A bill to amend the Powerplant and Fuel Use Act of 1978 to remove certain fuel use prohibitions on existing powerplants and major fuel-burning installations.

Amends the Powerplant and Industrial Fuel Use Act of 1978 to repeal certain prohibitions and limitations on the use of natural gas as a primary energy source in electric powerplants.

Repeals the authority of the Secretary of Energy to prohibit the use of petroleum or natural gas or both: (1) as a primary energy source in electric powerplants where coal or alternate fuel capabilities exist; and (2) in excess of a minimal amount, in an electric powerplant in which it is feasible to use a mixture of petroleum or natural gas or an alternate fuel as a primary energy source.

Authorizes the Secretary to prohibit the use of natural gas or petroleum in any category of existing major fuel-burning installation, which can consume 300 million Btu's or more fuel per hour, where coal or alternate fuel capabilities exist.

Repeals provisions which temporarily permit the use of petroleum or natural gas for: (1) peakload plants; and (2) power plants for which an exemption is needed to prevent impairment of service.

Eliminates permanent exemptions for: (1) peakload plants; (2) petroleum use in intermediate load plants; (3) certain plants with capacities of less than 250,000,000 Btu's per hour for the use of natural gas; and (4) certain plants for the use of liquified natural gas.