Natural Gas Utilization Act of 1981

Natural Gas Utilization Act of 1981 - Title I: Findings and Purposes - Revises the findings and purposes of the Powerplant and Industrial Fuel Use Act of 1978 to delete references to natural gas. Sets forth the purposes of this Act and definitions used in this Act.

Title II: Petroleum Displacement Act of 1981 - Petroleum Displacement Act of 1981 - Amends the Powerplant and Industrial Fuel Use Act of 1978 to repeal certain prohibitions on the usage of natural gas as a primary energy source in existing electric powerplants and major fuel-burning installations.

Repeals the systems compliance option provisions of the Act which provide that existing powerplants owned or operated by a utility will be considered in compliance with any prohibition relating to natural gas usage if the utility has in effect an approved system compliance plan.

Makes conforming amendments.

Title III: Gas Transportation Program - Directs the Federal Energy Regulatory Commission to establish procedures for expedited consideration of transportation certificates for transporting natural gas from seller to buyer. Permits either a buyer or a transporting pipeline to apply for a transportation certificate.

Permits the Commission to deny a certificate application only upon determining that: (1) approval would interfere with natural gas need rules; or (2) the transporting pipeline has inadequate capacity.

Title IV: Administration and Reporting Requirements - Directs the Commission to report to Congress concerning the effectiveness of the procedurer established under Title III.

Provides for the expiration of this Act in 20 years.