§8322 — Title 42 The Public Health and Welfare | U.S. Code

Summary

The Secretary must or may give a permanent OK for a power plant to use natural gas or oil instead of the banned fuels when the plant owner asks and proves certain things. If the owner shows — even after trying hard and acting in good faith — that coal or another usable fuel either will not be available during the first 10 years of the plant’s useful life or will cost much more (using the Secretary’s cost rules), or that site limits block using those fuels, or that using them would break environmental rules, or that using them would stop the owner from getting financing, the Secretary must grant the exemption. The owner’s proof must cover the chosen site and reasonable alternative sites. The Secretary also must grant an exemption if the plant will mix gas or oil with coal and the gas/oil share stays at the minimum percent of total Btu heat input needed for reliable, reasonably efficient operation (as the Secretary’s rules say), or if the plant will be used only for emergencies (as defined by the Secretary). The Secretary may grant an exemption when a state or local rule (not a building code, a nuisance rule, or a zoning law) makes coal use at the site impossible, and no reasonable alternative site meets the criteria above, and the exemption would serve the public interest and the law’s purposes. For cogeneration plants, the Secretary may grant an exemption if the owner shows that the economic and other benefits of cogeneration require using gas or oil, and the final order must explain why. The Secretary may also grant an exemption to prevent harm to reliability if the owner cannot meet the other proof requirements in time despite diligent efforts.

Title 42, §8322

The Public Health and Welfare — Source: USLM XML via OLRC

(a)(1)After consideration of a petition (and comments thereon) for an exemption for a powerplant from the prohibitions of part A, the Secretary shall, by order, grant a permanent exemption under this subsection with respect to natural gas or petroleum, if he finds that the petitioner has demonstrated that despite diligent good faith efforts—

(A)it is likely that an adequate and reliable supply of coal or other alternate fuel of the quality necessary to conform with design and operational requirements for use as a primary energy source (i) will not be available within the first 10 years of the useful life of the powerplant, or (ii) will not be available at a cost (taking into account associated facilities for the transportation and use of such fuel) which, based upon the best practicable estimates, does not substantially exceed the cost, as determined by rule by the Secretary, of the fuel that would be used as a primary energy source during the useful life of the powerplant involved;

(B)one or more site limitations exist which would not permit the location or operation of such powerplant using coal or any other alternate fuel as a primary energy source;

(C)the prohibitions of part A could not be satisfied without violating applicable environmental requirements; or

(D)the required use of coal or any other alternate fuel would not allow the petitioner to obtain adequate capital for the financing of such powerplant.

(2)The demonstration required to be made by a petitioner under paragraph (1) shall be made with respect to the site of such powerplant and reasonable alternative sites.

(b)After consideration of a petition (and comments thereon) for an exemption for a powerplant from the prohibitions of part A, the Secretary may, by order, grant a permanent exemption under this subsection with respect to natural gas or petroleum, if he finds that the petitioner has demonstrated that—

(1)with respect to the proposed site of the powerplant, the construction or operation of such a facility using coal or any other alternate fuel is infeasible because of a State or local requirement (other than a building code or a nuisance or zoning law);

(2)there is no reasonable alternative site for such powerplant which meets the criteria set forth in subsection (a)(1)(A) through (D); and

(3)the granting of the exemption would be in the public interest and would be consistent with the purposes of this chapter.

(c)After consideration of a petition (and comments thereon) for an exemption from one or more of the prohibitions of part A for a cogeneration facility, the Secretary may, by order, grant a permanent exemption under this subsection with respect to natural gas or petroleum, if he—

(1)finds that the petitioner has demonstrated that economic and other benefits of cogeneration are unobtainable unless petroleum or natural gas, or both, are used in such facility, and

(2)includes in the final order a statement of the basis for such finding.

(d)After consideration of a petition (and comments thereon) for an exemption for a powerplant from the prohibitions of part A, the Secretary shall, by order, grant a permanent exemption under this subsection with respect to natural gas or petroleum, if he finds that the petitioner has demonstrated that—

(1)the powerplant uses, or proposes to use, a mixture of petroleum or natural gas and coal or another alternate fuel as a primary energy source; and

(2)the amount of the petroleum or natural gas used in such mixture will not exceed the minimum percentage of the total Btu heat input of the primary energy sources of such powerplant needed to maintain reliability of operation of such powerplant consistent with maintaining a reasonable level of fuel efficiency, as determined in accordance with rules prescribed by the Secretary.

(e)After consideration of a petition (and comments thereon) for an exemption from one or more of the prohibitions of part A for a powerplant, the Secretary shall, by order, grant a permanent exemption under this subsection with respect to natural gas or petroleum, if he finds that the petitioner has demonstrated that such powerplant will be maintained and operated only for emergency purposes (as defined by rule by the Secretary).

(f)After consideration of a petition (and comments thereon) for an exemption for a powerplant from one or more of the prohibitions of part A, the Secretary may, by order, grant a permanent exemption under this subsection with respect to natural gas or petroleum if he finds that the petitioner has demonstrated that—

(1)such exemption is necessary to prevent impairment of reliability of service, and

(2)the petitioner, despite diligent good faith efforts, is not able to make the demonstration necessary to obtain an exemption under subsection (a) or (b) in the time required to prevent such impairment of service.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsec. (b)(3), was in the original “this Act”, meaning Pub. L. 95–620, Nov. 9, 1978, 92 Stat. 3289, known as the Powerplant and Industrial Fuel Use Act of 1978, which is classified principally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 8301 of this title and Tables.

Amendments

1987—Subsec. (a)(1). Pub. L. 100–42, § 1(c)(6)(A)–(C), substituted “from” for “or installation from one or more of” in introductory provisions, substituted “the fuel that would be used” for “using imported petroleum” and struck out “or installation” after “powerplant” wherever appearing in subpar. (A), and struck out “or installation” after “powerplant” in subpars. (B) and (D). Subsec. (a)(2). Pub. L. 100–42, § 1(c)(1)(D), struck out “— “(A) in the case of a new major fuel-burning installation, be made with respect to the site of such installation proposed by the petitioner; and “(B) in the case of a new electric powerplant,” after “paragraph (1) shall”. Subsec. (a)(3). Pub. L. 100–42, § 1(c)(6)(E), struck out par. (3) which read as follows: “Notwithstanding the preceding provisions of this subsection, a powerplant which has been granted an exemption under subsection (h) may not be granted an exemption under this subsection.” Subsec. (b). Pub. L. 100–42, § 1(c)(6)(A), (B), (F), in introductory provisions substituted “from” for “or installation from one or more of”, in par. (1) struck out “or installation” after “powerplant”, and in par. (2) struck out “in the case of a powerplant,” after “(2)”. Subsec. (d). Pub. L. 100–42, § 1(c)(6)(A), (B), (G), struck out “(1)” before “After consideration of”, substituted “from” for “installation from one or more of” in introductory provisions, redesignated subpars. (A) and (B) of former par. (1) as pars. (1) and (2), respectively, struck out “or installation” after “powerplant” wherever appearing in such pars., and struck out former par. (2) which read as follows: “In the case of a new major fuel-burning installation, the percentage determined by the Secretary under subparagraph (B) of paragraph (1) shall not be less than 25 percent.” Subsec. (e). Pub. L. 100–42, § 1(c)(6)(B), struck out “or installation” after “powerplant” wherever appearing. Subsec. (g). Pub. L. 100–42, § 1(c)(6)(H), struck out subsec. (g) which related to issuance, by order of Secretary of Energy, of permanent exemptions for use of natural gas or petroleum for peakload powerplants. Subsec. (h). Pub. L. 100–42, § 1(c)(6)(H), struck out subsec. (h) which related to issuance, by order of Secretary of Energy, of permanent exemptions for use of petroleum for intermediate load powerplants. Subsec. (i). Pub. L. 100–42, § 1(c)(6)(H), struck out subsec. (i) which related to issuance, by order of Secretary of Energy, of permanent exemptions for use of natural gas or petroleum for installations based upon product or process requirements. Subsec. (j). Pub. L. 100–42, § 1(c)(6)(H), struck out subsec. (j) which related to issuance, by order of Secretary of Energy, of permanent exemptions for use of natural gas or petroleum for installations necessary to meet scheduled equipment outages.

Statutory Notes and Related Subsidiaries

Exemption for Certain Electric Powerplants as Effective Prior to 180 Days After November 9, 1978For effectiveness of exemption for certain electric powerplants as prior to 180 days after Nov. 9, 1978, see section 902(a) of Pub. L. 95–620, set out as a note under section 8301 of this title.

§8322 Permanent exemptions