Title XVII - Code 42 USC 16511

Page 8071

TITLE 42—THE PUBLIC HEALTH AND WELFARE

§ 16512

(Pub. L. 109–58, title XV, § 1514, Aug. 8, 2005, 119
Stat. 1090.)

subchapter XIII of this chapter and section 13557 of this
title.

REFERENCES IN TEXT

SUBCHAPTER XV—INCENTIVES FOR
INNOVATIVE TECHNOLOGIES

Section 8605 of title 7, referred to in subsec. (a), was
repealed by Pub. L. 110–246, title IX, § 9001(b), June 18,
2008, 122 Stat. 2095. Provisions relating to a Biomass Research and Development Technical Advisory Committee are now contained in section 8108(d) of title 7, Agriculture.

§ 16503. Sugar ethanol loan guarantee program
(a) In general
Funds may be provided for the cost (as defined
in section 661a of title 2) of loan guarantees issued under title XIV 1 to carry out commercial
demonstration projects for ethanol derived from
sugarcane, bagasse, and other sugarcane byproducts.
(b) Demonstration projects
The Secretary may issue loan guarantees
under this section to projects to demonstrate
commercially the feasibility and viability of
producing ethanol using sugarcane, sugarcane
bagasse, and other sugarcane byproducts as a
feedstock.
(c) Requirements
An applicant for a loan guarantee under this
section may provide assurances, satisfactory to
the Secretary, that—
(1) the project design has been validated
through the operation of a continuous process
facility;
(2) the project has been subject to a full
technical review;
(3) the project, with the loan guarantee, is
economically viable; and
(4) there is a reasonable assurance of repayment of the guaranteed loan.
(d) Limitations
(1) Maximum guarantee
Except as provided in paragraph (2), a loan
guarantee under this section—
(A) may be issued for up to 80 percent of
the estimated cost of a project; but
(B) shall not exceed $50,000,000 for any 1
project.
(2) Additional guarantees
(A) In general
The Secretary may issue additional loan
guarantees for a project to cover—
(i) up to 80 percent of the excess of actual project costs; but
(ii) not to exceed 15 percent of the
amount of the original loan guarantee.
(B) Principal and interest
Subject to subparagraph (A), the Secretary
shall guarantee 100 percent of the principal
and interest of a loan guarantee made under
subparagraph (A).
(Pub. L. 109–58, title XV, § 1516, Aug. 8, 2005, 119
Stat. 1091.)
REFERENCES IN TEXT
Title XIV, referred to in subsec. (a), is title XIV of
Pub. L. 109–58, Aug. 8, 2005, 119 Stat. 1061, which enacted
1 See

References in Text note below.

§ 16511. Definitions
In this subchapter:
(1) Commercial technology
(A) In general
The term ‘‘commercial technology’’ means
a technology in general use in the commercial marketplace.
(B) Inclusions
The term ‘‘commercial technology’’ does
not include a technology solely by use of the
technology in a demonstration project funded by the Department.
(2) Cost
The term ‘‘cost’’ has the meaning given the
term ‘‘cost of a loan guarantee’’ within the
meaning of section 661a(5)(C) of title 2.
(3) Eligible project
The term ‘‘eligible project’’ means a project
described in section 16513 of this title.
(4) Guarantee
(A) In general
The term ‘‘guarantee’’ has the meaning
given the term ‘‘loan guarantee’’ in section
661a of title 2.
(B) Inclusion
The term ‘‘guarantee’’ includes a loan
guarantee commitment (as defined in section 661a of title 2).
(5) Obligation
The term ‘‘obligation’’ means the loan or
other debt obligation that is guaranteed under
this section.
(Pub. L. 109–58, title XVII, § 1701, Aug. 8, 2005, 119
Stat. 1117.)
§ 16512. Terms and conditions
(a) In general
Except for division C of Public Law 108–324 [15
U.S.C. 720 et seq.], the Secretary shall make
guarantees under this or any other Act for
projects on such terms and conditions as the
Secretary determines, after consultation with
the Secretary of the Treasury, only in accordance with this section.
(b) Specific appropriation or contribution
(1) 1 In general
No guarantee shall be made unless—
(A) an appropriation for the cost of the
guarantee has been made;
(B) the Secretary has received from the
borrower a payment in full for the cost of
the guarantee and deposited the payment
into the Treasury; or
(C) a combination of one or more appropriations under subparagraph (A) and one or
more payments from the borrower under
1 So

in original. No par. (2) has been enacted.

§ 16512

TITLE 42—THE PUBLIC HEALTH AND WELFARE

subparagraph (B) has been made that is sufficient to cover the cost of the guarantee.
(c) Amount
Unless otherwise provided by law, a guarantee
by the Secretary shall not exceed an amount
equal to 80 percent of the project cost of the facility that is the subject of the guarantee, as estimated at the time at which the guarantee is
issued.
(d) Repayment
(1) In general
No guarantee shall be made unless the Secretary determines that there is reasonable
prospect of repayment of the principal and interest on the obligation by the borrower.
(2) Amount
No guarantee shall be made unless the Secretary determines that the amount of the obligation (when combined with amounts available to the borrower from other sources) will
be sufficient to carry out the project.
(3) Subordination
The obligation shall be subject to the condition that the obligation is not subordinate to
other financing.
(e) Interest rate
An obligation shall bear interest at a rate that
does not exceed a level that the Secretary determines appropriate, taking into account the prevailing rate of interest in the private sector for
similar loans and risks.
(f) Term
The term of an obligation shall require full repayment over a period not to exceed the lesser
of—
(1) 30 years; or
(2) 90 percent of the projected useful life of
the physical asset to be financed by the obligation (as determined by the Secretary).
(g) Defaults
(1) Payment by Secretary
(A) In general
If a borrower defaults on the obligation (as
defined in regulations promulgated by the
Secretary and specified in the guarantee
contract), the holder of the guarantee shall
have the right to demand payment of the unpaid amount from the Secretary.
(B) Payment required
Within such period as may be specified in
the guarantee or related agreements, the
Secretary shall pay to the holder of the
guarantee the unpaid interest on, and unpaid
principal of the obligation as to which the
borrower has defaulted, unless the Secretary
finds that there was no default by the borrower in the payment of interest or principal
or that the default has been remedied.
(C) Forbearance
Nothing in this subsection precludes any
forbearance by the holder of the obligation
for the benefit of the borrower which may be
agreed upon by the parties to the obligation
and approved by the Secretary.

Page 8072

(2) Subrogation
(A) In general
If the Secretary makes a payment under
paragraph (1), the Secretary shall be subrogated to the rights of the recipient of the
payment as specified in the guarantee or related agreements including, where appropriate, the authority (notwithstanding any
other provision of law) to—
(i) complete, maintain, operate, lease, or
otherwise dispose of any property acquired
pursuant to such guarantee or related
agreements; or
(ii) permit the borrower, pursuant to an
agreement with the Secretary, to continue
to pursue the purposes of the project if the
Secretary determines this to be in the public interest.
(B) Superiority of rights
The rights of the Secretary, with respect
to any property acquired pursuant to a guarantee or related agreements, shall be superior to the rights of any other person with
respect to the property.
(C) Terms and conditions
A guarantee agreement shall include such
detailed terms and conditions as the Secretary determines appropriate to—
(i) protect the interests of the United
States in the case of default; and
(ii) have available all the patents and
technology necessary for any person selected, including the Secretary, to complete and operate the project.
(3) Payment of principal and interest by Secretary
With respect to any obligation guaranteed
under this section, the Secretary may enter
into a contract to pay, and pay, holders of the
obligation, for and on behalf of the borrower,
from funds appropriated for that purpose, the
principal and interest payments which become
due and payable on the unpaid balance of the
obligation if the Secretary finds that—
(A)(i) the borrower is unable to meet the
payments and is not in default;
(ii) it is in the public interest to permit
the borrower to continue to pursue the purposes of the project; and
(iii) the probable net benefit to the Federal
Government in paying the principal and interest will be greater than that which would
result in the event of a default;
(B) the amount of the payment that the
Secretary is authorized to pay shall be no
greater than the amount of principal and interest that the borrower is obligated to pay
under the agreement being guaranteed; and
(C) the borrower agrees to reimburse the
Secretary for the payment (including interest) on terms and conditions that are satisfactory to the Secretary.
(4) Action by Attorney General
(A) Notification
If the borrower defaults on an obligation,
the Secretary shall notify the Attorney General of the default.

Page 8073

TITLE 42—THE PUBLIC HEALTH AND WELFARE

(B) Recovery
On notification, the Attorney General
shall take such action as is appropriate to
recover the unpaid principal and interest
due from—
(i) such assets of the defaulting borrower
as are associated with the obligation; or
(ii) any other security pledged to secure
the obligation.
(h) Fees
(1) In general
The Secretary shall charge and collect fees
for guarantees in amounts the Secretary determines are sufficient to cover applicable administrative expenses.
(2) Availability
Fees collected under this subsection shall—
(A) be deposited by the Secretary into the
Treasury; and
(B) remain available until expended, subject to such other conditions as are contained in annual appropriations Acts.
(i) Records; audits
(1) In general
A recipient of a guarantee shall keep such
records and other pertinent documents as the
Secretary shall prescribe by regulation, including such records as the Secretary may require to facilitate an effective audit.
(2) Access
The Secretary and the Comptroller General
of the United States, or their duly authorized
representatives, shall have access, for the purpose of audit, to the records and other pertinent documents.
(j) Full faith and credit
The full faith and credit of the United States
is pledged to the payment of all guarantees issued under this section with respect to principal
and interest.
(k) Wage rate requirements
All laborers and mechanics employed by contractors and subcontractors in the performance
of construction work financed in whole or in
part by a loan guaranteed under this subchapter
shall be paid wages at rates not less than those
prevailing on projects of a character similar in
the locality as determined by the Secretary of
Labor in accordance with subchapter IV of chapter 31 of title 40. With respect to the labor standards in this subsection, the Secretary of Labor
shall have the authority and functions set forth
in Reorganization Plan Numbered 14 of 1950 (64
Stat. 1267; 5 U.S.C. App.) and section 3145 of title
40.
(Pub. L. 109–58, title XVII, § 1702, Aug. 8, 2005, 119
Stat. 1117; Pub. L. 111–85, title III, § 310, Oct. 28,
2009, 123 Stat. 2873; Pub. L. 112–74, div. B, title
III, § 305(1), Dec. 23, 2011, 125 Stat. 877.)
REFERENCES IN TEXT
Division C of Public Law 108–324, referred to in subsec. (a), is division C of Pub. L. 108–324, Oct. 13, 2004, 118
Stat. 1255, known as the Alaska Natural Gas Pipeline
Act, which is classified principally to chapter 15D (§ 720
et seq.) of Title 15, Commerce and Trade. For complete

§ 16513

classification of division C to the Code, see Short Title
note set out under section 720 of Title 15 and Tables.
Reorganization Plan Numbered 14 of 1950, referred to
in subsec. (k), is set out in the Appendix to Title 5,
Government Organization and Employees.
AMENDMENTS
2011—Subsec. (b). Pub. L. 112–74 added subsec. (b) and
struck out former subsec. (b). Prior to amendment, text
read as follows: ‘‘No guarantee shall be made unless—
‘‘(1) an appropriation for the cost has been made; or
‘‘(2) the Secretary has received from the borrower a
payment in full for the cost of the obligation and deposited the payment into the Treasury.’’
2009—Subsec. (k). Pub. L. 111–85 added subsec. (k).

§ 16513. Eligible projects
(a) In general
The Secretary may make guarantees under
this section only for projects that—
(1) avoid, reduce, or sequester air pollutants
or anthropogenic emissions of greenhouse
gases; and
(2) employ new or significantly improved
technologies as compared to commercial technologies in service in the United States at the
time the guarantee is issued.
(b) Categories
Projects from the following categories shall be
eligible for a guarantee under this section:
(1) Renewable energy systems.
(2) Advanced fossil energy technology (including coal gasification meeting the criteria
in subsection (d)).
(3) Hydrogen fuel cell technology for residential, industrial, or transportation applications.
(4) Advanced nuclear energy facilities.
(5) Carbon capture and sequestration practices and technologies, including agricultural
and forestry practices that store and sequester
carbon.
(6) Efficient electrical generation, transmission, and distribution technologies.
(7) Efficient end-use energy technologies.
(8) Production facilities for the manufacture
of fuel efficient vehicles or parts of those vehicles, including electric drive vehicles and advanced diesel vehicles.
(9) Pollution control equipment.
(10) Refineries, meaning facilities at which
crude oil is refined into gasoline.
(c) Gasification projects
The Secretary may make guarantees for the
following gasification projects:
(1) Integrated gasification combined cycle
projects
Integrated gasification combined cycle
plants meeting the emission levels under subsection (d), including—
(A) projects for the generation of electricity—
(i) for which, during the term of the
guarantee—
(I) coal, biomass, petroleum coke, or a
combination of coal, biomass, and petroleum coke will account for at least 65
percent of annual heat input; and
(II) electricity will account for at least
65 percent of net useful annual energy
output;

§ 16514

TITLE 42—THE PUBLIC HEALTH AND WELFARE

(ii) that have a design that is determined
by the Secretary to be capable of accommodating the equipment likely to be necessary to capture the carbon dioxide that
would otherwise be emitted in flue gas
from the plant;
(iii) that have an assured revenue stream
that covers project capital and operating
costs (including servicing all debt obligations covered by the guarantee) that is approved by the Secretary and the relevant
State public utility commission; and
(iv) on which construction commences
not later than the date that is 3 years
after the date of the issuance of the guarantee;
(B) a project to produce energy from coal
(of not more than 13,000 Btu/lb and mined in
the western United States) using appropriate
advanced integrated gasification combined
cycle technology that minimizes and offers
the potential to sequester carbon dioxide
emissions and that—
(i) may include repowering of existing facilities;
(ii) may be built in stages;
(iii) shall have a combined output of at
least 100 megawatts;
(iv) shall be located in a western State
at an altitude greater than 4,000 feet; and
(v) shall demonstrate the ability to use
coal with an energy content of not more
than 9,000 Btu/lb;
(C) a project located in a taconite-producing region of the United States that is entitled under the law of the State in which the
plant is located to enter into a long-term
contract approved by a State public utility
commission to sell at least 450 megawatts of
output to a utility;
(D) facilities that—
(i) generate one or more hydrogen-rich
and carbon monoxide-rich product streams
from the gasification of coal or coal waste;
and
(ii) use those streams to facilitate the
production of ultra clean premium fuels
through the Fischer-Tropsch process; and
(E) a project to produce energy and clean
fuels, using appropriate coal liquefaction
technology, from Western bituminous or
subbituminous coal, that—
(i) is owned by a State government; and
(ii) may include tribal and private coal
resources.
(2) Industrial gasification projects
Facilities that gasify coal, biomass, or petroleum coke in any combination to produce
synthesis gas for use as a fuel or feedstock and
for which electricity accounts for less than 65
percent of the useful energy output of the facility.
(3) Petroleum coke gasification projects
The Secretary is encouraged to make loan
guarantees under this subchapter available for
petroleum coke gasification projects.
(4) Liquefaction project
Notwithstanding any other provision of law,
funds awarded under the Department of Ener-

Page 8074

gy’s Clean Coal Power Initiative for FischerTropsch coal-to-oil liquefaction projects may
be used to finance the cost of loan guarantees
for projects awarded such funds.
(d) Emission levels
In addition to any other applicable Federal or
State emission limitation requirements, a
project shall attain at least—
(1) total sulfur dioxide emissions in flue gas
from the project that do not exceed 0.05 lb/
MMBtu;
(2) a 90-percent removal rate (including any
fuel pretreatment) of mercury from the coalderived gas, and any other fuel, combusted by
the project;
(3) total nitrogen oxide emissions in the flue
gas from the project that do not exceed 0.08 lb/
MMBtu; and
(4) total particulate emissions in the flue gas
from the project that do not exceed 0.01 lb/
MMBtu.
(e) Qualification of facilities receiving tax credits
A project that receives tax credits for clean
coal technology shall not be disqualified from
receiving a guarantee under this subchapter.
(Pub. L. 109–58, title XVII, § 1703, Aug. 8, 2005, 119
Stat. 1120; Pub. L. 109–168, § 1(b)(1), Jan. 10, 2006,
119 Stat. 3580; Pub. L. 110–140, title I, § 134(b),
Dec. 19, 2007, 121 Stat. 1513.)
AMENDMENTS
2007—Subsec. (b)(8). Pub. L. 110–140 added par. (8) and
struck out former par. (8) which read as follows: ‘‘Production facilities for fuel efficient vehicles, including
hybrid and advanced diesel vehicles.’’
2006—Subsec. (c)(4). Pub. L. 109–168 substituted ‘‘Department of Energy’s Clean Coal Power Initiative for
Fischer-Tropsch’’ for ‘‘clean coal power initiative
under part A of subchapter IV for’’.
EFFECTIVE DATE OF 2007 AMENDMENT
Amendment by Pub. L. 110–140 effective on the date
that is 1 day after Dec. 19, 2007, see section 1601 of Pub.
L. 110–140, set out as an Effective Date note under section 1824 of Title 2, The Congress.

§ 16514. Authorization of appropriations
(a) In general
There are authorized to be appropriated such
sums as are necessary to provide the cost of
guarantees under this subchapter.
(b) Use of other appropriated funds
The Department may use amounts awarded
under the Clean Coal Power Initiative to carry
out the project described in section 16513(c)(1)(C)
of this title, on the request of the recipient of
such award, for a loan guarantee, to the extent
that the amounts have not yet been disbursed
to, or have been repaid by, the recipient.
(Pub. L. 109–58, title XVII, § 1704, Aug. 8, 2005, 119
Stat. 1122; Pub. L. 109–168, § 1(b)(2), Jan. 10, 2006,
119 Stat. 3580.)
AMENDMENTS
2006—Subsec. (b). Pub. L. 109–168 substituted ‘‘Clean
Coal Power Initiative’’ for ‘‘clean coal power initiative
under part A of subchapter IV’’.

Page 8075

TITLE 42—THE PUBLIC HEALTH AND WELFARE

§ 16515. Limitation on commitments to guarantee
loans
(a) Notwithstanding section 101,1 subject to
the Federal Credit Reform Act of 1990, as amended [2 U.S.C. 661 et seq.], commitments to guarantee loans under title XVII of the Energy Policy
Act of 2005 [42 U.S.C. 16501 et seq.] shall not exceed a total principal amount, any part of which
is to be guaranteed, of $4,000,000,000: Provided,
That there are appropriated for the cost of the
guaranteed loans such sums as are hereafter derived from amounts received from borrowers
pursuant to section 16512(b)(2) of this title, to remain available until expended: Provided further,
That the source of payments received from borrowers for the subsidy cost shall not be a loan or
other debt obligation that is made or guaranteed by the Federal government.2 In addition,
fees collected pursuant to section 16512(h) of this
title in fiscal year 2007 shall be credited as offsetting collections to the Departmental Administration account for administrative expenses of
the Loan Guarantee Program: Provided further,
That the sum appropriated for administrative
expenses for the Loan Guarantee Program shall
be reduced by the amount of fees received during
fiscal year 2007: Provided further, That any fees
collected under section 16512(h) of this title in
excess of the amount appropriated for administrative expenses shall not be available until appropriated.
(b) No loan guarantees may be awarded under
title XVII of the Energy Policy Act of 2005 [42
U.S.C. 16501 et seq.] until final regulations are
issued that include—
(1) programmatic, technical, and financial
factors the Secretary will use to select
projects for loan guarantees;
(2) policies and procedures for selecting and
monitoring lenders and loan performance; and
(3) any other policies, procedures, or information necessary to implement title XVII of
the Energy Policy Act of 2005.
(c) The Secretary of Energy shall enter into an
arrangement with an independent auditor for
annual evaluations of the program under title
XVII of the Energy Policy Act of 2005 [42 U.S.C.
16501 et seq.]. In addition to the independent
audit, the Comptroller General shall conduct an
annual review of the Department’s execution of
the program under title XVII of the Energy Policy Act of 2005. The results of the independent
audit and the Comptroller General’s review shall
be provided directly to the Committees on Appropriations of the House of Representatives and
the Senate.
(d) The Secretary of Energy shall promulgate
final regulations for loan guarantees under title
XVII of the Energy Policy Act of 2005 [42 U.S.C.
16501 et seq.] within 6 months of February 15,
2007.
(e) Not later than 120 days after February 15,
2007, and annually thereafter, the Secretary of
Energy shall transmit to the Committees on Appropriations of the House of Representatives and
the Senate a report containing a summary of all
activities under title XVII of the Energy Policy
1 See
2 So

References in Text note below.
in original. Probably should be capitalized.

§ 16516

Act of 2005 [42 U.S.C. 16501 et seq.], beginning in
fiscal year 2007, with a listing of responses to
loan guarantee solicitations under this subchapter, describing the technologies, amount of
loan guarantee sought, and the applicants’ assessment of risk.
(Pub. L. 109–289, div. B, title II, § 20320, as added
Pub. L. 110–5, § 2, Feb. 15, 2007, 121 Stat. 21.)
REFERENCES IN TEXT
Section 101, referred to in subsec. (a), is section 101 of
title I of div. B of Pub. L. 109–289, as added by Pub. L.
110–5, § 2, Feb. 15, 2007, 121 Stat. 8. Subsec. (b) of section
101 is classified as a note under section 12651i of this
title. Subsecs. (a) and (c) of section 101 are not classified to the Code.
The Federal Credit Reform Act of 1990, referred to in
subsec. (a), is title V of Pub. L. 93–344, as added by Pub.
L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104 Stat.
1388–609, which is classified generally to subchapter III
(§ 661 et seq.) of chapter 17A of Title 2, The Congress.
For complete classification of this Act to the Code, see
Short Title note set out under section 621 of Title 2 and
Tables.
The Energy Policy Act of 2005, referred to in text, is
Pub. L. 109–58, Aug. 8, 2005, 119 Stat. 594. Title XVII of
the Act is classified generally to this subchapter. For
complete classification of this Act to the Code, see
Short Title note set out under section 15801 of this title
and Tables.
CODIFICATION
Section was enacted as part of the Continuing Appropriations Resolution, 2007, and not as part of the Energy Policy Act of 2005 which comprises this chapter.

§ 16516. Temporary program for rapid deployment of renewable energy and electric power
transmission projects
(a) In general
Notwithstanding section 16513 of this title, the
Secretary may make guarantees under this section only for the following categories of projects
that commence construction not later than September 30, 2011:
(1) Renewable energy systems, including incremental hydropower, that generate electricity or thermal energy, and facilities that
manufacture related components.
(2) Electric power transmission systems, including
upgrading
and
reconductoring
projects.
(3) Leading edge biofuel projects that will
use technologies performing at the pilot or
demonstration scale that the Secretary determines are likely to become commercial technologies and will produce transportation fuels
that substantially reduce life-cycle greenhouse gas emissions compared to other transportation fuels.
(b) Factors relating to electric power transmission systems
In determining to make guarantees to projects
described in subsection (a)(2), the Secretary may
consider the following factors:
(1) The viability of the project without guarantees.
(2) The availability of other Federal and
State incentives.
(3) The importance of the project in meeting
reliability needs.
(4) The effect of the project in meeting a
State or region’s environment (including climate change) and energy goals.

§ 16521

TITLE 42—THE PUBLIC HEALTH AND WELFARE

(c) Wage rate requirements
The Secretary shall require that each recipient of support under this section provide reasonable assurance that all laborers and mechanics
employed in the performance of the project for
which the assistance is provided, including those
employed by contractors or subcontractors, will
be paid wages at rates not less than those prevailing on similar work in the locality as determined by the Secretary of Labor in accordance
with subchapter IV of chapter 31 of part A of
subtitle II of title 40 (commonly referred to as
the ‘‘Davis-Bacon Act’’).
(d) Limitation
Funding under this section for projects described in subsection (a)(3) shall not exceed
$500,000,000.
(e) Sunset
The authority to enter into guarantees under
this section shall expire on September 30, 2011.
(Pub. L. 109–58, title XVII, § 1705, as added Pub.
L. 111–5, div. A, title IV, § 406(a), Feb. 17, 2009, 123
Stat. 145.)
SUBCHAPTER XVI—STUDIES
§ 16521. Report on energy integration with Latin
America
The Secretary shall submit an annual report
to the Committee on Energy and Commerce of
the United States House of Representatives and
to the Committee on Energy and Natural Resources of the Senate concerning the status of
energy export development in Latin America
and efforts by the Secretary and other departments and agencies of the United States to promote energy integration with Latin America.
The report shall contain a detailed analysis of
the status of energy export development in Mexico and a description of all significant efforts by
the Secretary and other departments and agencies to promote a constructive relationship with
Mexico regarding the development of that nation’s energy capacity. In particular this report
shall outline efforts the Secretary and other departments and agencies have made to ensure
that regulatory approval and oversight of
United States/Mexico border projects that result
in the expansion of Mexican energy capacity are
effectively coordinated across departments and
with the Mexican government.
(Pub. L. 109–58, title XVIII, § 1807, Aug. 8, 2005,
119 Stat. 1124.)
§ 16522. Low-volume gas reservoir study
(a) Study
The Secretary shall make a grant to an organization of oil and gas producing States, specifically those containing significant numbers of
marginal oil and natural gas wells, for conducting an annual study of low-volume natural gas
reservoirs. Such organization shall work with
the State geologist of each State being studied.
(b) Contents
The studies under this section shall—
(1) determine the status and location of marginal wells and gas reservoirs;

Page 8076

(2) gather the production information of
these marginal wells and reservoirs;
(3) estimate the remaining producible reserves based on variable pipeline pressures;
(4) locate low-pressure gathering facilities
and pipelines;
(5) recommend incentives which will enable
the continued production of these resources;
(6) produce maps and literature to disseminate to States to promote conservation of natural gas reserves; and
(7) evaluate the amount of natural gas that
is being wasted through the practice of venting or flaring of natural gas produced in association with crude oil well production.
(c) Data analysis
Data development and analysis under this section shall be performed by an institution of
higher education with GIS capabilities. If the
organization receiving the grant under subsection (a) does not have GIS capabilities, such
organization shall contract with one or more entities with—
(1) technological capabilities and resources
to perform advanced image processing, GIS
programming, and data analysis; and
(2) the ability to—
(A) process remotely sensed imagery with
high spatial resolution;
(B) deploy global positioning systems;
(C) process and synthesize existing, variable-format gas well, pipeline, gathering facility, and reservoir data;
(D) create and query GIS databases with
infrastructure location and attribute information;
(E) write computer programs to customize
relevant GIS software;
(F) generate maps, charts, and graphs
which summarize findings from data research for presentation to different audiences; and
(G) deliver data in a variety of formats, including Internet Map Server for query and
display, desktop computer display, and access through handheld personal digital assistants.
(d) Authorization of appropriations
There are authorized to be appropriated to the
Secretary for carrying out this section—
(1) $1,500,000 for fiscal year 2006; and
(2) $450,000 for each of the fiscal years 2007
through 2010.
(e) Definitions
For purposes of this section, the term ‘‘GIS’’
means geographic information systems technology that facilitates the organization and
management of data with a geographic component.
(Pub. L. 109–58, title XVIII, § 1808, Aug. 8, 2005,
119 Stat. 1124.)
§ 16523. Alaska natural gas pipeline
Not later than 180 days after August 8, 2005,
and every 180 days thereafter until the Alaska
natural gas pipeline commences operation, the
Federal Energy Regulatory Commission shall
submit to Congress a report describing—