A bill to amend the Federal Nonnuclear Energy Research and Development Act to include loan guarantees for the construction of demonstration synthetic fuel plants.

Provides, under the Federal Nonnuclear Energy Research and Development Act, Federal loan guarantees for the construction of demonstration facilities built for the purpose of studying the feasibility of synthetic fuel plants. Sets forth requirements which must be met before a loan guarantee may be made.

Directs that the Governor and local officials of the State or community where the project is to be located shall be included in the early planning stages of such construction.

Creates within the Treasury a separate fund which shall be made available for purposes of this Act.

Requires that the Senate and House be given a complete report on each proposed guarantee or commitment to guarantee.

Limits the amount of such guarantees to 80 percent.

Authorizes full grants to any State which would be likely to be impacted by the construction of a facility. Directs that such grant shall cover the expense of studying and planning for the potential economic, social and environmental consequences of such a facility. Provides loans to States to provide needed public facilities and services for people affected by the demonstration project.

Directs that a report be made to the Congress making recommendations on the best opportunities to implement a program with the objective of conserving the equivalent of 1,000,000 barrels of oil per day by 1985.