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§ 3806. —  Demonstrations.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 15USC3806]

 
                      TITLE 15--COMMERCE AND TRADE
 
     CHAPTER 64--METHANE TRANSPORTATION RESEARCH, DEVELOPMENT, AND 
                              DEMONSTRATION
 
Sec. 3806. Demonstrations


(a) Development of data assessing current state-of-the-art

    Not later than January 1, 1982, the Secretary shall develop data 
assessing the current state-of-the-art with respect to vehicles fueled 
by methane to serve as baseline data to be utilized in evaluating 
improvements in methane-fueled vehicle technologies.

(b) Guidelines; promulgation, criteria, scope, etc.

    Not later than April 1, 1982, the Secretary shall have promulgated 
necessary and appropriate guidelines for demonstrations and issued an 
initial request for proposals for technical and financial assistance to 
support public and private entities in developing and implementing 
demonstration projects to gather data on the operation of methane-fueled 
vehicles and methane transmission, storage, and dispensing facilities, 
under differing climatic, atmospheric, and operating conditions and on 
design and technical modifications of those vehicles and facilities:
        (1) In the case of public entities, the Secretary is authorized 
    to provide--
            (A) technical assistance reasonably associated with the 
        modification or acquisition of vehicles to be fueled by methane 
        or with dual fuel capacity, the installation of methane 
        transmission, storage and dispensing facilities, and compliance 
        with data acquisition and reporting requirements under this 
        chapter; and
            (B) grants to cover up to 50 per centum of reasonable and 
        necessary costs associated with the installation of methane 
        transmission, storage and dispensing facilities: Provided, That 
        the Secretary shall be authorized to direct and require 
        recipients of assistance under this section to enter into 
        cooperative agreements for the planning and use of such 
        facilities with other recipients of assistance under this 
        section, under a cost-sharing agreement where appropriate and 
        economical.

        (2)(A) In the case of private entities, the Secretary is 
    authorized to provide--
            (i) technical assistance reasonably associated with the 
        modification or acquisition of vehicles to be fueled by methane 
        or with dual fuel capacity, the installation of methane 
        transmission, storage and dispensing facilities, and compliance 
        with data acquisition and reporting requirements under this 
        chapter; and
            (ii) loans to cover up to 50 per centum of reasonable and 
        necessary costs associated with the installation of methane 
        transmission, storage and dispensing facilities: Provided, That 
        the Secretary shall be authorized to direct and require 
        recipients of assistance under this section to enter into 
        cooperative agreements for the planning and use of such 
        facilities with other recipients of assistance under this 
        section, under a cost-sharing agreement where appropriate and 
        economical.

        (B) Loans issued under this section shall bear interest at such 
    rate as the Secretary may determine, giving consideration to the 
    needs and capacities of the recipient and the prevailing rates of 
    interest (public and private), except that such rate shall not be 
    less than a rate determined by the Secretary of the Treasury, taking 
    into consideration the current average yield on outstanding 
    marketable obligations of the United States with remaining periods 
    of maturity comparable to the average maturities of such loans. No 
    loan shall be made unless the Secretary shall have determined that 
    there is reasonable prospect of repayment.
        (C) The terms and conditions of loans issued under this section 
    shall take into account the scope of the particular demonstration 
    and any particular conditions which might reasonably be expected to 
    result in additional costs to the recipient, and shall reflect the 
    relative costs of gasoline and diesel fuel and methane and the 
    projected savings in fuel costs to the recipient as a result of 
    participating in the demonstration. In no instance shall a loan 
    issued under this section be for a period in excess of five years.
        (3) The Secretary shall provide for appropriate assistance to 
    defray costs associated with complying with data acquisition and 
    reporting requirements under this chapter.
        (4) In the case of an organization comprised of both public and 
    private entities, a package of technical and financial assistance 
    shall be designed to the maximum extent feasible, in such a manner 
    as to assist its public components as provided for in paragraph (1) 
    and to assist its private components as provided for in paragraph 
    (2) of this section.

(c) Fiscal year limitations

    Not fewer than fifty demonstrations shall be assisted under this 
section with not fewer than ten being initiated in the fiscal year 
ending September 30, 1982, and not fewer than twenty being initiated in 
each of the fiscal years ending September 30, 1983, and September 30, 
1984. In the case of demonstrations initiated under this chapter after 
the first fiscal year in which demonstrations are funded, the Secretary 
shall ascertain that plans for such demonstrations take into 
consideration information and findings included in reports filed on 
other demonstrations assisted under this chapter.

(d) Duration; recordkeeping requirements

    Each demonstration shall have a duration of at least three years 
during which time records including, but not limited to, fuel efficiency 
indicators, emissions data, repair statistics, and detailed reports of 
any accidents, shall be maintained and reports made to the Secretary in 
accordance with guidelines promulgated by the Secretary prior to 
issuance of the first loan or grant under this section and amended no 
more often than twice annually.

(e) Selection of proposed demonstrations; discretionary and mandatory 
        criteria

    In selecting proposed demonstrations to be supported under this 
section, the Secretary shall, to the maximum extent practicable, assure 
representation of diverse operating conditions and vehicle types 
including, but not limited to--
        (1) altitude and topography,
        (2) climatic conditions,
        (3) air quality conditions,
        (4) industrial, commercial, and agricultural uses,
        (5) varying vehicular structures, and
        (6) average trip lengths:

Provided, however, That not fewer than two demonstrations initiated in 
each year shall be located in a county or standard metropolitan 
statistical area designated by the Secretary upon recommendation of the 
Administrator of the Environmental Protection Agency based on severity 
or uniqueness of air quality conditions: And provided further, That the 
fleet or portions of fleets participating in each demonstration with 
funding under this chapter shall consist of not fewer than fifty 
vehicles except in the case of one demonstration each year involving 
methane-fueled off-road agricultural equipment.

(Pub. L. 96-512, Sec. 7, Dec. 12, 1980, 94 Stat. 2830.)

                  Section Referred to in Other Sections

    This section is referred to in sections 3804, 3807, 3809 of this 
title.



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