A bill to amend title II of the Comprehensive Employment and Training Act to provide for the assessment of manpower needs for the full development of domestic energy resources.

(Reported to House from the Committee on Education and Labor with amendment, H. Rept. 96-333)

=Title I: Grants for Energy Manpower Training= - Amends title III of the Comprehensive Employment and Training Act (CETA) to authorize the Secretary of Labor to make grants to States or local public agencies to train individuals for jobs needed to supply the manpower necessary for the development and expansion of the synthetic fuel industry. Defines "synthetic fuel" as gaseous or liquid fuel produced from coal, shale, lignite, peat, solid waste, or other minerals or organic materials (other than oil, gas, or their derivatives). Requires that applications for such training grants be submitted to the Secretary for approval. Authorizes the appropriation of $100,000,000 for each of fiscal years 1980, 1981, and 1982 for the purposes of this title in addition to appropriations currently authorized under CETA.

=Title II: Synthetic Fuels Reserve Corporation Act= - Synthetic Fuels Reserve Corporation Act - Declares the purpose of this Act is to make the United States energy-independent as soon as practicable by expediting development of a synthetic fuel industry based upon power sources not subject to foreign control.

Establishes the Synthetic Fuels Reserve Corporation to produce, or assist in the production of, synthetic fuels equivalent to five million barrels of crude oil per day. Stipulates that the Corporation shall maintain its principal office in the District of Columbia and shall maintain an agent to accept service of process for the Corporation. Authorizes the Corporation to conduct such research and development activities necessary to carry out its purpose.

Restricts the sale of synthetic fuel produced by facilities owned by the Corporation or otherwise acquired by the Corporation to the U.S. Government or to persons or entities who shall make such fuel available for use in the United States. Requires such fuel to be sold at the prevailing market price (as determined by the Secretary of Energy) for nonsynthetic fuel to which it is equivalent. Requires the United States to pay the Corporation the difference between production costs and the prevailing market price, if production costs exceed the market price. Directs the United States, upon recommendation by the Corporation, to pay persons or entities producing synthetic fuel the difference in production costs which exceed the market price, subject to an agreement with the United States. Provides that such agreement shall require the synthetic fuel producer to: (1) sell such fuel at the prevailing market price; (2) sell such fuel only to the U.S. Government or to persons or entities which shall make such fuel available for use in the United States; and (3) furnish the Corporation with the opportunity to purchase such fuel before offering it for sale to others. Requires the United States to acquire synthetic fuel produced (or otherwise acquired) by the Corporation, or produced by persons or entities which receive financial assistance from the Corporation and which are citizens of the United States, if the Corporation, persons, or entities are unable to sell such fuel within three months after its offer for sale. Stipulates that such purchase shall follow the stated guidelines pertaining to market price and production cost differentials. Authorizes the Corporation to include in any contract for the purchase of synthetic fuel a provision granting the Corporation a right to refuse delivery of such fuel and instead to pay the seller the amount by which the fuel involved exceeds the market price (as determined by the Secretary of Energy) on the delivery date.

Requires the Corporation to have a five-member Board of Directors, appointed by the President, by and with the advice and consent of the Senate, of which no more than three members may be of the same political party. Prohibits members of the Board from receiving salary or compensation from sources other than the Corporation during their periods of service. Prohibits members of the Board (or supervisory employees) from having any financial interest in: (1) a corporation or other entity engaged in the generation or distribution of power to the public; (2) a corporation or other entity engaged in mineral exploration, development, or use; or (3) any other business or activity which may be affected by the Corporation. States that the Board members are to be considered employees of the executive branch for purposes of the provisions of the Ethics in Government Act of 1978 relating to executive personnel financial disclosure requirements.

Sets forth procedures and guidelines by which the Board may appoint officers and employees to carry out the functions of the Corporation.

Declares that the Corporation shall have succession in its corporate name. Authorizes the Corporation to adopt and use a corporate seal which shall be judicially noticed. Grants the Corporation exclusive authority in its own name to: (1) commence or defend, and supervise the litigation of, any civil actions involving the interests of the Corporation, and any appeal of such action; and (2) intervene, appear, and participate, or appear as amicus curiae, in any court of the United States or on any State court in civil actions involving the interests of the Corporation. Requires that any litigation before the Supreme Court be carried out by the Attorney General according to existing provisions of law.

Authorizes the Corporation to own and operate facilities required to enable it to produce synthetic fuel, and to enter into arrangements with other persons or entities for the operation of such facilities. Prohibits facilities of the Corporation from being leased to any person or entity owned or controlled, directly or indirectly, by any foreign government or instrumentality, of such government unless the President determines that such lease is in the national interest, and specifically authorizes such transaction.

Authorizes the Corporation to enter into and perform contracts and similar transactions in order to carry out the business of the Corporation, including joint ventures with any person or entity (including those located outside the United States,) under agreements made by the Corporation to finance synthetic fuel production operations and to receive a station portion of the synthetic fuel output.

Allows the Corporation to make loans or grants to any person or entity to assist in the establishment and operation of facilities to produce synthetic fuel under terms and conditions it deems appropriate.

Limits the total amount of obligations and loans and loan guarantees which may be outstanding at any one time to $200,000,000,000.

Authorizes the Corporation to purchase, lease, or otherwise hold real or personal property necessary to carry out the business of the Corporation. Declares that the Corporation shall have the exclusive use, possession, and control of any property acquired in its own name or in the name of the United States, and may dispose of such property as it deems appropriate.

Authorizes the Corporation to exercise the right of eminent domain in the name of the United States to acquire real property. Permits the President to transfer real or personal property of the United States to the Corporation, upon a determination that such transfer furthers the business of the Corporation.

Allows the Corporation to invest any funds available to it (including the proceeds of its obligations) in any securities approved for the investment of national bank funds. Directs the Corporation to deposit such funds only in Federal reserve banks or any bank which holds membership in the Federal Reserve System. Stipulates that the Corporation shall have no power to issue any share of stock or to declare or to pay dividends. States that no part of the income and assets of the Corporation shall inure to the benefit of any director, officer, or employee of the Corporation, except for reasonable compensation for services or reimbursement for expenses. Prohibits the Corporation from contributing or making available corporate funds, personnel, or equipment to any political party or association or to the campaign of any candidate for public or party office, or for use in advocating or opposing any ballot measure, initiative, or referendum.

Requires that the Corporation maintain complete and accurate books of accounts of its business. Directs the Corporation to publish a report (on September 30 of each year) containing a financial statement and complete description of the business of the Corporation during the preceding 12-month period. Requires that such report be submitted to the President and Congress together with the Board's recommendations relating to its duties and powers. Directs the Comptroller General to audit the transactions of the Corporation at least once each year.

Authorizes the Corporation, with the approval of the Secretary of the Treasury, to issue bonds, notes, debentures, and similar obligations, the proceeds of which are to be used in a manner in which the Board considers appropriate to carry out the purposes of this Act. States that such obligations shall: (1) be in such forms and denominations; (2) have such maturities (but not more than 30 years from the date of issuance); (3) bear such rates of interest; (4) be subject to such terms and conditions; and (5) be issued in such manner and sold at such prices, as may be prescribed by the Corporation, subject to the approval of the Secretary of the Treasury. Authorizes the Corporation to redeem such obligations before maturity in such manner as it considers suitable.

Provides that the payment of principal and interest on obligations issued by the Corporation are to be guaranteed by the United States. Directs the Secretary of the Treasury to pay upon demand, when due, the principal of or interest on such obligations from certain unappropriated funds, when the Corporation is unable to do so. Provides that to the extent of the amount paid for such obligations, the Secretary shall succeed to all the rights of the holders of such obligations. Exempts the proceeds realized by the Corporation from the issuance of such obligations and the expenditure of such proceeds from being subject to apportionment of appropriations under current law. Declares that such obligations are to be negotiable instruments unless otherwise specifically provided at the time of issuance. Makes such obligations lawful investments which may be accepted as security for all fiduciary, trust, and public funds, the investment or deposit of which shall be under the authority or control of any officer or agency of the United States. Provides that such officer or agency may at any time sell any of such obligations acquired under this provision.

Stipulates that the principal and interest on such obligations shall be exempt from taxation imposed by State and local taxing authorities, other than estate, inheritance, and gift taxes. Excludes interest on such bonds from gross income for purposes of Federal taxation. Sets forth procedures by which the Secretary of the Treasury may purchase obligations issued by the Corporation, and terms and conditions authorizing the Corporation to sell its bonds.

Requires that net proceeds derived by the Corporation from the sale of synthetic fuel or other revenue-producing activities (other than proceeds from aforementioned obligations) be paid into the Treasury of the United States at the end of each fiscal year, to the extent that such proceeds exceed $5,000,000,000, unless the Secretary of Energy determines that all or part of such proceeds are needed for use by the Corporation for the subsequent fiscal year.

Establishes within the Corporation a division to assist the Board, and other persons or entities engaged in the production of synthetic fuel, to obtain all permits, licenses, and other forms of approval required by Federal, State, or local entities for the construction and operation of facilities for the production of synthetic fuel.

Declares that, notwithstanding the provisions of any other Federal, State, or local air and water environmental standards, the best available technology shall be the maximum technological standard required of the Corporation, or any producer of synthetic fuel assisted under this Act.

Reserves the right of the Government of the United States to take possession of any property owned or controlled by the Corporation during the time of war or national emergency declared by Congress.

Amends the Government Corporation Control Act by designating the Synthetic Fuel Reserve Corporation as a wholly Government corporation, not subject to Federal, State, or local taxation.

Amends the Internal Revenue Code to allow a tax credit for the production of synthetic fuel from nonconventional sources to be applied on a project-by-project basis, applicable to taxable years beginning after December 31, 1979. Sets forth terms and conditions for the applicability of the tax credit, including such production attributable to the taxpayer. Stipulates that such tax credit shall apply only to synthetic fuel produced from property located in, or offshore of, the United States, including U.S. continental shelf areas and territories and possessions. Provides for amortization by owners of synthetic fuel production facilities in the same manner as certain pollution control facilities under the Internal Revenue Code of 1954. Authorizes the Secretary of the Treasury to prescribe such regulations as may be necessary to carry out such tax credit. Directs the Corporation to study and recommend to the President and the Congress, within six months of the effective date of this Act, tax incentives for private entities to encourage synthetic fuel production.

Authorizes the appropriation of $5,000,000,000 for each fiscal year beginning after September 30, 1979 for the purposes of this Act. Limits the authority to enter into agreements or make payments under this Act for any fiscal year to the extent or amounts furnished in appropriation Acts. States that new borrowing authority granted under such Act shall be limited to the extent, or in such amounts, granted in appropriation Acts. Makes this Act effective on the date of enactment.

=Title III: Replacement Motor Fuels Act= - Replacement Motor Fuels Act of 1979 - Directs the Secretary of Energy to establish a program to promote the development and use of replacement fuels in the United States, specifically to promote the replacement of gasoline and diesel fuel to be used as motor fuel.

Requires the Secretary of Energy, in consultation with the Secretaries of Transportation, Agriculture, and Commerce, and heads of other appropriate agencies, to determine: (1) the best raw materials, other than petroleum or natural gas, for replacement fuels production; (2) the characteristics of replacement motor fuels distributions systems and the production processes using feedstock other than petroleum and natural gas, necessary for rapid replacement motor fuel industry development, including a timetable for such development; (3) the feasibility of including liquids extracted from oil shale and coal in the placement program; and (4) the feasibility of producing enough replacement fuels to replace 20 percent or more of the projected consumption of gasoline and diesel fuel used as motor fuel in the United States, by the year 1992.

Directs the Secretary to establish production goals for the optimal production of replacement fuel in the United States in each of the calendar years 1981 through 1987, and declares that such goal shall not be less than ten percent for calendar year 1987 and each year thereafter. Requires the Secretary to complete his reviews and determinations not later than 180 days after enactment of this Act and submit a report thereon to each House of Congress.

Requires the Secretary of Energy to prescribe by rule, not later than July 1, 1980, the minimum percentage replacement fuel, by volume, required to be contained in the total quantity of gasoline and diesel fuel sold each year in commerce in the United States in calendar years 1981 through 1986 by refiners as motor fuel. Requires each refiner to report annually to the Secretary the percentage replacement fuel by volume contained on the average in the total quantity of gasoline and diesel fuel for use as motor fuel sold by such refiner during the preceding calendar year. Allows refiners to satisfy replacement fuel requirements through their own resources or through contract or arrangement with other refiners. Authorizes the Secretary, upon application by any person, to reduce the minimum percentage requirement applicable to such person to the extent that such adjustment is consistent with the purposes of this Act.

Establishes a civil penalty of not more than $1 per gallon for each gallon of fuel sold that is not in compliance with the minimum percentage requirements of replacement fuel, to be assessed by the Secretary of Energy. Requires the Secretary to provide notice to alleged violators of proposed penalties and to inform violators of the opportunity to elect one of two enforcement procedures within 30 days of such notice.

Allows, under the first enforcement procedure, an agency hearing before an administrative law judge, after which the Secretary shall assess the penalty to include the judge's findings and basis for such assessment. Permits the individual against whom a penalty is assessed to institute an action in the U.S. court of appeals with appropriate jurisdiction for judicial review. Grants the court jurisdiction to enter a judgment affirming, modifying, or setting aside all or part of the Secretary's order, or to remand the proceeding to the Secretary for further action.

Directs the Secretary, under the second enforcement procedure, to assess the penalty promptly. Requires the Secretary, upon not receiving payment within 60 days, to institute an action in the appropriate district court of the United States for an order affirming such assessment. Grants the court the authority to review de novo the law and facts involved and to enter a judgment enforcing, modifying, and enforcing as so modified, or setting aside, in whole or in part, such assessment. Stipulates that any election to apply such procedure may be revoked only with the Secretary's consent.

Allows the Secretary, if the assessment is not paid under either enforcement procedure, to recover the amounts owned in any appropriate district court of the United States. Provides that in such action, the validity and appropriateness of such final assessment, order, or the final judgment shall not be subject to review.

Authorizes the appropriation of not more than $1,000,000 to carry out the development plan and production goals program of this Act for fiscal year 1980.

=Title IV: Synthetic Fuel Exchanges= - Amends the Powerplant and Industrial Fuel Use Act of 1978 to provide that any person who owns, or is entitled to receive, synthetic fuel may transfer ownership of such fuel to another person in exchange for the right to use an amount of petroleum or natural gas of an equivalent btu content. Prohibits the synthetic fuel so transferred from being treated as alternate fuel, but allows the petroleum or natural gas involved in the exchange to be treated as alternate fuel upon submission of appropriate documentation and certification to the Secretary of Energy. Requires persons utilizing such exchange to report annually to the Secretary describing the source, amount, quality, and point of delivery of the synthetic fuel and the petroleum or natural gas involved.