8, Executive Order No. 11912 of
April 13, 1976 (41 FR 15825, 15826–27) [42 U.S.C. 6201
note].
(8) Section 3, Executive Order No. 12148 of July 20,
1979 (44 FR 43239, 43241) [42 U.S.C. 5195 note].
(9) Executive Order No. 12521 of June 24, 1985 (50 FR
26335).
(10) Executive Order No. 12649 of August 11, 1988 (53
FR 30639).
(11) Executive Order No. 12773 of September 26, 1991
(56 FR 49387), except that part of the order that
amends section 604 of Executive Order [No.] 10480.
(b) Executive Order No. 10789 of November 14, 1958 [50
U.S.C. 1431 note], is amended by deleting ‘‘and in view
of the existing national emergency declared by Proclamation No. 2914 of December 16, 1950,’’ as it appears in
the first sentence.
(c) Executive Order No. 11790 [15 U.S.C. 761 note], as
amended, relating to the Federal Energy Administration Act of 1974 [15 U.S.C. 761 et seq.], is amended by deleting ‘‘Executive Order No. 10480’’ where it appears in
section 4 and substituting this order’s number.
(d) Subject to subsection 904(c) of this order, to the
extent that any provision of any prior Executive order
is inconsistent with the provisions of this order, this
order shall control and such prior provision is amended
accordingly.
SEC. 905. Judicial Review. This order is not intended to
create any right or benefit, substantive or procedural,
enforceable at law by a party against the United
States, its agencies, its officers, or any person.
WILLIAM J. CLINTON.
[For abolition, transfer of functions, and treatment
of references to United States Arms Control and Disarmament Agency, see section 6511 et seq. of Title 22,
Foreign Relations and Intercourse.]

§ 2154. Regulations and orders
(a) In general
Subject to section 709 [section 2159 of this Appendix] and subsection (b), the President may

§ 2155

prescribe such regulations and issue such orders
as the President may determine to be appropriate to carry out this Act [sections 2061 to 2171
of this Appendix].
(b) Procurement regulations
Any procurement regulation, procedure, or
form issued pursuant to subsection (a) shall be
issued pursuant to section 25 of the Office of
Federal Procurement Policy Act [41 U.S.C. 421],
and shall conform to any governmentwide procurement policy or regulation issued pursuant
to section 6 or 25 of that Act [41 U.S.C. 405, 421].
(Sept. 8, 1950, ch. 932, title VII, § 704, 64 Stat. 816;
July 31, 1951, ch. 275, title I, § 109(c), 65 Stat. 139;
Pub. L. 102–558, title I, § 134, Oct. 28, 1992, 106
Stat. 4212.)
AMENDMENTS
1992—Pub. L. 102–558 amended section generally, substituting present provisions for provisions authorizing
promulgation of rules, regulations, and orders by the
President in order to carry out sections 2061 to 2170 of
this Appendix.
1951—Act July 31, 1951, limited authority to regulate
natural gas where a State agency is handling the matter.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see section 304 of Pub. L.
102–558, set out as a note under section 2062 of this Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
DELEGATION OF FUNCTIONS
Functions of President under act Sept. 8, 1950 [section
2061 et seq. of this Appendix], relating to production,
conservation, use, control, distribution, and allocation
of energy, delegated to Secretary of Energy, see section
4 of Ex. Ord. No. 11790, eff. June 25, 1974, 39 F.R. 23185,
set out as a note under section 761 of Title 15, Commerce and Trade.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 2072 of this Appendix.

§ 2155. Investigations; records; reports; subpoenas; right to counsel
(a) The President shall be entitled, while this
Act [sections 2061 to 2171 of this Appendix] is in
effect and for a period of two years thereafter,
by regulation, subpoena, or otherwise, to obtain
such information from, require such reports and
the keeping of such records by, make such inspection of the books, records, and other writings, premises or property of, and take the
sworn testimony of, and administer oaths and
affirmations to, any person as may be necessary
or appropriate, in his discretion, to the enforcement or the administration of this Act [said sections] and the regulations or orders issued
thereunder. The President shall issue regulations insuring that the authority of this subsection will be utilized only after the scope and
purpose of the investigation, inspection, or inquiry to be made have been defined by competent authority, and it is assured that no adequate and authoritative data are available from

§ 2156

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

any Federal or other responsible agency. In case
of contumacy by, or refusal to obey a subpoena
served upon, any person referred to in this subsection, the district court of the United States
for any district in which such person is found or
resides or transacts business, upon application
by the President, shall have jurisdiction to issue
an order requiring such person to appear and
give testimony or to appear and produce documents, or both; and any failure to obey such
order of the court may be punished by such
court as a contempt thereof.
(b) The production of a person’s books,
records, or other documentary evidence shall
not be required at any place other than the
place where such person usually keeps them, if,
prior to the return date specified in the regulations, subpoena, or other document issued with
respect thereto, such person furnishes the President with a true copy of such books, records, or
other documentary evidence (certified by such
person under oath to be a true and correct copy)
or enters into a stipulation with the President
as to the information contained in such books,
records, or other documentary evidence. Witnesses shall be paid the same fees and mileage
that are paid witnesses in the courts of the
United States.
(c) Any person who willfully performs any act
prohibited or willfully fails to perform any act
required by the above provisions of this section,
or any rule, regulation, or order thereunder,
shall upon conviction be fined not more than
$10,000 or imprisoned for not more than one year
or both.
(d) Information obtained under this section
which the President deems confidential or with
reference to which a request for confidential
treatment is made by the person furnishing such
information shall not be published or disclosed
unless the President determines that the withholding thereof is contrary to the interest of the
national defense, and any person willfully violating this provision shall, upon conviction, be
fined not more than $10,000, or imprisoned for
not more than one year, or both.
(e) Any person subpoenaed under this section
shall have the right to make a record of his testimony and to be represented by counsel.
(Sept. 8, 1950, ch. 932, title VII, § 705, 64 Stat. 816;
July 31, 1951, ch. 275, title I, § 109(d), 65 Stat. 139;
June 30, 1952, ch. 530, title I, § 117, 66 Stat. 306;
June 30, 1953, ch. 171, § 9, 67 Stat. 131; Pub. L.
91–452, title II, § 251, Oct. 15, 1970, 84 Stat. 931;
Pub. L. 102–558, title I, § 142, Oct. 28, 1992, 106
Stat. 4217.)
AMENDMENTS
1992—Subsec. (a). Pub. L. 102–558, § 142(1), substituted
‘‘subpoena’’ for ‘‘subpena’’ in two places.
Subsec. (b). Pub. L. 102–558, § 142(1), (2), redesignated
subsec. (c) as (b) and substituted ‘‘subpoena’’ for ‘‘subpena’’.
Subsec. (c). Pub. L. 102–558, § 142(2), (3), redesignated
subsec. (d) as (c) and substituted ‘‘$10,000’’ for ‘‘$1,000’’.
Former subsec. (c) redesignated (b).
Subsec. (d). Pub. L. 102–558, § 142(2), (4), redesignated
subsec. (e) as (d) and struck out second undesignated
par. which read as follows: ‘‘All information obtained
by the Office of Price Stabilization under this section
705, as amended, and not made public prior to April 30,
1953, shall be deemed confidential and shall not be pub-

Page 256

lished or disclosed, either to the public or to another
Federal agency except the Congress or any duly authorized committee thereof, and except the Department of
Justice for such use as it may deem necessary in the
performance of its functions, unless the President determines that the withholding thereof is contrary to
the interests of the national defense, and any person
willfully violating this provision shall, upon conviction, be fined not more than $10,000 or imprisoned for
not more than one year, or both.’’ Former subsec. (d)
redesignated (c).
Subsecs. (e), (f). Pub. L. 102–558, § 142(2), (5), redesignated subsec. (f) as (e) and substituted ‘‘subpoenaed’’
for ‘‘subpenaed’’. Former subsec. (e) redesignated (d).
1970—Subsec. (b). Pub. L. 91–452 struck out subsec. (b)
which related to immunity from prosecution of any
natural person compelled to testify or produce evidence, documentary or otherwise, after claiming his
privilege against self-incrimination, and that any such
immunity granted would not be construed to vest in
any individual any right to priorities assistance, to the
allocation of materials, or to any other benefit within
the power of the President to grant under sections 2061
to 2166 of this Appendix.
1953—Subsec. (e). Act June 30, 1953, added second par.
1952—Subsec. (f). Act June 30, 1952, added subsec. (f).
1951—Subsec. (a). Act July 31, 1951, made it clear that
President has authority to administer oaths and affirmations.
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see section 304 of Pub. L.
102–558, set out as a note under section 2062 of this Appendix.
EFFECTIVE DATE OF 1970 AMENDMENT
Amendment by Pub. L. 91–452 effective on sixtieth
day following Oct. 15, 1970, and not to affect any immunity to which any individual is entitled under this section by reason of any testimony given before sixtieth
day following Oct. 15, 1970, see section 260 of Pub. L.
91–452, set out as an Effective Date; Savings Provision
note under section 6001 of Title 18, Crimes and Criminal
Procedure.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
DELEGATION OF FUNCTIONS
Functions of President under act Sept. 8, 1950 [section
2061 et seq. of this Appendix], relating to production,
conservation, use, control, distribution, and allocation
of energy, delegated to Secretary of Energy, see section
4 of Ex. Ord. No. 11790, June 25, 1974, 39 F.R. 23185, set
out as a note under section 761 of Title 15, Commerce
and Trade.
CROSS REFERENCES
Immunity of witnesses, see section 6001 et seq. of
Title 18, Crimes and Criminal Procedure.

§ 2156. Jurisdiction of courts; injunctions; venue;
process; effect of termination of provisions
(a) Whenever in the judgment of the President
any person has engaged or is about to engage in
any acts or practices which constitute or will
constitute a violation of any provision of this
Act [sections 2061 to 2171 of this Appendix], he
may make application to the appropriate court
for an order enjoining such acts or practices, or
for an order enforcing compliance with such provision, and upon a showing by the President
that such person has engaged or is about to engage in any such acts or practices a permanent

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

or temporary injunction, restraining order, or
other order, with or without such injunction or
restraining order, shall be granted without bond.
(b) The district courts of the United States
and the United States courts of any Territory or
other place subject to the jurisdiction of the
United States shall have jurisdiction of violations of this Act [sections 2061 to 2171 of this Appendix] or any rule, regulation, order, or subpena thereunder, and of all civil actions under
this Act [said sections] to enforce any liability
or duty created by, or to enjoin any violation of,
this Act [said sections] or any rule, regulation,
order, or subpena thereunder. Any criminal proceeding on account of any such violation may be
brought in any district in which any act, failure
to act, or transaction constituting the violation
occurred. Any such civil action may be brought
in any such district or in the district in which
the defendant resides or transacts business.
Process in such cases, criminal or civil, may be
served in any district wherein the defendant resides or transacts business or wherever the defendant may be found; the subpena for witnesses
who are required to attend a court in any district in such case may run into any other district. The termination of the authority granted
in any title or section of this Act [said sections],
or of any rule, regulation, or order issued thereunder, shall not operate to defeat any suit, action, or prosecution, whether theretofore or
thereafter commenced, with respect to any
right, liability, or offense incurred or committed
prior to the termination date of such title or of
such rule, regulation, or order. No costs shall be
assessed against the United States in any proceeding under this Act [said sections]. All litigation arising under this Act [said sections] or the
regulations promulgated thereunder shall be
under the supervision and control of the Attorney General.
(Sept. 8, 1950, ch. 932, title VII, § 706, 64 Stat. 817;
July 31, 1951, ch. 275, title I, § 109(e), 65 Stat. 139.)
AMENDMENTS
1951—Subsec. (a). Act July 31, 1951, broadened relief a
court may grant when Government seeks to enjoin violations.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
DELEGATION OF FUNCTIONS
Functions of President under act Sept. 8, 1950 [section
2061 et seq. of this Appendix], relating to production,
conservation, use, control, distribution, and allocation
of energy, delegated to Secretary of Energy, see section
4 of Ex. Ord. No. 11790, June 25, 1974, 39 F.R. 23185, set
out as a note under section 761 of Title 15, Commerce
and Trade.

§ 2157. Liability for compliance with invalid regulations; discrimination against orders or
contracts affected by priorities or allocations
No person shall be held liable for damages or
penalties for any act or failure to act resulting
directly or indirectly from compliance with a
rule, regulation, or order issued pursuant to this
Act [sections 2061 to 2171 of this Appendix], notwithstanding that any such rule, regulation, or
order shall thereafter be declared by judicial or

§ 2158

other competent authority to be invalid. No person shall discriminate against orders or contracts to which priority is assigned or for which
materials or facilities are allocated under title I
of this Act [sections 2071 to 2078 of this Appendix] or under any rule, regulation, or order issued thereunder, by charging higher prices or by
imposing different terms and conditions for such
orders or contracts than for other generally
comparable orders or contracts, or in any other
manner.
(Sept. 8, 1950, ch. 932, title VII, § 707, 64 Stat. 818;
June 30, 1952, ch. 530, title I, § 118, 66 Stat. 306.)
AMENDMENTS
1952—Act June 30, 1952, in first sentence struck out
‘‘his’’ before ‘‘compliance with’’.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.

§ 2158. Voluntary agreements and plans of action
for preparedness programs and expansion of
production capacity and supply
(a) Immunity from civil and criminal liability or
defense to action under antitrust laws; exceptions
Except as specifically provided in subsection
(j) of this section, no provision of this Act [sections 2061 to 2171 of this Appendix] shall be
deemed to convey to any person any immunity
from civil or criminal liability, or to create defenses to actions, under the antitrust laws.
(b) Definitions
For purposes of this Act [sections 2061 to 2171
of this Appendix]—
(1) Antitrust laws
The term ‘‘antitrust laws’’ has the meaning
given to such term in subsection (a) of the
first section of the Clayton Act [15 U.S.C.
12(a)], except that such term includes section
5 of the Federal Trade Commission Act [15
U.S.C. 45] to the extent that such section 5 applies to unfair methods of competition.
(2) Plan of action
The term ‘‘plan of action’’ means any of 1 or
more documented methods adopted by participants in an existing voluntary agreement to
implement that agreement.
(c) Prerequisites for agreements and plans of action; delegation of authority to Presidential
designees
(1) Upon finding that conditions exist which
may pose a direct threat to the national defense
or its preparedness programs, the President may
consult with representatives of industry, business, financing, agriculture, labor, and other interests in order to provide for the making by
such persons, with the approval of the President,
of voluntary agreements and plans of action to
help provide for the defense of the United States
through the development of preparedness programs and the expansion of productive capacity
and supply beyond levels needed to meet essential civilian demand in the United States.
(2) The authority granted to the President in
paragraph (1) and subsection (d) may be dele-

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

gated by him (A) to individuals who are appointed by and with the advice and consent of
the Senate, or are holding offices to which they
have been appointed by and with the advice and
consent of the Senate, (B) upon the condition
that such individuals consult with the Attorney
General and with the Federal Trade Commission
not less than ten days before consulting with
any persons under paragraph (1), and (C) upon
the condition that such individuals obtain the
prior approval of the Attorney General, after
consultation by the Attorney General with the
Federal Trade Commission, to consult under
paragraph (1).
(d) Advisory committees; establishment; applicable provisions; membership; notice and participation in meetings; verbatim transcript;
availability to public
(1) To achieve the objectives of subsection
(c)(1) of this section, the President or any individual designated pursuant to subsection (c)(2)
may provide for the establishment of such advisory committees as he determines are necessary.
In addition to the requirements specified in this
section and except as provided in subsection (n),
any such advisory committee shall be subject to
the provisions of the Federal Advisory Committee Act, whether or not such Act or any of its
provisions expire or terminate during the term
of this Act [sections 2061 to 2171 of this Appendix] or of such committees, and in all cases such
advisory committees shall be chaired by a Federal employee (other than an individual employed pursuant to section 3109 of title 5, United
States Code) and shall include representatives of
the public. The Attorney General and the Federal Trade Commission shall have adequate advance notice of any meeting and may have an
official representative attend and participate in
any such meeting.
(2) A full and complete verbatim transcript
shall be kept of such advisory committee meetings, and shall be taken and deposited, together
with any agreement resulting therefrom, with
the Attorney General and the Federal Trade
Commission. Such transcript and agreement
shall be made available for public inspection and
copying, subject to the provisions of paragraphs
(1), (3), and (4) of section 552(b) of title 5, United
States Code.
(e) Rules; promulgation by Presidential designees; consultation by Attorney General
with Chairman of Federal Trade Commission; approval of Attorney General; procedures; incorporation of standards and procedures for development of agreements and
plans of action
(1) The individual or individuals referred to in
subsection (c)(2) shall, after approval of the Attorney General, after consultation by the Attorney General with the Chairman of the Federal
Trade Commission, promulgate rules, in accordance with section 553 of title 5, United States
Code, incorporating standards and procedures by
which voluntary agreements and plans of action
may be developed and carried out.
(2) In addition to the requirements of section
553 of title 5, United States Code—
(A) general notice of the proposed rulemaking referred to in paragraph (1) shall be

Page 258

published in the Federal Register, and such
notice shall include—
(i) a statement of the time, place, and nature of the proposed rulemaking proceedings;
(ii) reference to the legal authority under
which the rule is being proposed; and
(iii) either the terms of substance of the
proposed rule or a description of the subjects
and issues involved;
(B) the required publication of a rule shall
be made not less than thirty days before its effective date; and
(C) the individual or individuals referred to
in paragraph (1) shall give interested persons
the right to petition for the issuance, amendment, or repeal of a rule.
(3) The rules promulgated pursuant to this
subsection incorporating standards and procedures by which voluntary agreements may be
developed shall provide, among other things,
that—
(A) such agreements shall be developed at
meetings which include—
(i) the Attorney General or his delegate,
(ii) the Chairman of the Federal Trade
Commission or his delegate, and
(iii) an individual designated by the President in subsection (c)(2) or his delegate,
and which are chaired by the individual referred to in clause (iii);
(B) at least seven days prior to any such
meeting, notice of the time, place, and nature
of the meeting shall be published in the Federal Register;
(C) interested persons may submit written
data and views concerning the proposed voluntary agreement, with or without opportunity for oral presentation;
(D) interested persons may attend any such
meeting unless the individual designated by
the President in subsection (c)(2) finds that
the matter or matters to be discussed at such
meeting falls within the purview of matters
described in section 552b(c) of title 5, United
States Code;
(E) a full and verbatim transcript shall be
made of any such meeting and shall be transmitted by the chairman of the meeting to the
Attorney General and to the Chairman of the
Federal Trade Commission;
(F) any voluntary agreement resulting from
the meetings shall be transmitted by the
chairman of the meetings to the Attorney
General, the Chairman of the Federal Trade
Commission, and the Congress; and
(G) any transcript referred to in subparagraph (E) and any voluntary agreement referred to in subparagraph (F) shall be available for public inspection and copying, subject
to paragraphs (1), (3), and (4) of section 552(b)
of title 5, United States Code.
(f) Commencement of agreements and plans of
action; expiration date; extensions
(1) A voluntary agreement or plan of action
may not become effective unless and until—
(A) the individual referred to in subsection
(c)(2) who is to administer the agreement or
plan approves it and certifies, in writing, that

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the agreement or plan is necessary to carry
out the purposes of subsection (c)(1) and submits a copy of such agreement or plan to the
Congress; and
(B) the Attorney General (after consultation
with the Chairman of the Federal Trade Commission) finds, in writing, that such purpose
may not reasonably be achieved through a voluntary agreement or plan of action having less
anticompetitive effects or without any voluntary agreement or plan of action and publishes such finding in the Federal Register.
(2) Each voluntary agreement or plan of action
which becomes effective under paragraph (1)
shall expire two years after the date it becomes
effective (and at two-year intervals thereafter,
as the case may be), unless (immediately prior
to such expiration date) the individual referred
to in subsection (c)(2) who administers the
agreement or plan and the Attorney General
(after consultation with the Chairman of the
Federal Trade Commission) make the certification or finding, as the case may be, described
in paragraph (1) with respect to such voluntary
agreement or plan of action and publish such
certification or finding in the Federal Register,
in which case, the voluntary agreement or plan
of action may be extended for an additional period of two years.
(g) Monitoring of agreements and plans of action
by Attorney General and Chairman of Federal Trade Commission
The Attorney General and the Chairman of the
Federal Trade Commission shall monitor the
carrying out of any voluntary agreement or plan
of action to assure—
(1) that the agreement or plan is carrying
out the purposes of subsection (c)(1);
(2) that the agreement or plan is being carried out under rules promulgated pursuant to
subsection (e);
(3) that the participants are acting in accordance with the terms of the agreement or
plan; and
(4) the protection and fostering of competition and the prevention of anticompetitive
practices and effects.
(h) Required provisions of rules for implementation of agreements and plans of action
The rules promulgated under subsection (e)
with respect to the carrying out of voluntary
agreements and plans of action shall provide—
(1) for the maintenance, by participants in
any voluntary agreement or plan of action, of
documents, minutes of meetings, transcripts,
records, and other data related to the carrying
out of any voluntary agreement or plan of action;
(2) that participants in any voluntary agreement or plan of action agree, in writing, to
make available to the individual designated by
the President in subsection (c)(2) to administer the voluntary agreement or plan of action, the Attorney General and the Chairman
of the Federal Trade Commission for inspection and copying at reasonable times and upon
reasonable notice any item maintained pursuant to paragraph (1);
(3) that any item made available to the individual designated by the President in sub-

§ 2158

section (c)(2) to administer the voluntary
agreement or plan of action, the Attorney
General, or the Chairman of the Federal Trade
Commission pursuant to paragraph (2) shall be
available from such individual, the Attorney
General, or the Chairman of the Federal Trade
Commission, as the case may be, for public inspection and copying, subject to paragraph (1),
(3), or (4) of section 552(b) of title 5, United
States Code;
(4) that the individual designated by the
President in subsection (c)(2) to administer
the voluntary agreement or plan of action, the
Attorney General, and the Chairman of the
Federal Trade Commission, or their delegates,
may attend meetings to carry out any voluntary agreement or plan of action;
(5) that a Federal employee (other than an
individual employed pursuant to section 3109
of title 5 of the United States Code) shall attend meetings to carry out any voluntary
agreement or plan of action;
(6) that participants in any voluntary agreement or plan of action provide the individual
designated by the President in subsection
(c)(2) to administer the voluntary agreement
or plan of action, the Attorney General, and
the Chairman of the Federal Trade Commission with adequate prior notice of the time,
place, and nature of any meeting to be held to
carry out the voluntary agreement or plan of
action;
(7) for the attendance by interested persons
of any meeting held to carry out any voluntary agreement or plan of action, unless the
individual designated by the President in subsection (c)(2) to administer the voluntary
agreement or plan of action finds that the
matter or matters to be discussed at such
meeting falls within the purview of matters
described in section 552b(c) of title 5, United
States Code;
(8) that the individual designated by the
President in subsection (c)(2) to administer
the voluntary agreement or plan of action has
published in the Federal Register prior notification of the time, place, and nature of any
meeting held to carry out any voluntary
agreement or plan of action, unless he finds
that the matter or matters to be discussed at
such meeting falls within the purview of matters described in section 552b(c) of title 5,
United States Code, in which case, notification of the time, place, and nature of such
meeting shall be published in the Federal Register within ten days of the date of such meeting;
(9) that—
(A) the Attorney General (after consultation with the Chairman of the Federal Trade
Commission and the individual designated
by the President in subsection (c)(2) to administer a voluntary agreement or plan of
action), or
(B) the individual designated by the President in subsection (c)(2), to administer a voluntary agreement or plan of action (after
consultation with the Attorney General and
the Chairman of the Federal Trade Commission),
may terminate or modify, in writing, the voluntary agreement or plan of action at any

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

time, and that effective, immediately upon
such termination or modification, any antitrust immunity conferred upon the participants in the voluntary agreement or plan of
action by subsection (j) shall not apply to any
act or omission occurring after the time of
such termination or modification;
(10) that participants in any voluntary
agreement or plan of action be reasonably representative of the appropriate industry or segment of such industry; and
(11) that the individual designated by the
President in subsection (c)(2) to administer
the voluntary agreement or plan of action
shall provide prior written notification of the
time, place, and nature of any meeting to
carry out a voluntary agreement or plan of action to the Attorney General, the Chairman of
the Federal Trade Commission and the Congress.
(i) Rules; promulgation by Attorney General and
Chairman of Federal Trade Commission
The Attorney General and the Chairman of the
Federal Trade Commission shall each promulgate such rules as each deems necessary or appropriate to carry out his responsibility under
this section.
(j) Defenses
(1) In general
Subject to paragraph (4), there shall be
available as a defense for any person to any
civil or criminal action brought under the
antitrust laws (or any similar law of any
State) with respect to any action taken to develop or carry out any voluntary agreement or
plan of action under this section that—
(A) such action was taken—
(i) in the course of developing a voluntary agreement initiated by the President or a plan of action adopted under any
such agreement; or
(ii) to carry out a voluntary agreement
initiated by the President and approved in
accordance with this section or a plan of
action adopted under any such agreement,
and
(B) such person—
(i) complied with the requirements of
this section and any regulation prescribed
under this section; and
(ii) acted in accordance with the terms
of the voluntary agreement or plan of action.
(2) Scope of defense
Except in the case of actions taken to develop a voluntary agreement or plan of action,
the defense established in paragraph (1) shall
be available only if and to the extent that the
person asserting the defense demonstrates
that the action was specified in, or was within
the scope of, an approved voluntary agreement
initiated by the President and approved in accordance with this section or a plan of action
adopted under any such agreement and approved in accordance with this section. The
defense established in paragraph (1) shall not
be available unless the President or the President’s designee has authorized and actively su-

Page 260

pervised the voluntary agreement or plan of
action.
(3) Burden of persuasion
Any person raising the defense established
in paragraph (1) shall have the burden of proof
to establish the elements of the defense.
(4) Exception for actions taken to violate the
antitrust laws
The defense established in paragraph (1)
shall not be available if the person against
whom the defense is asserted shows that the
action was taken for the purpose of violating
the antitrust laws.
(k) Surveys and studies by Attorney General and
Federal Trade Commission; content; annual
report to Congress and President by Attorney General
The Attorney General and the Federal Trade
Commission shall each make surveys for the
purpose of determining any factors which may
tend to eliminate competition, create or
strengthen monopolies, injure small business, or
otherwise promote undue concentration of economic power in the course of the administration
of this section. Such surveys shall include studies of the voluntary agreements and plans of action authorized by this section. The Attorney
General shall (after consultation with the Federal Trade Commission) submit to the Congress
and the President at least once every year reports setting forth the results of such studies of
voluntary agreements and plans of action.
(l) Annual report to Congress and President by
Presidential designees; contents
The individual or individuals designated by
the President in subsection (c)(2) shall submit to
the Congress and the President at least once
every year reports describing each voluntary
agreement or plan of action in effect and its
contribution to achievement of the purpose of
subsection (c)(1).
(m) Jurisdiction to enjoin statutory exemption or
suspension and order for production of transcripts, etc.; procedures
On complaint, the United States District
Court for the District of Columbia shall have jurisdiction to enjoin any exemption or suspension
pursuant to subsections (d)(2), (e)(3)(D) and (G),
and (h)(3), (7), and (8), and to order the production of transcripts, agreements, items, or other
records maintained pursuant to this section by
the Attorney General, the Federal Trade Commission or any individual designated under subsection (c)(2), where the court determines that
such transcripts, agreements, items, or other
records have been improperly withheld from the
complainant. In such a case the court shall determine the matter de novo, and may examine
the contents of such transcripts, agreements,
items, or other records in camera to determine
whether such transcripts, agreements, items, or
other records or any parts thereof shall be withheld under any of the exemption or suspension
provisions referred to in this subsection, and the
burden is on the Attorney General, the Federal
Trade Commission, or such designated individual, as the case may be, to sustain its action.

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

(n) Exemption from Advisory Committee Act provisions
Notwithstanding any other provision of law,
any activity conducted under a voluntary agreement or plan of action approved pursuant to this
section, when conducted in compliance with the
requirements of this section, any regulation prescribed under this subsection, and the provisions
of the voluntary agreement or plan of action,
shall be exempt from the Federal Advisory Committee Act and any other Federal law and any
Federal regulation relating to advisory committees.
(o) Preemption of contract law in emergencies
In any action in any Federal or State court for
breach of contract, there shall be available as a
defense that the alleged breach of contract was
caused predominantly by action taken during an
emergency to carry out a voluntary agreement
or plan of action authorized and approved in accordance with this section. Such defense shall
not release the party asserting it from any obligation under applicable law to mitigate damages
to the greatest extent possible.
(Sept. 8, 1950, ch. 932, title VII, § 708, 64 Stat. 818;
June 30, 1952, ch. 530, title I, § 116(c), 66 Stat. 305;
Aug. 9, 1955, ch. 655, § 6, 69 Stat. 581; Pub. L.
87–305, § 5(b), Sept. 26, 1961, 75 Stat. 667; Pub. L.
91–151, title I, § 9, Dec. 23, 1969, 83 Stat. 376; Pub.
L. 94–152, § 3, Dec. 16, 1975, 89 Stat. 810; Pub. L.
102–99, § 5, Aug. 17, 1991, 105 Stat. 487.)
REFERENCES IN TEXT
The Federal Advisory Committee Act, referred to in
subsecs. (d)(1) and (n), is Pub. L. 92–463, Oct. 6, 1972, 86
Stat. 770, as amended, which is set out in the Appendix
to Title 5, Government Organization and Employees.
AMENDMENTS
1991—Subsec. (a). Pub. L. 102–99, § 5(1), struck out
‘‘and subsection (j) of section 708A’’ after ‘‘subsection
(j) of this section’’.
Subsec. (b). Pub. L. 102–99, § 5(2), added subsec. (b) and
struck out former subsec. (b) which read as follows: ‘‘As
used in this section and section 708A the term ‘antitrust laws’ means—
‘‘(1) the Act entitled ‘An Act to protect trade and
commerce against unlawful restraints and monopolies’, approved July 2, 1890 (15 U.S.C. 1 et seq.);
‘‘(2) the Act entitled ‘An act to supplement existing
laws against unlawful restraints and monopolies and
for other purposes’, approved October 15, 1914 (15
U.S.C. 12 et seq.);
‘‘(3) the Federal Trade Commission Act (15 U.S.C. 41
et seq.);
‘‘(4) sections 73 and 74 of the Act entitled ‘An Act
to reduce taxation, to provide revenue for the Government, and for other purposes’, approved August 27,
1894 (15 U.S.C. 8 and 9);
‘‘(5) the Act of June 19, 1936, chapter 592 (15 U.S.C.
13, 13a, 13b, and 21a); and
‘‘(6) the Act entitled ‘An Act to promote export
trade and for other purposes’, approved April 10, 1918
(15 U.S.C. 61–65).’’
Subsec. (c)(1). Pub. L. 102–99, § 5(3), inserted ‘‘and
plans of action’’ after ‘‘voluntary agreements’’ and substituted ‘‘Upon’’ for ‘‘Except as otherwise provided in
section 708A(o), upon’’.
Subsec. (c)(2). Pub. L. 102–99, § 5(4), struck out at end
‘‘For the purpose of carrying out the objectives of title
I of this Act, the authority granted in paragraph (1) of
this subsection shall not be delegated to more than one
individual.’’
Subsec. (d)(1). Pub. L. 102–99, § 5(5), inserted ‘‘and except as provided in subsection (n)’’ after ‘‘specified in

§ 2158

this section’’ and struck out ‘‘, and the meetings of
such committees shall be open to the public’’ after
‘‘representatives of the public’’.
Subsec. (d)(2). Pub. L. 102–99, § 5(6), substituted ‘‘paragraphs (1), (3), and (4) of section 552(b)’’ for ‘‘section
552(b)(1) and (b)(3)’’.
Subsec. (e)(1). Pub. L. 102–99, § 5(7), substituted ‘‘voluntary agreements and plans of action’’ for ‘‘voluntary
agreements’’.
Subsec. (e)(3)(D). Pub. L. 102–99, § 5(8), substituted
‘‘section 552b(c)’’ for ‘‘subsection (b)(1) or (b)(3) of section 552’’.
Subsec. (e)(3)(F). Pub. L. 102–99, § 5(9), inserted reference to Congress.
Subsec. (e)(3)(G). Pub. L. 102–99, § 5(10), substituted
‘‘paragraphs (1), (3), and (4) of section 552(b)’’ for ‘‘subsections (b)(1) and (b)(3) of section 552’’.
Subsec. (f)(1). Pub. L. 102–99, § 5(11)(A), inserted ‘‘or
plan of action’’ after ‘‘voluntary agreement’’.
Subsec. (f)(1)(A). Pub. L. 102–99, § 5(12), inserted ‘‘and
submits a copy of such agreement or plan to the Congress’’ after ‘‘subsection (c)(1)’’.
Pub. L. 102–99, § 5(11)(B), inserted ‘‘or plan’’ after ‘‘the
agreement’’ wherever appearing.
Subsec. (f)(1)(B). Pub. L. 102–99, § 5(13), inserted before
period ‘‘and publishes such finding in the Federal Register’’.
Pub. L. 102–99, § 5(11)(A), inserted ‘‘or plan of action’’
after ‘‘voluntary agreement’’ wherever appearing.
Subsec. (f)(2). Pub. L. 102–99, § 5(14), inserted ‘‘and
publish such certification or finding in the Federal
Register’’ before ‘‘, in which case’’.
Pub. L. 102–99, § 5(11), inserted ‘‘or plan’’ after ‘‘the
agreement’’, and ‘‘or plan of action’’ after ‘‘voluntary
agreement’’ wherever appearing.
Subsec. (g). Pub. L. 102–99, § 5(11)(A), inserted ‘‘or plan
of action’’ after ‘‘voluntary agreement’’.
Subsec. (g)(1) to (3). Pub. L. 102–99, § 5(11)(B), inserted
‘‘or plan’’ after ‘‘the agreement’’.
Subsec. (h). Pub. L. 102–99, § 5(15)(A), inserted ‘‘and
plans of action’’ after ‘‘voluntary agreements’’.
Subsec. (h)(1), (2). Pub. L. 102–99, § 5(15)(B), inserted
‘‘or plan of action’’ after ‘‘voluntary agreement’’ wherever appearing.
Subsec. (h)(3). Pub. L. 102–99, § 5(16), substituted
‘‘paragraph (1), (3), or (4) of section 552(b)’’ for ‘‘subsections (b)(1) and (b)(3) of section 552’’.
Pub. L. 102–99, § 5(15)(B), inserted ‘‘or plan of action’’
after ‘‘voluntary agreement’’.
Subsec. (h)(4) to (6). Pub. L. 102–99, § 5(15)(B), inserted
‘‘or plan of action’’ after ‘‘voluntary agreement’’ wherever appearing.
Subsec. (h)(7), (8). Pub. L. 102–99, § 5(15)(B), (17), inserted ‘‘or plan of action’’ after ‘‘voluntary agreement’’
wherever appearing and substituted ‘‘section 552b(c)’’
for ‘‘subsection (b)(1) or (b)(3) of section 552’’.
Subsec. (h)(9), (10). Pub. L. 102–99, § 5(15)(B), inserted
‘‘or plan of action’’ after ‘‘voluntary agreement’’ wherever appearing.
Subsec. (h)(11). Pub. L. 102–99, § 5(15)(C)–(E), added
par. (11).
Subsec. (j). Pub. L. 102–99, § 5(18), added subsec. (j) and
struck out former subsec. (j) which read as follows:
‘‘There shall be available as a defense for any person to
any civil or criminal action brought for violation of the
antitrust laws (or any similar law of any State) with
respect to any act or omission to act to develop or
carry out any voluntary agreement under this section
that—
‘‘(1) such act or omission to act was taken in good
faith by that person—
‘‘(A) in the course of developing a voluntary
agreement under this section, or
‘‘(B) to carry out a voluntary agreement under
this section; and
‘‘(2) such person fully complied with this section
and the rules promulgated hereunder, and acted in
accordance with the terms of the voluntary agreement.’’
Subsec. (k). Pub. L. 102–99, § 5(19), inserted ‘‘and plans
of action’’ after ‘‘voluntary agreements’’ wherever appearing.

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

Subsec. (l). Pub. L. 102–99, § 5(20), inserted ‘‘or plan of
action’’ after ‘‘voluntary agreement’’.
Subsecs. (n), (o). Pub. L. 102–99, § 5(21), added subsecs.
(n) and (o).
1975—Subsec. (a). Pub. L. 94–152 substituted provisions relating to immunity from civil and criminal liability under the antitrust laws for provisions authorizing President to approve voluntary programs and
agreements under section 2061 et seq. of this Appendix.
Subsec. (b). Pub. L. 94–152 substituted definition of
‘‘antitrust laws’’ for provisions exempting under certain conditions acts or omissions to act pursuant to
section 2061 et seq. of this Appendix from the antitrust
laws or the Federal Trade Commission Act.
Subsec. (c). Pub. L. 94–152 restructured subsec. (c)
into pars. (1) and (2), and, as so restructured, inserted
provisions of par. (1) authorizing President to consult
with leaders of industry, finance, agriculture and labor
with a view to developing voluntary agreements to help
provide for the defense of the United States whenever
he finds conditions exist which pose a threat to the national defense or preparedness programs and transferred existing provisions to par. (2), and, as transferred, substituted provisions which authorized President to delegate authority granted to him in par. (1) of
this subsection and under subsec. (d) of this section, for
provisions authorizing delegation of authority of subsec. (b) of this section.
Subsec. (d). Pub. L. 94–152 substituted provisions relating to establishment, membership, meetings, transcripts, etc. of advisory committees, for provisions relating to application of this section to acts or omissions to act after withdrawal of any request or finding
under this section or withdrawal of approval of Attorney General.
Subsec. (e). Pub. L. 94–152 substituted provisions relating to promulgation of rules for voluntary agreements, procedures for promulgation and required provisions, for provisions relating to monitoring by Attorney General of agreements in force and reports to
President and Congress.
Subsecs. (f) to (m). Pub. L. 94–152 added subsecs. (f) to
(m).
1969—Subsec. (b). Pub. L. 91–151, § 9(a), struck out provision under which exemption from prohibitions of
antitrust laws and application of Federal Trade Commission Act had been limited to only those voluntary
agreements covering military equipment purchased by
Defense Department.
Subsec. (f). Pub. L. 91–151, § 9(b), struck out subsec. (f)
which prohibited approval of voluntary credit control
agreements under this section after June 30, 1952.
1961—Subsec. (e). Pub. L. 87–305 struck out ‘‘, and the
reports hereafter required,’’ after ‘‘Such surveys’’ and
‘‘within ninety days after the approval of this Act
[Sept. 8, 1950], and’’ after ‘‘President’’ and substituted
‘‘studies of voluntary agreements and programs authorized by this section’’ for ‘‘such surveys and including
such recommendations as he may deem desirable’’.
1955—Subsec. (b). Act Aug. 9, 1955, § 6(1), inserted proviso.
Subsec. (d). Act Aug. 9, 1955, § 6(2), exempted subsequent acts or omissions to act upon withdrawal by Attorney General of his approval of voluntary agreement
or program.
Subsec. (e). Act Aug. 9, 1955, § 6(3), (4), included studies of voluntary agreements and programs in surveys
and reports, and required Attorney General to report to
Congress at least once every three months.
1952—Subsec. (f). Act June 30, 1952, added subsec. (f).
EFFECTIVE DATE OF 1991 AMENDMENT
Amendment by Pub. L. 102–99 effective Oct. 20, 1990,
see section 7 of Pub. L. 102–99, set out as a note under
section 2071 of this Appendix.
EFFECTIVE DATE OF 1975 AMENDMENT
Section 9 of Pub. L. 94–152, as amended by Pub. L.
94–153, Dec. 16, 1975, 89 Stat. 822; Pub. L. 94–220, Feb. 27,

Page 262

1976, 90 Stat. 195, provided that: ‘‘This Act and the
amendments made by it [enacting section 2158a of this
Appendix, amending sections 2160, 2162, 2166, 2168, and
2169 of this Appendix, and enacting provisions set out
as notes under this section and section 2061 of this Appendix] shall take effect at the close of November 30,
1975, except that the amendment made by section 3
[amending this section] shall take effect upon the one
hundred and twentieth day beginning after the date of
its enactment [Dec. 16, 1975].’’
EFFECTIVE DATE OF 1955 AMENDMENT
Amendment by act Aug. 9, 1955, effective as of the
close of July 31, 1955, see section 11 of act Aug. 9, 1955,
set out as a note under section 2062 of this Appendix.
TERMINATION DATE
Provision for termination of section on June 30, 1972,
eliminated in amendment by Pub. L. 92–15, § 2, May 18,
1971, 85 Stat. 38, of section 2166(a) of this Appendix.
DELEGATION OF FUNCTIONS
Functions conferred upon President under this section necessary to effect changes in composition of, or
to take other action respecting voluntary agreements
and programs relating to, small business production
pools approved prior to July 31, 1953, delegated to Administrator of Small Business Administration by Ex.
Ord. No. 10493, Oct. 14, 1953, 18 F.R. 6583, set out as a
note under section 640 of Title 15, Commerce and Trade.
Functions of President under act Sept. 8, 1950 [section
2061 et seq. of this Appendix], relating to production,
conservation, use, control, distribution, and allocation
of energy, delegated to Secretary of Energy, see section
4 of Ex. Ord. No. 11790, June 25, 1974, 39 F.R. 23185, set
out as a note under section 761 of Title 15.
For delegation of authority of President under subsecs. (c) and (d) of this section to heads of each Federal
department or agency, see sections 501 and 502 of Ex.
Ord. No. 12919, June 3, 1994, 59 F.R. 29525, set out as a
note under section 2153 of this Appendix.
CONTINUATION IN EFFECT OF EXISTING VOLUNTARY
AGREEMENTS
Section 4 of Pub. L. 94–152 provided that:
‘‘(a) Any voluntary agreement—
‘‘(1) entered into under section 708 of the Defense
Production Act of 1950 [this section] prior to the effective date of this Act [see Effective Date of 1975
Amendment note below], and
‘‘(2) in effect immediately prior to such date may
continue in effect (except as otherwise provided in
section 708A(o) of the Defense Production Act of 1950,
as amended by this Act) [former section 2158a(o) of
this Appendix] and shall be carried out in accordance
with such section 708, as amended by this Act, and
such section 708A.
‘‘(b) No provision of the Defense Production Act of
1950, as amended by this Act [see Short Title of 1975
Amendment note set out under section 2061 of this Appendix] shall be construed as granting immunity for,
nor as limiting or in any way affecting any remedy or
penalty which may result from any legal action or proceeding arising from, any acts or practices which occurred (1) prior to the date of enactment of this Act
[Dec. 16, 1975], (2) outside the scope and purpose or not
in compliance with the terms and conditions of the Defense Production Act of 1950 [see section 2061 of this Appendix], or (3) subsequent to the expiration or repeal of
the Defense Production Act of 1950.
‘‘(c) Effective on the date of enactment of this Act
[Dec. 16, 1975], the immunity conferred by section 708 or
708A of the Defense Production Act of 1950, as amended
by this Act [this section and section 2158a of this Appendix], shall not apply to any action taken or authorized to be taken by or under the Emergency Petroleum
Allocation Act of 1973 [section 751 et seq. of Title 15,
Commerce and Trade].’’

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

TERMINATION OF ADVISORY COMMITTEES
Advisory committees in existence on Jan. 5, 1973, to
terminate not later than the expiration of the 2-year
period following Jan. 5, 1973, unless, in the case of a
committee established by the President or an officer of
the Federal Government, such committee is renewed by
appropriate action prior to the expiration of such 2year period, or in the case of a committee established
by the Congress, its duration is otherwise provided by
law. Advisory committees established after Jan. 5, 1973,
to terminate not later than the expiration of the 2-year
period beginning on the date of their establishment,
unless, in the case of a committee established by the
President or an officer of the Federal Government, such
committee is renewed by appropriate action prior to
the expiration of such 2-year period, or in the case of
a committee established by the Congress, its duration
is otherwise provided by law. See section 14 of Pub. L.
92–463, Oct. 6, 1972, 86 Stat. 776, set out in the Appendix
to Title 5, Government Organization and Employees.

§ 2160

(3) Consideration of public comments
All comments received during the public
comment period specified pursuant to paragraph (1) or (2) shall be considered and the
publication of the final regulation shall contain written responses to such comments.
(c) Public comment on procurement regulations
Any procurement policy, regulation, procedure, or form (including any amendment or
modification of any such policy, regulation, procedure, or form) issued under this Act [sections
2061 to 2171 of this Appendix] shall be subject to
section 22 of the Office of Federal Procurement
Policy Act [41 U.S.C. 418b].
(Sept. 8, 1950, ch. 932, title VII, § 709, 64 Stat. 819;
Pub. L. 102–558, title I, § 136(a), Oct. 28, 1992, 106
Stat. 4216.)

SECTION REFERRED TO IN OTHER SECTIONS

REFERENCES IN TEXT

This section is referred to in section 2166 of this Appendix; title 42 section 6272.

The Administrative Procedure Act, referred to in subsec. (a), was repealed by Pub. L. 89–554, § 8(a), Sept. 6,
1966, 80 Stat. 632, and reenacted by the first section
thereof principally in subchapter II (§ 551 et seq.) of
chapter 5, and chapter 7 (§ 701 et seq.), of Title 5, Government Organization and Employees.

§ 2158a. Repealed. Pub. L. 102–99, § 4, Aug. 17,
1991, 105 Stat. 487
Section, act Sept. 8, 1950, ch. 932, title VII, § 708A, as
added Dec. 16, 1975, Pub. L. 94–152, § 3, 89 Stat. 815, related to voluntary agreements and plans of action for
international agreements for international allocation
of petroleum products and related information systems.
EFFECTIVE DATE OF REPEAL
Repeal effective Oct. 20, 1990, see section 7 of Pub. L.
102–99, set out as an Effective Date of 1991 Amendment
note under section 2071 of this Appendix.

§ 2159. Public participation in rulemaking
(a) Exemption from Administrative Procedure
Act
Any regulation issued under this Act [sections
2061 to 2171 of this Appendix] shall not be subject
to sections 551 through 559 of title 5, United
States Code.
(b) Opportunity for notice and comment
(1) In general
Except as provided in subsection (c), any
regulation issued under this Act [sections 2061
to 2171 of this Appendix] shall be published in
the Federal Register and opportunity for public comment shall be provided for not less
than 30 days, consistent with the requirements
of section 553(b) of title 5, United States Code.
(2) Waiver for temporary provisions
The requirements of paragraph (1) may be
waived, if—
(A) the officer authorized to issue the regulation finds that urgent and compelling circumstances make compliance with such requirements impracticable;
(B) the regulation is issued on a temporary
basis; and
(C) the publication of such temporary regulation is accompanied by the finding made
under subparagraph (A) (and a brief statement of the reasons for such finding) and an
opportunity for public comment is provided
for not less than 30 days before any regulation becomes final.

AMENDMENTS
1992—Pub. L. 102–558 amended section generally. Prior
to amendment, section read as follows: ‘‘The functions
exercised under this Act shall be excluded from the operation of the Administrative Procedure Act (60 Stat.
237) except as to the requirements of section 3 thereof.
Any rule, regulation, or order, or amendment thereto,
issued under authority of this Act shall be accompanied
by a statement that in the formulation thereof there
has been consultation with industry representatives,
including trade association representatives, and that
consideration has been given to their recommendations, or that special circumstances have rendered such
consultation impracticable or contrary to the interest
of the national defense, but no such rule, regulation, or
order shall be invalid by reason of any subsequent finding by judicial or other authority that such a statement is inaccurate.’’
EFFECTIVE DATE OF 1992 AMENDMENT
Section 136(b) of Pub. L. 102–558 provided that: ‘‘Section 709 of the Defense Production Act of 1950 (50 U.S.C.
App. 2159), as amended by subsection (a) of this section,
shall not apply to any regulation issued in proposed or
final form on or before the date of enactment of this
Act [Oct. 28, 1992].’’
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 2154 of this Appendix.

§ 2160. Employment of personnel; appointment
policies; nucleus executive reserve; use of
confidential information by employees; printing and distribution of reports
(a) Repealed. June 28, 1955, ch. 189, § 12(c)(1), 69
Stat. 180.
(b)(1) The President is further authorized, to
the extent he deems it necessary and appropriate in order to carry out the provisions of
this Act [sections 2061 to 2171 of this Appendix]
and subject to such regulations as he may issue,
to employ persons of outstanding experience and
ability without compensation;

§ 2160

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

(2) The President shall be guided in the exercise of the authority provided in this subsection
by the following policies:
(i) So far as possible, operations under the
Act [said sections] shall be carried on by fulltime, salaried employees of the Government,
and appointments under this authority shall
be to advisory or consultative positions only.
(ii) Appointments to positions other than
advisory or consultative may be made under
this authority only when the requirements of
the position are such that the incumbent must
personally possess outstanding experience and
ability not obtainable on a full-time, salaried
basis.
(iii) In the appointment of personnel and in
assignment of their duties, the head of the department or agency involved shall take steps
to avoid, to as great an extent as possible, any
conflict between the governmental duties and
the private interests of such personnel.
(3) Appointees under this subsection shall,
when policy matters are involved, be limited to
advising appropriate full-time salaried Government officials who are responsible for making
policy decisions.
(4) Any person employed under this subsection
is exempted, with respect to such employment,
from the operation of sections 281, 283, 284, 434,
and 1914 1 of title 18, United States Code, and section 190 1 of the Revised Statutes (5 U.S.C. 99),
except that—
(i) exemption hereunder shall not extend to
the negotiation or execution, by such appointee, of Government contracts with the private employer of such appointee or with any
corporation, joint stock company, association,
firm, partnership, or other entity in the pecuniary profits or contracts of which the appointee has any direct or indirect interest;
(ii) exemption hereunder shall not extend to
making any recommendation or taking any
action with respect to individual applications
to the Government for relief or assistance, on
appeal or otherwise, made by the private employer of the appointee or by any corporation,
joint stock company, association, firm, partnership, or other entity in the pecuniary profits or contracts of which the appointee has
any direct or indirect interest;
(iii) exemption hereunder shall not extend to
the prosecution by the appointee, or participation by the appointee in any fashion in the
prosecution, of any claims against the Government involving any matter concerning which
the appointee had any responsibility during
his employment under this subsection, during
the period of such employment and the further
period of two years after the termination of
such employment; and
(iv) exemption hereunder shall not extend to
the receipt or payment of salary in connection
with the appointee’s Government service hereunder from any source other than the private
employer of the appointee at the time of his
appointment hereunder.
(5) Appointments under this subsection shall
be supported by written certification by the
head of the employing department or agency—
1 See

References in Text note below.

Page 264

(i) that the appointment is necessary and appropriate in order to carry out the provisions
of the Act [sections 2061 to 2171 of this Appendix];
(ii) that the duties of the position to which
the appointment is being made require outstanding experience and ability;
(iii) that the appointee has the outstanding
experience and ability required by the position; and
(iv) that the department or agency head has
been unable to obtain a person with the qualifications necessary for the position on a fulltime, salaried basis.
(6) NOTICE AND FINANCIAL DISCLOSURE REQUIREMENTS.—
(A) PUBLIC NOTICE OF APPOINTMENT.—The
head of any department or agency who appoints any individual under this subsection
shall publish a notice of such appointment in
the Federal Register, including the name of
the appointee, the employing department or
agency, the title of the appointee’s position,
and the name of the appointee’s private employer.
(B) FINANCIAL DISCLOSURE.—Any individual
appointed under this subsection who is not required to file a financial disclosure report pursuant to section 101 of the Ethics in Government Act of 1978, shall file a confidential financial disclosure report pursuant to section
107 of that Act with the appointing department or agency.
(7) At least once every three months the Director of the Office of Personnel Management
shall survey appointments made under this subsection and shall report his or her findings to
the President and make such recommendations
as he or she may deem proper.
(8) Persons appointed under the authority of
this subsection may be allowed reimbursement
for travel, subsistence, and other necessary expenses incurred by them in carrying out the
functions for which they were appointed in the
same manner as persons employed intermittently in the Federal Government are allowed
expenses under section 5703 of title 5, United
States Code.
(c) The President is authorized, to the extent
he deems it necessary and appropriate in order
to carry out the provisions of this Act [sections
2061 to 2171 of this Appendix] to employ experts
and consultants or organizations thereof as authorized by section 55a 2 of title 5 of the United
States Code [5 U.S.C. 3109]. Individuals so employed may be compensated at rates not in excess of $50 per diem and while away from their
homes or regular places of business they may be
allowed transportation and not to exceed $15 per
diem in lieu of subsistence and other expenses
while so employed. The President is authorized
to provide by regulation for the exemption of
such persons from the operation of sections 281,
283, 284, 434, and 1914 2 of title 18 of the United
States Code and section 190 2 of the Revised
Statutes (5 U.S.C. 99).
(d) The President may utilize the services of
Federal, State, and local agencies and may uti2 See

References in Text note below.

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

lize and establish such regional, local, or other
agencies, and utilize such voluntary and uncompensated services, as may from time to time be
needed; and he is authorized to provide by regulation for the exemption of persons whose services are utilized under this subsection from the
operation of sections 281, 283, 284, 434, and 1914 2
of title 18 of the United States Code and section
190 2 of the Revised Statutes (5 U.S.C. 99).
(e) The President is further authorized to provide for the establishment and training of a nucleus executive reserve for employment in executive positions in Government during periods of
emergency. Members of this executive reserve
who are not full-time Government employees
may be allowed transportation and per diem in
lieu of subsistence, in accordance with title 5 of
the United States Code (with respect to individuals serving without pay, while away from their
homes or regular places of business), for the purpose of participating in the executive reserve
training program. The President is authorized
to provide by regulation for the exemption of
such persons who are not full-time Government
employees from the operation of sections 281,
283, 284, 434, and 1914 2 of title 18 of the United
States Code and section 190 2 of the Revised
Statutes (5 U.S.C. 99).
(f) Whoever, being an officer or employee of
the United States or any department or agency
thereof (including any Member of the Senate or
House of Representatives), receives, by virtue of
his office or employment, confidential information, and (1) uses such information in speculating directly or indirectly on any commodity exchange, or (2) discloses such information for the
purpose of aiding any other person so to speculate, shall be fined not more than $10,000 or imprisoned not more than one year, or both. As
used in this section, the term ‘‘speculate’’ shall
not include a legitimate hedging transaction, or
a purchase or sale which is accompanied by actual delivery of the commodity.
(g) The President, when he deems such action
necessary, may make provision for the printing
and distribution of reports, in such number and
in such manner as he deems appropriate, concerning the actions taken to carry out the objectives of this Act [sections 2061 to 2171 of this
Appendix].
(Sept. 8, 1950, ch. 932, title VII, § 710, 64 Stat. 819;
July 31, 1951, ch. 275, title I, § 109(f), 65 Stat. 139;
June 28, 1955, ch. 189, § 12(c)(1), 69 Stat. 180; Aug.
9, 1955, ch. 655, §§ 7, 8, 69 Stat. 582, 583; Pub. L.
94–152, § 5, Dec. 16, 1975, 89 Stat. 820; Pub. L.
102–558, title I, § 143, Oct. 28, 1992, 106 Stat. 4217.)
ANNUAL SUBMISSION OF REPORTS
Pub. L. 89–348, § 2(11), Nov. 8, 1965, 79 Stat.
1313, modified the provisions of subsection (b)(7)
of this section to require annual instead of
quarterly submission of the report to the Congress.
REFERENCES IN TEXT
Sections 281 and 283 of title 18, referred to in subsecs.
(b)(4), (c), (d), and (e), were repealed by Pub. L. 87–849,
§ 2, Oct. 23, 1962, 76 Stat. 1126, except as they may apply
to retired officers of the armed forces of the United
States, and were supplanted by sections 203 and 205 of
Title 18, Crimes and Criminal Procedure. For further

§ 2160

details, see Exemptions note set out under section 203
of Title 18.
Sections 284, 434, and 1914 of title 18, referred to in
subsecs. (b)(4), (c), (d), and (e), were repealed by Pub. L.
87–849, § 2, Oct. 23, 1962, 76 Stat. 1126, and were supplanted by sections 207, 208, and 209, respectively, of
Title 18.
Section 190 of the Revised Statutes (5 U.S.C. 99), referred to in subsecs. (b)(4), (c), (d), and (e), was repealed
by Pub. L. 87–849, § 3, Oct. 23, 1962, 76 Stat. 1126. See section 207 of Title 18.
Sections 101 and 107 of the Ethics in Governments Act
of 1978, referred to in subsec. (b)(6)(B), are sections 101
and 107 of Pub. L. 95–521, which are set out in the Appendix to Title 5, Government Organization and Employees.
Section 55a of title 5, referred to in subsec. (c), which
was based on section 15 of act Aug. 2, 1946, ch. 744, 60
Stat. 810, was repealed by Pub. L. 89–554, § 8(a), Sept. 6,
1966, 80 Stat. 632, and reenacted by the first section
thereof as section 3109 of Title 5.
AMENDMENTS
1992—Subsec. (b)(6). Pub. L. 102–558, § 143(a), amended
par. (6) generally. Prior to amendment, par. (6) read as
follows: ‘‘The heads of the departments or agencies
making appointments under this subsection shall file
with the Division of the Federal Register for publication in the Federal Register a statement including the
name of the appointee, the employing department or
agency, the title of his position, and the name of his
private employer, and the appointee shall file with such
Division for publication in the Federal Register a
statement listing the names of any corporations of
which he is an officer or director or within sixty days
preceding his appointment has been an officer or director, or in which he owns, or within sixty days preceding
his appointment has owned, any stocks, bonds, or other
financial interests, and the names of any partnerships
in which he is, or was within sixty days preceding his
appointment, a partner, and the names of any other
businesses in which he owns, or within such sixty-day
period has owned, any similar interest. At the end of
each succeeding six-month period, the appointee shall
file with such Division for publication in the Federal
Register a statement showing any changes in such interests during such period.’’
Subsec. (b)(7). Pub. L. 102–558, § 143(b)(1), substituted
‘‘Director of the Office of Personnel Management’’ for
‘‘Chairman of the United States Civil Service Commission’’ and ‘‘his or her findings’’ for ‘‘his findings’’,
struck out ‘‘and the Joint Committee on Defense Production’’ after ‘‘to the President’’, and substituted ‘‘he
or she may’’ for ‘‘he may’’.
Subsec. (b)(8). Pub. L. 102–558, § 143(b)(2), substituted
‘‘reimbursement for travel, subsistence, and other necessary expenses incurred by them in carrying out the
functions for which they were appointed in the same
manner as persons employed intermittently in the Federal Government are allowed expenses under section
5703 of title 5, United States Code’’ for ‘‘transportation
and not to exceed $15 per diem in lieu of subsistence
while away from their homes or regular places of business pursuant to such appointment’’.
1975—Subsec. (e). Pub. L. 94–152 substituted provisions
authorizing per diem in lieu of subsistence in accordance with provisions of title 5 of the United States
Code with respect to individuals serving without pay
while away from their homes or regular places of business, for provisions authorizing $15 per diem in lieu of
subsistence.
1955—Subsec. (a). Act June 28, 1955, repealed subsec.
(a) which authorized President to place positions and
employ persons temporarily in grades 16, 17, and 18 of
the General Schedule established by Classification Act
of 1949.
Subsec. (b). Act Aug. 9, 1955, § 7, imposed additional
restrictions on employment of persons without compensation by establishing guides to be used by President, requiring written certification, publication of
statements, and a survey of appointments.

§ 2161

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

Subsecs. (e) to (g). Act Aug. 9, 1955, § 8, added subsec.
(e) and redesignated former subsecs. (e) and (f) as (f)
and (g), respectively.
1951—Subsec. (f). Act July 31, 1951, added subsec. (f).
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see section 304 of Pub. L.
102–558, set out as a note under section 2062 of this Appendix.
EFFECTIVE DATE OF 1975 AMENDMENT
Amendment by Pub. L. 94–152 effective at close of
Nov. 30, 1975, see section 9 of Pub. L. 94–152, as amended,
set out as a note under section 2158 of this Appendix.
EFFECTIVE DATE OF 1955 AMENDMENTS
Amendment by act Aug. 9, 1955, effective as of close
of July 31, 1955, see section 11 of act Aug. 9, 1955, set out
as a note under section 2062 of this Appendix.
Amendment by act June 28, 1955, effective June 28,
1955, see section 13(b) of act June 28, 1955.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
DELEGATION OF FUNCTIONS
Functions of President under act Sept. 8, 1950 [section
2061 et seq. of this Appendix], relating to production,
conservation, use, control, distribution, and allocation
of energy, delegated to Secretary of Energy, see section
4 of Ex. Ord. No. 11790, June 25, 1974, 39 F.R. 23185, set
out under section 761 of Title 15, Commerce and Trade.
The head of each department or agency assigned
functions under Ex. Ord. No. 12919 (relating to national
defense industrial resources preparedness) delegated
authority under subsecs. (b) and (c) of this section to
employ persons of outstanding experience and ability
without compensation and to employ experts, consultants, or organizations, with authority so delegated not
to be redelegated, pursuant to section 602 of Ex. Ord.
No. 12919, June 3, 1994, 59 F.R. 29525, set out as a note
under section 2153 of this Appendix.
EXECUTIVE ORDER NO. 10182
Ex. Ord. No. 10182, Nov. 21, 1950, 15 F.R. 8013, as
amended by Ex. Ord. No. 10205, Jan. 16, 1951, 16 F.R. 419,
which provided for appointments and exemptions, was
revoked by Ex. Ord. No. 10647, Nov. 28, 1955, 20 F.R. 8769,
formerly set out below.
EXECUTIVE ORDER NO. 10647
Ex. Ord. No. 10647, Nov. 28, 1955, 20 F.R. 8769, as
amended by Ex. Ord. No. 11355, May 26, 1967, 32 F.R.
7803; Ex. Ord. No. 12107, Dec. 28, 1978, 44 F.R. 1055, which
delegated authority to make appointments, was revoked by section 904(a)(4) of Ex. Ord. No. 12919, June 3,
1994, 59 F.R. 29533, set out as a note under section 2153
of this Appendix.
CROSS REFERENCES
Mutual security program, employment of persons of
outstanding experience and ability for, see section 2386
of Title 22, Foreign Relations and Intercourse.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in title 22 sections 2386,
2581.

§ 2161. Authorization of appropriations; availability of funds
(a) Authorization
Except as provided in subsection (b), there
are hereby authorized to be appropriated such
sums as may be necessary and appropriate for

Page 266

the carrying out of the provisions and purposes of this Act [sections 2061 to 2171 of this
Appendix] (including sections 302 and 303 [sections 2092 and 2093 of this Appendix], but excluding sections 305 and 306 [sections 2095 and
2096 of this Appendix]) by the President and
such agencies as he may designate or create.
Funds made available pursuant to this paragraph for the purposes of this Act [said sections] may be allocated or transferred for any
of the purposes of this Act [said sections], with
the approval of the Office of Management and
Budget, to any agency designated to assist in
carrying out this Act [said sections]. Funds so
allocated or transferred shall remain available
for such period as may be specified in the Acts
making such funds available.
(b) Title III authorization
There are authorized to be appropriated for
each of the fiscal years 1996, 1997, 1998, and 1999,
such sums as may be necessary to carry out title
III [sections 2091 to 2099a of this Appendix].
(Sept. 8, 1950, ch. 932, title VII, § 711, 64 Stat. 820;
Pub. L. 93–426, § 3, Sept. 30, 1974, 88 Stat. 1167;
Pub. L. 96–294, title I, § 105(a), June 30, 1980, 94
Stat. 632; Pub. L. 98–265, § 5, Apr. 17, 1984, 98 Stat.
151; Pub. L. 99–441, § 3, Oct. 3, 1986, 100 Stat. 1117;
Pub. L. 101–137, § 9(b), Nov. 3, 1989, 103 Stat. 826;
Pub. L. 102–99, § 3, Aug. 17, 1991, 105 Stat. 487;
Pub. L. 102–558, title I, §§ 144, 152, 161, Oct. 28,
1992, 106 Stat. 4218, 4219; Pub. L. 104–64, § 3, Dec.
18, 1995, 109 Stat. 689; Pub. L. 105–261, div. A, title
X, § 1072(b), Oct. 17, 1998, 112 Stat. 2137.)
AMENDMENTS
1998—Subsec. (b). Pub. L. 105–261 substituted ‘‘1998,
and 1999’’ for ‘‘and 1998’’.
1995—Subsec. (a). Pub. L. 104–64, § 3(1), struck out
paragraph designation ‘‘(1)’’ and former par. (1) heading
‘‘In general’’ and in text substituted ‘‘Except as provided in subsection (b),’’ for ‘‘Except as provided in subsection (c),,’’.
Subsecs. (b) to (d). Pub. L. 104–64, § 3(2), added subsec.
(b) and struck out former subsec. (b) which authorized
appropriations to carry out provisions of section
2095(k)(2) of this Appendix, former subsec. (c) which authorized appropriations for fiscal year 1991 to carry out
provisions of sections 2091 to 2093 of this Appendix, and
former subsec. (d) which authorized appropriations for
fiscal years 1993, 1994, and 1995 to carry out sections
2091 to 2099a of this Appendix.
1992—Subsec. (a). Pub. L. 102–558, § 152(2)(A), inserted
heading.
Subsec. (a)(1). Pub. L. 102–558, § 152(2)(A), (B), inserted
par. heading, substituted ‘‘Except as provided in subsection (c),’’ for ‘‘Except as provided in paragraph (2)
and paragraph (4)’’, and struck out ‘‘and for payment of
interest under subsection (b) of this section’’ after
‘‘sections 302 and 303’’.
Pub. L. 102–558, § 144, substituted ‘‘Office of Management and Budget’’ for ‘‘Bureau of the Budget’’.
Subsec. (a)(2). Pub. L. 102–558, § 152(2)(C), struck out
par. (2) which read as follows:
‘‘(A) There are hereby authorized to be appropriated
without fiscal year limitation not to exceed
$3,000,000,000 to carry out the provisions of section 305
until the date on which the authority of the President
under such section ceases to be effective in accordance
with section 305(k)(1). Subject to subparagraphs (B) and
(C), all such funds shall remain available until expended.
‘‘(B) Such funds may be expended to carry out section
305 after such date only if such funds were obligated by
the President before such date, or are required to be re-

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

tained as a reserve against a contingent obligation incurred before such date.
‘‘(C) Any sums appropriated pursuant to this paragraph which have not been expended or obligated pursuant to subparagraph (B) as of the date determined
under section 305(k)(1) or are not required to be retained as a reserve against a contingent obligation as
specified in subparagraph (B), shall be transferred to
the Energy Security Reserve and made available to the
Secretary of the Treasury for the United States Synthetic Fuels Corporation pursuant to section 195 of the
United States Synthetic Fuels Corporation Act of
1980.’’
Subsec. (a)(3). Pub. L. 102–558, § 152(2)(D), redesignated
par. (3) as subsec. (b). See below.
Subsec. (a)(4). Pub. L. 102–558, § 152(2)(E), redesignated
subpar. (A) as subsec. (c) (see below) and struck out
subpar. (B) which read as follows: ‘‘The aggregate
amount of loans, guarantees, purchase agreements, and
other actions under sections 301, 302, and 303 during fiscal years 1987, 1988, and 1989 may not exceed
$150,000,000.’’
Subsec. (b). Pub. L. 102–558, § 152(1), (2)(D), redesignated par. (3) of subsec. (a) as subsec. (b), inserted heading, struck out ‘‘There are’’ before ‘‘hereby’’, and
struck out former subsec. (b) which read as follows:
‘‘Interest shall accrue on (1) the cumulative amount of
disbursements to carry out the purposes of sections 302
and 303 (except for storage maintenance, and other operating and administrative expenses), plus any unpaid
accrued interest, less the cumulative amount of any
funds received on transactions entered into pursuant to
sections 302 and 303 and any net losses incurred by an
agency in carrying out its functions under sections 302
and 303 when the head of the agency determines that
such net losses have occurred; and (2) the current market value of the inventory of materials procured under
section 303 as of the first day of each fiscal year commencing with the fiscal year beginning July 1, 1975. At
the close of each fiscal year there shall be deposited
into the Treasury as miscellaneous receipts, from any
amounts appropriated under this section, an amount
which the Secretary of the Treasury determines necessary to provide for the payment of any interest accrued and unpaid under this subsection. The rate of interest shall be determined by the Secretary of the
Treasury, taking into consideration the average market yield during the month preceding each fiscal year
on outstanding marketable obligations of the United
States with one year remaining to maturity.’’
Subsec. (c). Pub. L. 102–558, § 152(2)(E), redesignated
subpar. (A) of par. (4) of subsec. (a) as subsec. (c) and inserted heading.
Subsec. (d). Pub. L. 102–558, § 161, added subsec. (d).
1991—Subsec. (a)(4). Pub. L. 102–99 amended par. (4)
generally. Prior to amendment, par. (4) read as follows:
‘‘(4)(A) There are authorized to be appropriated for
fiscal year 1990, not to exceed $50,000,000 to carry out
the provisions of section 303.
‘‘(B) The aggregate amount of loans, guarantees, purchase agreements, and other actions under sections 301,
302, and 303 during fiscal year 1990 may not exceed
$50,000,000.’’
1989—Subsec. (a)(4). Pub. L. 101–137 amended par. (4)
generally. Prior to amendment, par. (4) read as follows:
‘‘(A) There are authorized to be appropriated for fiscal years 1987, 1988, and 1989 not to exceed $150,000,000 to
carry out the provisions of section 303, except that not
more than $30,000,000 is authorized to be appropriated
for fiscal year 1987.
‘‘(B) The aggregate amount of loans, guarantees, purchase agreements, and other actions under sections 301,
302, and 303 during fiscal years 1987, 1988, and 1989 may
not exceed $150,000,000.’’
1986—Subsec. (a)(4). Pub. L. 99–441 amended par. (4)
generally. Prior to amendment, par. (4) read as follows:
‘‘(A) There are authorized to be appropriated to carry
out the provisions of section 303 not to exceed
$100,000,000 for fiscal years 1985 and 1986, except that not
more than $25,000,000 is authorized to be appropriated
for fiscal year 1985.

§ 2163

‘‘(B) The aggregate amount of loans, guarantees, purchase agreements, and other actions under sections 301,
302, and 303 during fiscal years 1985 and 1986 may not exceed $100,000,000.’’
1984—Subsec. (a)(1), (4). Pub. L. 98–265 inserted ‘‘and
paragraph (4)’’ after ‘‘paragraph (2)’’ in par. (1) and
added par. (4).
1980—Subsec. (a). Pub. L. 96–294, § 105(a), designated
existing provisions as par. (1), inserted exclusions of
sections 305 and 306, reference to funds made available
pursuant to this paragraph, and exception for par. (2),
and added pars. (2) and (3).
1974—Pub. L. 93–426 designated existing provisions as
subsec. (a), inserted reference to sections 302 and 303 of
this Appendix, and added subsec. (b).
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see section 304 of Pub. L.
102–558, set out as a note under section 2062 of this Appendix.
EFFECTIVE DATE OF 1991 AMENDMENT
Amendment by Pub. L. 102–99 effective Oct. 20, 1990,
see section 7 of Pub. L. 102–99, set out as a note under
section 2071 of this Appendix.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96–294 effective June 30, 1980,
see section 107 of Pub. L. 96–294, set out as a note under
section 2062 of this Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.
DELEGATION OF FUNCTIONS
Functions of President under act Sept. 8, 1950 [section
2061 et seq. of this Appendix], relating to production,
conservation, use, control, distribution, and allocation
of energy, delegated to Secretary of Energy, see section
4 of Ex. Ord. No. 11790, June 25, 1974, 39 F.R. 23185, set
out as a note under section 761 of Title 15, Commerce
and Trade.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2094, 2095, 2166
of this Appendix.

§ 2162. Repealed. Pub. L. 102–558, title I, § 153,
Oct. 28, 1992, 106 Stat. 4219
Section, acts Sept. 8, 1950, ch. 932, title VII, § 712, 64
Stat. 820; June 30, 1952, ch. 530, title I, § 119, 66 Stat. 306;
Aug. 9, 1955, ch. 655, § 9, 69 Stat. 583; June 29, 1956, ch.
474, §§ 3, 5, 70 Stat. 408, 409; June 30, 1966, Pub. L. 89–482,
§ 2, 80 Stat. 235; July 1, 1968, Pub. L. 90–370, § 2, 82 Stat.
279; Dec. 16, 1975, Pub. L. 94–152, § 6, 89 Stat. 820, established a Joint Committee on Defense Production.
EFFECTIVE DATE OF REPEAL
Repeal deemed to have become effective Mar. 1, 1992,
see section 304 of Pub. L. 102–558, set out as an Effective
Date of 1992 Amendment note under section 2062 of this
Appendix.

§ 2163. Territorial application of Act
The provisions of this Act [sections 2061 to 2171
of this Appendix] shall be applicable to the
United States, its Territories and possessions,
and the District of Columbia.
(Sept. 8, 1950, ch. 932, title VII, § 713, 64 Stat. 821.)
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.

§ 2163a

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 2166 of this Appendix.

§ 2163a. Repealed. Pub. L. 89–554, § 8(a), Sept. 6,
1966, 80 Stat. 656
Section, act Sept. 8, 1950, ch. 932, title VII, § 714, as
added July 31, 1951, ch. 275, title I, § 110(a) 65 Stat. 139;
amended June 30, 1952, ch. 530, title I, § 121(a) 66 Stat.
306; June 30, 1953, ch. 171, § 10, 67 Stat. 131, created
Small Defense Plants Administration, and related generally to encouragement and aid to small-business concerns with respect to defense production. It terminated
at close of July 31, 1953, by terms of section 2166(a) of
this Appendix. For provisions relating to aid to small
business, see section 631 et seq. of Title 15, Commerce
and Trade.
REVOLVING FUND CONTINUATION
Act July 16, 1953, ch. 204, § 1, 67 Stat. 176, provided in
part that the revolving fund established under the
Small Defense Plants Administration was to remain
available through July 31, 1953, for payment of obligations and direct costs under contracts entered into during fiscal year 1953.

§ 2164. Separability
If any provision of this Act [sections 2061 to
2171 of this Appendix] or the application of such
provision to any person or circumstances shall
be held invalid, the remainder of the Act [said
sections], and the application of such provision
to persons or circumstances other than those as
to which it is held invalid, shall not be affected
thereby.
(Sept. 8, 1950, ch. 932, title VII, § 715, formerly
§ 714, 64 Stat. 821; renumbered § 715, July 31, 1951,
ch. 275, title I, § 110(b), 65 Stat. 144.)
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.

§ 2165. Repealed. Pub. L. 102–558, title I, § 154,
Oct. 28, 1992, 106 Stat. 4219
Section, acts Sept. 8, 1950, ch. 932, title VII, § 716, formerly § 715, 64 Stat. 821; renumbered § 716, July 31, 1951,
ch. 275, title I, § 110(b), 65 Stat. 144, related to persons
disqualified from employment and penalties.
EFFECTIVE DATE OF REPEAL
Repeal deemed to have become effective Mar. 1, 1992,
see section 304 of Pub. L. 102–558, set out as an Effective
Date of 1992 Amendment note under section 2062 of this
Appendix.

§ 2166. Termination of Act
(a) Title I [sections 2071 to 2078 of this Appendix] (except section 104),1 title III [sections 2091
to 2099a of this Appendix], and title VII [sections
2151 to 2171 of this Appendix] (except sections 708
and 721 [sections 2158 and 2170 of this Appendix]),
and all authority conferred thereunder, shall
terminate at the close of September 30, 1999:
Provided, That all authority hereby or hereafter
extended under title III of this Act [sections 2091
to 2099 of this Appendix] shall be effective for
any fiscal year only to such extent or in such
amounts as are provided in advance in appropriation Acts. Section 714 of this Act [section
1 See

References in Text note below.

Page 268

2163a of this Appendix], and all authority conferred thereunder, shall terminate at the close
of July 31, 1953. Section 104,1 and title II [section
2081 of this Appendix], and title VI [sections 2131
to 2137 of this Appendix] of this Act, and all authority conferred thereunder, shall terminate at
the close of June 30, 1953. Title IV [sections 2101
to 2112 of this Appendix] and V [sections 2121 to
2123 of this Appendix] of this Act, and all authority conferred thereunder, shall terminate at
the close of April 30, 1953.
(b) Notwithstanding the foregoing—
(1) The Congress by concurrent resolution or
the President by proclamation may terminate
this Act [sections 2061 to 2171 of this Appendix]
prior to the termination otherwise provided
therefor.
(2) The Congress may also provide by concurrent resolution that any section of this Act
[said sections] and all authority conferred
thereunder shall terminate prior to the termination otherwise provided therefor.
(3) Any agency created under this Act [said
sections] may be continued in existence for
purposes of liquidation for not to exceed six
months after the termination of the provision
authorizing the creation of such agency.
(c) The termination of any section of this Act
[sections 2061 to 2171 of this Appendix], or of any
agency or corporation utilized under this Act
[said sections], shall not affect the disbursement
of funds under, or the carrying out of, any contract, guarantee, commitment or other obligation entered into pursuant to this Act [said sections] prior to the date of such termination, or
the taking of any action necessary to preserve
or protect the interests of the United States in
any amounts advanced or paid out in carrying
on operations under this Act [said sections], or
the taking of any action (including the making
of new guarantees) deemed by a guaranteeing
agency to be necessary to accomplish the orderly liquidation, adjustment or settlement of
any loans guaranteed under this Act [said sections], including actions deemed necessary to
avoid undue hardship to borrowers in reconverting to normal civilian production; and all of the
authority granted to the President, guaranteeing agencies, and fiscal agents, under section 301
of this Act [section 2091 of this Appendix] shall
be applicable to actions taken pursuant to the
authority contained in this subsection.
Notwithstanding any other provision of this
Act [sections 2061 to 2171 of this Appendix], the
termination of title VI [sections 2132 to 2137 of
this Appendix] or any section thereof shall not
be construed as affecting any obligation, condition, liability, or restriction arising out of any
agreement heretofore entered into pursuant to,
or under the authority of, section 602 or section
605 of this Act [section 2132 or 2135 of this Appendix], or any issuance thereunder, by any person
or corporation and the Federal Government or
any agency thereof relating to the provision of
housing for defense workers or military personnel in an area designated as a critical defense
housing area pursuant to law.
(d) No action for the recovery of any cooperative payment made to a cooperative association
by a Market Administrator under an invalid
provision of a milk marketing order issued by

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

the Secretary of Agriculture pursuant to the Agricultural Marketing Agreement Act of 1937 [7
U.S.C. 671 et seq.] shall be maintained unless
such action is brought by producers specifically
named as party plaintiffs to recover their respective share of such payments within ninety
days after the date of enactment of the Defense
Production Act Amendments of 1952 [June 30,
1952] with respect to any cause of action heretofore accrued and not otherwise barred, or
within ninety days after accrual with respect to
future payments, and unless each claimant shall
allege and prove (1) that he objected at the hearing to the provisions of the order under which
such payments were made and (2) that he either
refused to accept payments computed with such
deduction or accepted them under protest to either the Secretary or the Administrator. The
district courts of the United States shall have
exclusive original jurisdiction of all such actions regardless of the amount involved. This
subsection shall not apply to funds held in escrow pursuant to court order. Notwithstanding
any other provision of this Act [sections 2061 to
2171 of this Appendix], no termination date shall
be applicable to this subsection.
(Sept. 8, 1950, ch. 932, title VII, § 717, formerly
§ 716, 64 Stat. 822; June 30, 1951, ch. 198, § 1, 65
Stat. 110; renumbered § 717, July 31, 1951, ch. 275,
title I, §§ 110(b), 111, 65 Stat. 144; June 30, 1952, ch.
530, title I, §§ 120, 121(b), 66 Stat. 306; June 30,
1953, ch. 170, § 20, 67 Stat. 126; June 30, 1953, ch.
171, §§ 11, 12, 67 Stat. 131; June 30, 1955, ch. 251, § 5,
69 Stat. 225; Aug. 9, 1955, ch. 655, § 10, 69 Stat. 583;
June 29, 1956, ch. 474, § 1, 70 Stat. 408; Pub. L.
85–471, June 28, 1958, 72 Stat. 241; Pub. L. 86–560,
§ 1, June 30, 1960, 74 Stat. 282; Pub. L. 87–505,
June 28, 1962, 76 Stat. 112; Pub. L. 88–343, § 1,
June 30, 1964, 78 Stat. 235; Pub. L. 89–482, § 1,
June 30, 1966, 80 Stat. 235; Pub. L. 90–370, § 1, July
1, 1968, 82 Stat. 279; Pub. L. 91–300, June 30, 1970,
84 Stat. 367; Pub. L. 91–371, Aug. 1, 1970, 84 Stat.
694; Pub. L. 91–379, title I, § 101, Aug. 15, 1970, 84
Stat. 796; Pub. L. 92–15, § 2, May 18, 1971, 85 Stat.
38; Pub. L. 92–325, § 2, June 30, 1972, 86 Stat. 390;
Pub. L. 93–323, June 30, 1974, 88 Stat. 280; Pub. L.
93–367, Aug. 7, 1974, 88 Stat. 419; Pub. L. 93–426,
§ 4, Sept. 30, 1974, 88 Stat. 1167; Pub. L. 94–42, § 1,
June 28, 1975, 89 Stat. 232; Pub. L. 94–100, § 1, Oct.
1, 1975, 89 Stat. 483; Pub. L. 94–152, § 2, Dec. 16,
1975, 89 Stat. 810; Pub. L. 95–37, § 2, June 1, 1977,
91 Stat. 178; Pub. L. 96–77, Sept. 29, 1979, 93 Stat.
588; Pub. L. 96–188, Jan. 28, 1980, 94 Stat. 3; Pub.
L. 96–225, Apr. 3, 1980, 94 Stat. 310; Pub. L. 96–250,
May 26, 1980, 94 Stat. 371; Pub. L. 96–294, title I,
§ 105(b), June 30, 1980, 94 Stat. 633; Pub. L. 97–47,
§ 1, Sept. 30, 1981, 95 Stat. 954; Pub. L. 97–336, Oct.
15, 1982, 96 Stat. 1630; Pub. L. 98–12, Mar. 29, 1983,
97 Stat. 53; Pub. L. 98–181, title VII, § 703, Nov. 30,
1983, 97 Stat. 1267; Pub. L. 98–265, § 2, Apr. 17, 1984,
98 Stat. 149; Pub. L. 99–441, § 2, Oct. 3, 1986, 100
Stat. 1117; Pub. L. 101–137, § 9(a), Nov. 3, 1989, 103
Stat. 826; Pub. L. 101–351, § 1, Aug. 9, 1990, 104
Stat. 404; Pub. L. 101–407, § 1, Oct. 4, 1990, 104
Stat. 882; Pub. L. 101–411, § 1, Oct. 6, 1990, 104
Stat. 893; Pub. L. 102–99, §§ 2, 8, Aug. 17, 1991, 105
Stat. 487, 490; Pub. L. 102–193, § 1, Dec. 6, 1991, 105
Stat. 1593; Pub. L. 102–558, title I, § 162, Oct. 28,
1992, 106 Stat. 4219; Pub. L. 104–64, § 2, Dec. 18,
1995, 109 Stat. 689; Pub. L. 105–261, div. A, title X,
§ 1072(a), Oct. 17, 1998, 112 Stat. 2137.)

§ 2166

REFERENCES IN TEXT
Section 104 of this Act, referred to in subsec. (a), was
classified to section 2074 of this Appendix and terminated June 30, 1953, by terms of subsec. (a) of this section. A new section 104 was added by act Oct. 28, 1992,
Pub. L. 102–558, title I, § 112, 106 Stat. 4202, and is classified to section 2074 of this Appendix.
The Agricultural Marketing Agreement Act of 1937,
referred to in subsec. (d), is act June 3, 1937, ch. 296, 50
Stat. 246, as amended, which is classified principally to
chapter 26A (§ 671 et seq.) of Title 7, Agriculture. For
complete classification of this Act to the Code, see section 674 of Title 7 and Tables.
AMENDMENTS
1998—Subsec. (a). Pub. L. 105–261 substituted ‘‘September 30, 1999’’ for ‘‘September 30, 1998’’.
1995—Subsec. (a). Pub. L. 104–64, which directed substitution in first sentence of ‘‘Title I (except section
104), title III, and title VII (except sections 708 and 721),
and all authority conferred thereunder, shall terminate
at the close of September 30, 1998’’ for ‘‘Title I (except
section 104), title III, and title VII (except sections 708,
714, 719, and 721) of this Act, and all authority conferred
thereunder shall terminate at the close of September
30, 1995’’ was executed by making the substitution for
text which included comma after ‘‘thereunder’’, to reflect the probable intent of Congress.
1992—Subsec. (a). Pub. L. 102–558 substituted ‘‘September 30, 1995’’ for ‘‘March 1, 1992’’.
1991—Subsec. (a). Pub. L. 102–193 substituted ‘‘March
1, 1992’’ for ‘‘September 30, 1991’’.
Pub. L. 102–99 substituted ‘‘September 30, 1991’’ for
‘‘October 20, 1990’’ and ‘‘sections 708, 714, 719, and 721’’
for ‘‘sections 708, 714, and 719’’.
1990—Subsec. (a). Pub. L. 101–411 extended termination date from Oct. 5, 1990, to Oct. 20, 1990.
Pub. L. 101–407 extended termination date from Sept.
30, 1990, to Oct. 5, 1990.
Pub. L. 101–351 extended termination date from Aug.
10, 1990, to Sept. 30, 1990.
1989—Subsec. (a). Pub. L. 101–137 extended termination date from Sept. 30, 1989, to Aug. 10, 1990.
1986—Subsec. (a). Pub. L. 99–441 extended termination
date from Sept. 30, 1986, to Sept. 30, 1989.
1984—Subsec. (a). Pub. L. 98–265 extended termination
date from Mar. 30, 1984, to Sept. 30, 1986.
1983—Subsec. (a). Pub. L. 98–181 extended termination
date from Sept. 30, 1983, to Mar. 30, 1984.
Pub. L. 98–12 extended termination date from Mar. 31,
1983, to Sept. 30, 1983.
1982—Pub. L. 97–336 extended termination date from
Sept. 30, 1982, to Mar. 31, 1983.
1981—Subsec. (a). Pub. L. 97–47 extended termination
date from Sept. 30, 1981, to Sept. 30, 1982.
1980—Subsec. (a). Pub. L. 96–294 extended termination
date from Aug. 27, 1981, to Sept. 30, 1981.
Pub. L. 96–250 extended termination date from May
27, 1980, to Aug. 27, 1980.
Pub. L. 96–225 extended termination date from Mar.
28, 1980, to May 27, 1980.
Pub. L. 96–188 extended termination date from Jan.
28, 1980, to Mar. 28, 1980.
1979—Subsec. (a). Pub. L. 96–77 extended termination
date from Sept. 30, 1979, to Jan. 28, 1980.
1977—Subsec. (a). Pub. L. 95–37 extended termination
date from Sept. 30, 1977, to Sept. 30, 1979.
1975—Subsec. (a). Pub. L. 94–152 extended termination
date from Nov. 30, 1975, to Sept. 30, 1977, and inserted
proviso that all authority now or subsequently extended under Title III of this Act [sections 2091 to 2094
of this Appendix] shall be effective for any fiscal year
only to such extent and amounts as are provided for in
advance in appropriation Acts.
Pub. L. 94–100 extended termination date from Sept.
30, 1975, to Nov. 30, 1975.
Pub. L. 94–42 extended termination date from June 30,
1975, to Sept. 30, 1975.
1974—Subsec. (a). Pub. L. 93–426 extended termination
date from June 30, 1974, to June 30, 1975.

§ 2167

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

Pub. L. 93–367 extended termination date from July
30, 1974, to Sept. 30, 1974.
Pub. L. 93–323 extended termination date from June
30, 1974, to July 30, 1974.
1972—Subsec. (a). Pub. L. 92–325 substituted ‘‘June 30,
1974’’ for ‘‘June 30, 1972’’.
1971—Subsec. (a). Pub. L. 92–15 inserted parenthetical
reference to section ‘‘708’’.
1970—Subsec. (a). Pub. L. 91–379 substituted ‘‘June 30,
1972’’ for ‘‘August 15, 1970’’ and ‘‘sections 714 and 719’’
for ‘‘section 714’’.
Pub. L. 91–371 extended termination date from July
30, 1970, to Aug. 15, 1970.
Pub. L. 91–300 extended termination date from June
30, 1970, to July 30, 1970.
1968—Subsec. (a). Pub. L. 90–370 extended termination
date from June 30, 1968, to June 30, 1970.
1966—Subsec. (a). Pub. L. 89–482 extended termination
date from June 30, 1966, to June 30, 1968.
1964—Subsec. (a). Pub. L. 88–343 extended termination
date from June 30, 1964, to June 30, 1966.
1962—Subsec. (a). Pub. L. 87–505 extended termination
date from June 30, 1962, to June 30, 1964.
1960—Subsec. (a). Pub. L. 86–560 extended termination
date from June 30, 1960, to June 30, 1962.
1958—Subsec. (a). Pub. L. 85–471 extended termination
date from June 30, 1958, to June 30, 1960.
1956—Subsec. (a). Act June 29, 1956, extended termination date from June 30, 1956, to June 30, 1958.
1955—Subsec. (a). Act Aug. 9, 1955, extended termination date from July 31, 1955, to June 30, 1956.
Act June 30, 1955, extended termination date from
June 30, 1955, to July 31, 1955.
1953—Subsec. (a). Act June 30, 1953, ch. 171, § 11,
changed termination dates as follows: (1) Title I except
section 2074 of this Appendix, from June 30, 1953, to
June 30, 1955; (2) Title III, from June 30, 1953, to June
30, 1955; Title VII (except section 2163a of this Appendix), from June 30, 1953 to June 30, 1955.
Subsec. (c). Act June 30, 1953, ch. 171, § 12, inserted ‘‘or
the taking of any action (including the making of new
guarantees) deemed by a guaranteeing agency to be
necessary to accomplish the orderly liquidation, adjustment or settlement of any loans guaranteed under
this Act, including actions deemed necessary to avoid
undue hardship to borrowers in reconverting to normal
civilian production; and all of the authority granted to
the President, guaranteeing agencies, and fiscal agents,
under section 301 of this Act shall be applicable to actions taken pursuant to the authority contained in this
subsection’’.
Act June 30, 1953, ch. 170, added second par.
1952—Subsec. (a). Act June 30, 1952, § 121(b), extended
termination dates from Apr. 30, 1952, to Apr. 30, 1953,
and from June 30, 1952, to June 30, 1953.
Subsec. (d). Act June 30, 1952, § 120, added subsec. (d).
1951—Subsec. (a). Acts July 31, 1951, § 111, and June 30,
1951. Act July 31, 1951, struck out subsec. (a) relating to
termination of certain titles of act Sept. 8, 1950, and
substituted present subsec. (a). Act June 30, 1951, extended termination date from June 30, 1951, to July 31,
1951.
Subsec. (b). Act July 31, 1951, redesignated subsec. (c)
as (b) and struck out former subsec. (b) which related
to termination date of certain titles of act Sept. 8, 1950.
Former subsec. (b) was amended by act June 30, 1951, to
extend termination date from June 30, 1951, to July 31,
1951.
Subsecs. (c), (d). Act July 31, 1951, § 111, redesignated
subsec. (d) as (c). Former subsec. (c) redesignated (b).
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see section 304 of Pub. L.
102–558, set out as a note under section 2062 of this Appendix.
EFFECTIVE DATE OF 1991 AMENDMENTS
Section 2 of Pub. L. 102–193 provided that: ‘‘This Act
[amending this section] shall take effect on September
30, 1991.’’

Page 270

Amendment by Pub. L. 102–99 effective Oct. 20, 1990,
see section 7 of Pub. L. 102–99, set out as a note under
section 2071 of this Appendix.
EFFECTIVE DATE OF 1980 AMENDMENT
Amendment by Pub. L. 96–294 effective June 30, 1980,
see section 107 of Pub. L. 96–294, set out as a note under
section 2062 of this Appendix.
EFFECTIVE DATE OF 1975 AMENDMENT
Amendment by Pub. L. 94–152 effective at close of
Nov. 30, 1975, see section 9 of Pub. L. 94–152, as amended,
set out as a note under section 2158 of this Appendix.
EFFECTIVE DATE OF 1955 AMENDMENT
Amendment by act Aug. 9, 1955, effective as of close
of July 31, 1955, see section 11 of act Aug. 9, 1955, set out
as a note under section 2062 of this Appendix.
CROSS REFERENCES
Effect of termination of act on actions or prosecutions based on rights or liabilities arising prior to termination, see section 2156 of this Appendix.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2095, 2096 of this
Appendix.

§ 2167. Repealed. Pub. L. 102–558, title I, § 155,
Oct. 28, 1992, 106 Stat. 4219
Section, act Sept. 8, 1950, ch. 932, title VII, § 718, as
added July 1, 1968, Pub. L. 90–370, § 3, 82 Stat. 279, authorized a feasibility study of application of uniform
cost accounting standards to defense procurement contracts.
EFFECTIVE DATE OF REPEAL
Repeal deemed to have become effective Mar. 1, 1992,
see section 304 of Pub. L. 102–558, set out as an Effective
Date of 1992 Amendment note under section 2062 of this
Appendix.

§ 2168. Repealed. Pub. L. 100–679, § 5(b), Nov. 17,
1988, 102 Stat. 4063
Section, act Sept. 8, 1950, ch. 932, title VII, § 719, as
added Aug. 15, 1970, Pub. L. 91–379, title I, § 103, 84 Stat.
796; amended Dec. 16, 1975, Pub. L. 94–152, § 7, 89 Stat.
820; Nov. 8, 1985, Pub. L. 99–145, title IX, § 934(b), 99 Stat.
700; Nov. 14, 1986, Pub. L. 99–661, div. A, title XIII,
§ 1342(f), 100 Stat. 3991, related to formation, functions,
appointment and compensation of staff, etc., of Cost
Accounting Standards Board. See section 422 of Title
41, Public Contracts.

§ 2169. Repealed. Pub. L. 102–558, title I, § 156,
Oct. 28, 1992, 106 Stat. 4219
Section, act Sept. 8, 1950, ch. 932, title VII, § 720, as
added Sept. 30, 1974, Pub. L. 93–426, § 5, 88 Stat. 1167;
amended Mar. 21, 1975, Pub. L. 94–9, 89 Stat. 15; Aug. 5,
1975, Pub. L. 94–72, 89 Stat. 399; Dec. 16, 1975, Pub. L.
94–152, § 8, 89 Stat. 820, established a National Commission on Supplies and Shortages.
EFFECTIVE DATE OF REPEAL
Repeal deemed to have become effective Mar. 1, 1992,
see section 304 of Pub. L. 102–558, set out as an Effective
Date of 1992 Amendment note under section 2062 of this
Appendix.

§ 2170. Authority to review certain mergers, acquisitions, and takeovers
(a) Investigations
The President or the President’s designee may
make an investigation to determine the effects

Page 271

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

§ 2170

on national security of mergers, acquisitions,
and takeovers proposed or pending on or after
the date of enactment of this section [Aug. 23,
1988] by or with foreign persons which could result in foreign control of persons engaged in
interstate commerce in the United States. If it
is determined that an investigation should be
undertaken, it shall commence no later than 30
days after receipt by the President or the President’s designee of written notification of the
proposed or pending merger, acquisition, or
takeover as prescribed by regulations promulgated pursuant to this section. Such investigation shall be completed no later than 45 days
after such determination.

(e) Findings of the President
The President may exercise the authority conferred by subsection (c) 1 only if the President
finds that—
(1) there is credible evidence that leads the
President to believe that the foreign interest
exercising control might take action that
threatens to impair the national security, and
(2) provisions of law, other than this section
and the International Emergency Economic
Powers Act (50 U.S.C. 1701–1706), do not in the
President’s judgment provide adequate and appropriate authority for the President to protect the national security in the matter before
the President.

(b) Mandatory investigations
The President or the President’s designee
shall make an investigation, as described in subsection (a), in any instance in which an entity
controlled by or acting on behalf of a foreign
government seeks to engage in any merger, acquisition, or takeover which could result in control of a person engaged in interstate commerce
in the United States that could affect the national security of the United States. Such investigation shall—
(1) commence not later than 30 days after receipt by the President or the President’s designee of written notification of the proposed
or pending merger, acquisition, or takeover, as
prescribed by regulations promulgated pursuant to this section; and
(2) shall be completed not later than 45 days
after its commencement.

The provisions of subsection (d) 1 of this section
shall not be subject to judicial review.
(f) Factors to be considered
For purposes of this section, the President or
the President’s designee may, taking into account the requirements of national security,
consider among other factors—
(1) domestic production needed for projected
national defense requirements,
(2) the capability and capacity of domestic
industries to meet national defense requirements, including the availability of human resources, products, technology, materials, and
other supplies and services,
(3) the control of domestic industries and
commercial activity by foreign citizens as it
affects the capability and capacity of the
United States to meet the requirements of national security,
(4) the potential effects of the proposed or
pending transaction on sales of military
goods, equipment, or technology to any country—
(A) identified by the Secretary of State—
(i) under section 6(j) of the Export Administration Act of 1979 [section 2405(j) of
this Appendix], as a country that supports
terrorism;
(ii) under section 6(l) of the Export Administration Act of 1979 [section 2405(l) of
this Appendix], as a country of concern regarding missile proliferation; or
(iii) under section 6(m) of the Export Administration Act of 1979 [section 2405(m) of
this Appendix], as a country of concern regarding the proliferation of chemical and
biological weapons; or

(c) Confidentiality of information
Any information or documentary material
filed with the President or the President’s designee pursuant to this section shall be exempt
from disclosure under section 552 of title 5,
United States Code, and no such information or
documentary material may be made public, except as may be relevant to any administrative
or judicial action or proceeding. Nothing in this
subsection shall be construed to prevent disclosure to either House of Congress or to any duly
authorized committee or subcommittee of the
Congress.
(d) Action by the President
Subject to subsection (d),1 the President may
take such action for such time as the President
considers appropriate to suspend or prohibit any
acquisition, merger, or takeover, of a person engaged in interstate commerce in the United
States proposed or pending on or after the date
of enactment of this section [Aug. 23, 1988] by or
with foreign persons so that such control will
not threaten to impair the national security.
The President shall announce the decision to
take action pursuant to this subsection not
later than 15 days after the investigation described in subsection (a) is completed. The
President may direct the Attorney General to
seek appropriate relief, including divestment relief, in the district courts of the United States
in order to implement and enforce this section.
1 See

References in Text note below.

(B) listed under section 309(c) of the Nuclear Non-Proliferation Act of 1978 [42 U.S.C.
2139a(c)] on the ‘‘Nuclear Non-ProliferationSpecial Country List’’ (15 C.F.R. Part 778,
Supplement No. 4) or any successor list; and
(5) the potential effects of the proposed or
pending transaction on United States international technological leadership in areas affecting United States national security.
(g) Report to the Congress
The President shall immediately transmit to
the Secretary of the Senate and the Clerk of the
House of Representatives a written report of the
President’s determination of whether or not to
take action under subsection (d), including a detailed explanation of the findings made under

§ 2170

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

subsection (e) and the factors considered under
subsection (f). Such report shall be consistent
with the requirements of subsection (c) of this
Act.2
(h) Regulations
The President shall direct the issuance of regulations to carry out this section. Such regulations shall, to the extent possible, minimize paperwork burdens and shall to the extent possible
coordinate reporting requirements under this
section with reporting requirements under any
other provision of Federal law.
(i) Effect on other law
Nothing in this section shall be construed to
alter or affect any existing power, process, regulation, investigation, enforcement measure, or
review provided by any other provision of law.
(j) Technology risk assessments
In any case in which an assessment of the risk
of diversion of defense critical technology is performed by a designee of the President, a copy of
such assessment shall be provided to any other
designee of the President responsible for reviewing or investigating a merger, acquisition, or
takeover under this section.
(k) Quadrennial report
(1) In general
In order to assist the Congress in its oversight responsibilities with respect to this section, the President and such agencies as the
President shall designate shall complete and
furnish to the Congress, not later than 1 year
after the date of enactment of this section 3
and upon the expiration of every 4 years thereafter, a report which—
(A) evaluates whether there is credible evidence of a coordinated strategy by 1 or more
countries or companies to acquire United
States companies involved in research, development, or production of critical technologies for which the United States is a
leading producer; and
(B) evaluates whether there are industrial
espionage activities directed or directly assisted by foreign governments against private United States companies aimed at obtaining commercial secrets related to critical technologies.
(2) ‘‘Critical technologies’’ defined
For the purposes of this subsection, the term
‘‘critical technologies’’ means technologies
identified under title VI of the National
Science and Technology Policy, Organization,
and Priorities Act of 1976 [42 U.S.C. 6681 et
seq.] or other critical technology, critical
components, or critical technology items essential to national defense identified pursuant
to this section.
(3) Release of unclassified study
The report required by this subsection may
be classified. An unclassified version of the report shall be made available to the public.
(Sept. 8, 1950, ch. 932, title VII, § 721, as added
Pub. L. 100–418, title V, § 5021, Aug. 23, 1988, 102
2 So

in original. Probably should be ‘‘section.’’
References in Text note below.

3 See

Page 272

Stat. 1425; amended Pub. L. 102–484, div. A, title
VIII, § 837(a)–(c), (e), Oct. 23, 1992, 106 Stat.
2463–2465; Pub. L. 102–558, title I, § 163, Oct. 28,
1992, 106 Stat. 4219; Pub. L. 103–359, title VIII,
§ 809(d), Oct. 14, 1994, 108 Stat. 3454.)
REFERENCES IN TEXT
Subsections (c) and (d), referred to in subsecs. (d) and
(e), were redesignated subsecs. (d) and (e), respectively,
by Pub. L. 102–484. See 1992 Amendment note below.
The International Emergency Economic Powers Act,
referred to in subsec. (e)(2), is title II of Pub. L. 95–223,
Dec. 28, 1977, 91 Stat. 1626, which is classified generally
to chapter 35 (§ 1701 et seq.) of Title 50, War and National Defense. For complete classification of this Act
to the Code, see Short Title note set out under section
1701 of Title 50 and Tables.
The date of enactment of this section, referred to in
subsec. (k)(1), probably means the date of enactment of
Pub. L. 102–558, which enacted subsec. (k) of this section and was approved Oct. 28, 1992.
The National Science and Technology Policy, Organization, and Priorities Act of 1976, referred to in subsec.
(k)(2), is Pub. L. 94–282, May 11, 1976, 90 Stat. 459, as
amended. Title VI of the Act is classified generally to
subchapter VI (§ 6681 et seq.) of chapter 79 of Title 42,
The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note
set out under section 6601 of Title 42 and Tables.
AMENDMENTS
1994—Subsec. (k)(1)(B). Pub. L. 103–359 inserted ‘‘or directly assisted’’ after ‘‘directed’’.
1992—Subsecs. (b) to (e). Pub. L. 102–484, § 837(a), added
subsec. (b) and redesignated former subsecs. (b) to (d) as
(c) to (e), respectively. Former subsec. (e) redesignated
(f).
Subsec. (f). Pub. L. 102–484, § 837(a)(1), (b), redesignated subsec. (e) as (f) and added pars. (4) and (5).
Former subsec. (f) redesignated (g).
Subsec. (g). Pub. L. 102–484, § 837(c), amended subsec.
(g) generally. Prior to amendment, subsec. (g) read as
follows: ‘‘If the President determines to take action
under subsection (c), the President shall immediately
transmit to the Secretary of the Senate and the Clerk
of the House of Representatives a written report of the
action which the President intends to take, including a
detailed explanation of the findings made under subsection (d).’’
Pub. L. 102–484, § 837(a)(1), redesignated subsec. (f) as
(g). Former subsec. (g) redesignated (h).
Subsecs. (h), (i). Pub. L. 102–484, § 837(a)(1), redesignated subsecs. (g) and (h) as (h) and (i), respectively.
Subsec. (j). Pub. L. 102–484, § 837(e), added subsec. (j).
Subsec. (k). Pub. L. 102–558 added subsec. (k).
EFFECTIVE DATE OF 1992 AMENDMENT
Amendment by Pub. L. 102–558 deemed to have become effective Mar. 1, 1992, see section 304 of Pub. L.
102–558, set out as a note under section 2062 of this Appendix.
INTERIM DIRECTIVE REGARDING DISPOSITION OF CERTAIN
MERGERS, ACQUISITIONS, AND TAKEOVERS
Memorandum of the President of the United States,
Oct. 26, 1988, 53 F.R. 43999, provided:
Memorandum for the Secretary of the Treasury
By virtue of the authority vested in me by the Constitution and statutes of the United States, including
without limitation Section 301 of Title 3 of the United
States Code, the Defense Production Act of 1950, as
amended (50 U.S.C. App. 2061 et seq.), and the Omnibus
Trade and Competitiveness Act of 1988 (Pub. L. 100–418,
August 23, 1988) (the ‘‘Act’’) [see Tables for classification], it is ordered as follows:
Pending the issuance of an Executive order to implement the Act, the Secretary of the Treasury is hereby
designated and empowered to perform the following-de-

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

scribed functions of the President: The authority vested in the President by Section 721 of the Defense Production Act of 1950, as amended [this section], relative
to mergers, acquisitions, and takeovers proposed or
pending on or after the date of enactment of the Act
[Aug. 23, 1988] by or with foreign persons which could
result in foreign control of persons engaged in interstate commerce in the United States.
The Secretary of the Treasury shall consult with the
Committee on Foreign investment in the United
States, established pursuant to Executive Order No.
11858 [15 U.S.C. 78b note] and chaired by the representative of the Secretary of the Treasury, to take such actions or make such recommendations as requested by
the Secretary of the Treasury.
The delegation provided herein shall terminate, and
this interim directive shall be without any further effect, except as may be provided in the Executive order
implementing the Act, upon the effective date of such
order.
This interim directive shall be published in the Federal Register.
RONALD REAGAN.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2166, 2170a of
this Appendix; title 10 section 2537; title 22 section 3103.

§ 2170a. Prohibition on purchase of United States
defense contractors by entities controlled by
foreign governments
(a) In general
No entity controlled by a foreign government
may merge with, acquire, or take over a company engaged in interstate commerce in the
United States that—
(1) is performing a Department of Defense
contract, or a Department of Energy contract
under a national security program, that cannot be performed satisfactorily unless that
company is given access to information in a
proscribed category of information; or
(2) during the previous fiscal year, was
awarded—
(A) Department of Defense prime contracts
in an aggregate amount in excess of
$500,000,000; or
(B) Department of Energy prime contracts
under national security programs in an aggregate amount in excess of $500,000,000.
(b) Inapplicability to certain cases
The limitation in subsection (a) shall not
apply if a merger, acquisition, or takeover is not
suspended or prohibited pursuant to section 721
of the Defense Production Act of 1950 (50 U.S.C.
App. 2170).
(c) Definitions
In this section:
(1) The term ‘‘entity controlled by a foreign
government’’ includes—
(A) any domestic or foreign organization
or corporation that is effectively owned or
controlled by a foreign government; and
(B) any individual acting on behalf of a
foreign government,
as determined by the President.
(2) The term ‘‘proscribed category of information’’ means a category of information
that—
(A) with respect to Department of Defense
contracts—

§ 2170b

(i) includes special access information;
(ii) is determined by the Secretary of Defense to include information the disclosure
of which to an entity controlled by a foreign government is not in the national security interests of the United States; and
(iii) is defined in regulations prescribed
by the Secretary of Defense for the purposes of this section; and
(B) with respect to Department of Energy
contracts—
(i) is determined by the Secretary of Energy to include information described in
subparagraph (A)(ii); and
(ii) is defined in regulations prescribed
by the Secretary of Energy for the purposes of this section.
(Pub. L. 102–484, div. A, title VIII, § 835, Oct. 23,
1992, 106 Stat. 2461.)
CODIFICATION
Section was enacted as part of the National Defense
Authorization Act for Fiscal Year 1993, and not as part
of the Defense Production Act of 1950 which comprises
sections 2061 to 2171 of this Appendix.

§ 2170b. Reports on foreign industrial espionage
(a) In general
(1) Submission and contents
In order to assist Congress in its oversight
functions with respect to this Act and to improve the awareness of United States industry
of foreign industrial espionage and the ability
of such industry to protect against such espionage, the President shall submit to Congress a
report that describes, as of the time of the report, the following:
(A) The respective policy functions and
operational roles of the agencies of the executive branch of the Federal Government in
identifying and countering threats to United
States industry of foreign industrial espionage, including the manner in which such
functions and roles are coordinated.
(B) The means by which the Federal Government communicates information on such
threats, and on methods to protect against
such threats, to United States industry in
general and to United States companies
known to be targets of foreign industrial espionage.
(C) The specific measures that are being or
could be undertaken in order to improve the
activities referred to in subparagraphs (A)
and (B), including proposals for any modifications of law necessary to facilitate the
undertaking of such activities.
(D) The threat to United States industry
of foreign industrial espionage and any
trends in that threat, including—
(i) the number and identity of the foreign governments conducting foreign industrial espionage;
(ii) the industrial sectors and types of information and technology targeted by such
espionage; and
(iii) the methods used to conduct such
espionage.
(2) Date of submission
The President shall submit the report required under this subsection not later than six

§ 2171

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

months after the date of the enactment of this
Act [Oct. 14, 1994].
(b) Annual update
Not later than one year after the date referred
to in paragraph (2) of subsection (a), and on the
expiration of each year thereafter, the President
shall submit to Congress a report updating the
information referred to in paragraph (1)(D) of
that subsection.
(c) Form of reports
To the maximum extent practicable, the reports referred to in subsections (a) and (b) shall
be submitted in an unclassified form, but may
be accompanied by a classified appendix.
(d) Omitted
(e) Definition
For the purposes of this section, ‘‘foreign industrial espionage’’ means industrial espionage
conducted by a foreign government or by a foreign company with direct assistance of a foreign
government against a private United States
company and aimed at obtaining commercial secrets.
(Pub. L. 103–359, title VIII, § 809, Oct. 14, 1994, 108
Stat. 3454.)
REFERENCES IN TEXT
This Act, referred to in subsec. (a)(1), is Pub. L.
103–359, Oct. 14, 1994, 108 Stat. 3423, known as the Intelligence Authorization Act for Fiscal Year 1995. For
complete classification of this Act to the Code, see
Tables.
CODIFICATION
Section is comprised of section 809 of Pub. L. 103–359.
Subsec. (d) of section 809 of Pub. L. 103–359 amended
section 2170 of this Appendix.
Section was enacted as part of the Counterintelligence and Security Enhancements Act of 1994
and also as part of the Intelligence Authorization Act
for Fiscal Year 1995, and not as part of the Defense Production Act of 1950 which comprises sections 2061 to
2171 of this Appendix.

§ 2171. Defense industrial base information system
(a) Establishment required
(1) In general
The President, acting through the Secretary
of Defense and the heads of such other Federal
agencies as the President may determine to be
appropriate, shall provide for the establishment of an information system on the domestic defense industrial base which—
(A) meets the requirements of this section;
and
(B) includes a systematic continuous procedure, to collect and analyze information
necessary to evaluate—
(i) the adequacy of domestic industrial
capacity to furnish critical components
and critical technology items essential to
the national security of the United States;
(ii) dependence on foreign sources for
critical components and critical technology items essential to defense production; and
(iii) the reliability of foreign sources for
critical components and critical technology items.

Page 274

(2) Incorporation of DINET
The Defense Information Network (or
DINET), as established and maintained by the
Secretary of Defense on the date of enactment
of the Defense Production Act Amendments of
1992 [Oct. 28, 1992], shall be incorporated into
the system established pursuant to paragraph
(1).
(3) Use of information
Information collected and analyzed under
the procedure established pursuant to paragraph (1) shall constitute a basis for making
any determination to exercise any authority
under this Act [sections 2061 to 2171 of this Appendix] and a procedure for using such information shall be integrated into the decisionmaking process with regard to the exercise of
any such authority.
(b) Sources of information
(1) Foreign dependence
(A) Scope of information review
The procedure established to meet the requirement of subsection (a)(1)(B)(ii) shall address defense production with respect to the
operations of prime contractors and at least
the first 2 tiers of subcontractors, or at
lower tiers if a critical component is identified at such lower tier.
(B) Use of existing data collection and review
capabilities
To the extent feasible and appropriate, the
President shall build upon existing methods
of data collection and analysis and shall integrate information available from intelligence agencies with respect to industrial
and technological conditions in foreign
countries.
(C) Initial emphasis on priority lists
In establishing the procedure referred to in
subparagraph (A), the Secretary may place
initial emphasis on the production of critical components and critical technology
items.
(2) Production base analysis
(A) Comprehensive review
The analysis of the production base for
any major system acquisition included in
the information system maintained pursuant to subsection (a) shall, in addition to
any information and analyses the President
may require—
(i) include a review of all subcontractors
and suppliers, beginning with any raw material, special alloy, or composite material
involved in the production of a completed
system;
(ii) identify each contractor and subcontractor (or supplier) at each level of
production for such major system acquisition which represents a potential for delaying or preventing the system’s production and acquisition, including the identity of each contractor or subcontractor
whose contract qualifies as a foreign
source or sole source contract and any supplier which is a foreign source or sole

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TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

source for any item required in the production, including critical components; and
(iii) include information to permit appropriate management of accelerated or
surge production.
(B) Initial requirement for study of production bases for not more than 6 major
weapon systems
In establishing the information system
under subsection (a), the President, acting
through the Secretary of Defense, shall require an analysis of the production base for
not more than 2 weapons of each military
department which are major systems (as defined in section 2302(5) of title 10, United
States Code). Each such analysis shall identify the critical components of each system.
(3) Consultation regarding the census of manufacturers
(A) In general
The Secretary of Commerce, acting
through the Bureau of the Census, shall consult with the Secretary of Defense and the
Director of the Federal Emergency Management Agency to improve the usefulness of
information derived from the Census of Manufacturers in carrying out this section.
(B) Issues to be addressed
The consultation required under subparagraph (A) shall address improvements in the
level of detail, timeliness, and availability
of input and output analyses derived from
the Census of Manufacturers necessary to
carry out this section.
(c) Strategic plan for developing comprehensive
system
(1) Plan required
Not later than December 31, 1993, the President shall provide for the establishment of and
report to the Congress on a strategic plan for
developing a cost-effective, comprehensive information system capable of identifying on a
timely, ongoing basis vulnerability in critical
components and critical technology items.
(2) Assessment of certain procedures
In establishing the plan pursuant to paragraph (1), the President shall assess the performance and cost-effectiveness of procedures
implemented under subsection (b), and shall
seek to build upon such procedures, as appropriate.
(d) Capabilities of system
(1) In general
In connection with the establishment of the
information system under subsection (a), the
President shall direct the Secretary of Defense, the Secretary of Commerce, and the
heads of such other Federal agencies as the
President may determine to be appropriate—
(A) to consult with each other and provide
such information, assistance, and cooperation as may be necessary to establish and
maintain the information system required
by this section in a manner which allows the
coordinated and efficient entry of information on the domestic defense industrial base

§ 2171

into, and the withdrawal, subject to the protection of proprietary data, of information
on the domestic defense industrial base from
the system on an on-line interactive basis by
the Department of Defense;
(B) to assure access to the information on
the system, as appropriate, for all participating Federal agencies, including each
military department;
(C) to coordinate standards, definitions,
and specifications for information on defense
production, which is collected by the Department of Defense and the military departments so that such information can be
used by any Federal agency or department,
as the President determines to be appropriate; and
(D) to assure that the information in the
system is updated, as appropriate, with the
active assistance of the private sector.
(2) Task force on military-civilian participation
Upon the establishment of the information
system under subsection (a), the President
shall convene a task force consisting of the
Secretary of Defense, the Secretary of Commerce, the Secretary of each military department, and the heads of such other Federal
agencies and departments as the President
may determine to be appropriate to establish
guidelines and procedures to ensure that all
Federal agencies and departments which acquire information with respect to the domestic defense industrial base are fully participating in the system, unless the President determines that all appropriate Federal agencies
and departments, including each military department, are voluntarily providing information which is necessary for the system to
carry out the purposes of this Act [sections
2061 to 2171 of this Appendix] and chapter 148
of title 10, United States Code.
(e) Report on subcontractor and supplier base
(1) Report required
The President shall issue a report (in accordance with paragraph (4) 1 which includes—
(A) a list of critical components, technologies, and technology items for which
there is found to be inadequate domestic industrial capacity or capability; and
(B) an assessment of those subsectors of
the economy of the United States which—
(i) support production of any component,
technology, or technology item listed pursuant to subparagraph (A); or
(ii) have been identified as being critical
to the development and production of components required for the production of
weapons, weapon systems, and other military equipment essential to the national
defense.
(2) Matters to be considered
The assessment made under paragraph (1)(B)
shall include consideration of—
(A) the capacity of domestic sources, especially commercial firms, to fulfill peacetime
requirements and graduated mobilization re1 So in original. Probably should be followed by a closing
parenthesis.

§ 2181

TITLE 50, APPENDIX—WAR AND NATIONAL DEFENSE

quirements for various items of supply and
services;
(B) any trend relating to the capabilities
of domestic sources to meet such peacetime
and mobilization requirements;
(C) the extent to which the production or
acquisition of various items of military material is dependent on foreign sources; and
(D) any reason for the decline of the capabilities of selected sectors of the United
States economy necessary to meet peacetime and mobilization requirements, including—
(i) stability of defense requirements;
(ii) acquisition policies;
(iii) vertical integration of various segments of the industrial base;
(iv) superiority of foreign technology
and production efficiencies;
(v) foreign government support of nondomestic sources; and
(vi) offset arrangements.
(3) Policy recommendations
The report required by paragraph (1) may
provide specific policy recommendations to
correct deficiencies identified in the assessment, which would help to strengthen domestic sources.
(4) Time for issuance
The report required by paragraph (1) shall be
issued not later than July 1 of each even-numbered year which begins after 1992.
(5) Release of unclassified report
The report required by this subsection may
be classified. An unclassified version of the report shall be made available to the public.
(Sept. 8, 1950, ch. 932, title VII, § 722, as added
Pub. L. 102–558, title I, § 135, Oct. 28, 1992, 106
Stat. 4212.)
EFFECTIVE DATE
Section deemed to have become effective Mar. 1, 1992,
see section 304 of Pub. L. 102–558, set out as an Effective
Date of 1992 Amendment note under section 2062 of this
Appendix.
TERMINATION DATE
Termination of section, see section 2166(a) of this Appendix.

DOMESTIC MINERALS PROGRAM EXTENSION
ACT AUG. 7, 1953, CH. 339, 67 STAT. 417

Page 276

clared to be the policy of the Congress that each
department and agency of the Federal Government charged with responsibilities concerning
the discovery, development, production, and acquisition of strategic or critical minerals and
metals shall undertake to decrease further and
to eliminate where possible the dependency of
the United States on overseas sources of supply
of each such material.
(Aug. 7, 1953, ch. 339, § 2, 67 Stat. 417.)
SHORT TITLE
Section 1 of act Aug. 7, 1953, provided: ‘‘That this Act
[enacting sections 2181 to 2183 of this Appendix] may be
cited as the ‘Domestic Minerals Program Extension Act
of 1953’.’’
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 2182 of this Appendix.

§ 2182. Extension of termination dates of mineral
purchase programs
In accordance with the declaration of policy
set forth in section 2 of this Act [section 2181 of
this Appendix], the termination dates of all purchase programs designed to stimulate the domestic production of tungsten, manganese, chromite, mica, asbestos, beryl, and columbium-tantalum-bearing ores and concentrates and established by regulations issued pursuant to the Defense Production Act of 1950, as amended [sections 2061 to 2171 of this Appendix], shall be extended an additional two years: Provided, That
this section is not intended and shall not be construed to limit or restrict the regulatory agencies from extending the termination dates of
these programs beyond the two-year extension
periods provided by this section or from increasing the quantity of materials that may be delivered and accepted under these programs as permitted by existing statutory authority: Provided
further, That the extended termination date provided by this section for the columbium-tantalum purchase program shall not apply to the
purchase of columbium-tantalum-bearing ores
and concentrates of foreign origin.
(Aug. 7, 1953, ch. 339, § 3, 67 Stat. 417.)
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 2183 of this Appendix.

§ 2183. Quarterly ore reports to purchase program producers

Sec.

2181.
2182.
2183.

Congressional declaration of policy.
Extension of termination dates of mineral
purchase programs.
Quarterly ore reports to purchase program
producers.

§ 2181. Congressional declaration of policy
It is recognized that the continued dependence
on overseas sources of supply for strategic or
critical minerals and metals during periods of
threatening world conflict or of political instability within those nations controlling the
sources of supply of such materials gravely endangers the present and future economy and security of the United States. It is therefore de-

In order that those persons who produce or
who plan to produce under purchase programs
established pursuant to Public Law 774 (Eightyfirst Congress) [section 2061 to 2171 of this Appendix] and Public Law 96 (Eighty-second Congress) may be in position to plan their investment and production with due regard to requirements, the responsible agencies controlling such
purchase programs are directed to publish at the
end of each calendar quarter the amounts of
each of the ores and concentrates referred to in
section 3 [section 2182 of this Appendix] purchased in that quarter and the total amounts of
each which have been purchased under the program.