Executive Order 12242—Synthetic Fuels

By the authority vested in me as President by Sections 305 and 703(a) of the Defense Production Act of 1950, as amended (50 U.S.C. App. 2095, and 2153(a) ), and Section 301 of Title 3 of the United States Code, and in order to achieve production of synthetic fuel to meet national defense needs and to provide for an orderly transition of synthetic fuel responsibilities to the United States Synthetic Fuels Corporation, it is hereby ordered as follows: 1-101. The functions vested in the President by Sections 305(f) (1) and 305 (f) (2) of the Defense Production Act of 1950, as amended (50 U.S.C. App. 2095 (f) (1) and (2)), are delegated to the Secretary of Defense. 1-102. The Secretary of Defense shall, after consulting with the Secretary of Energy, determine the quantity and quality of synthetic fuel which is needed to meet national defense needs from time to time. This determination shall be made in accord with Section 305(f) (1) of the Defense Production Act of 1950, as amended, and shall promptly be furnished to the Secretary of Energy. 1-103. In accord with Section 305(f) (1) of the Defense Production Act of 1950, as amended, the Secretary of Defense shall ensure that his determination of the national defense needs for synthetic fuel does not include any synthetic fuel which the Secretary anticipates will be resold by the Government. 1-104. The functions vested in the President by subsections (b) (1) (A) (i) and (ii), (c) (1)(B), (c) (3), (d)(2), (d) (3), (d)(5), (d) (6), (e), and (g) (2) (c) of Section 305 of the Defense Production Act of 1950, as amended (50 U.S.C. App. 2095), are delegated to the Secretary of Energy. 1-105. The Secretary of Energy, to the extent practicable, shall apply laws regarding the procurement of goods and services by the Government to the terms and conditions contained in purchase contracts awarded under subsection (b) (1) (A) (i) of Section 305 of the Defense Production Act of 1950, as amended. The terms and conditions of these contracts shall be subject to the concurrence of the Secretary of Defense. 1-106. The Secretary of Energy shall, after consulting with the Secretary of Defense, exercise the functions delegated to him under Section 305 of the Defense Production Act of 1950, as amended, in order to meet the national defense needs for synthetic fuel as determined by the Secretary of Defense. 1-107. The Secretary of Energy shall exercise the functions delegated to him under Section 305 of the Defense Production Act of 1950, as amended, in a manner consistent with an orderly transition to the separate authorities established pursuant to the United States Synthetic Fuels Corporation Act of 1980, as provided by Section 305(a)(1)(B) (iii) of the Defense Production Act of 1950, as amended. 1-108. The Secretary of Energy, after consulting with the Secretary of Defense, shall prepare for the President's transmittal to the Congress the report required by Section 106 of the Energy Security Act (Public Law 96-294). The proposed report shall be submitted to the President for his consideration no later than thirty days prior to the date on which it is to be transmitted to the Congress. 1-109. No new awards for purchases or commitments for financial assistance shall be made under the provisions of this Order after the date on which the President determines that the United States Synthetic Fuels Corporation is established and fully operational. That determination is to be made in accord with Section 305 (k) of the Defense Production Act of 1950, as amended (50 U.S.C. App. 2095 (k)), and in accord with the appropriations to the Departments of Energy and the Treasury pursuant to the Supplemental Appropriations and Rescission Act, 1980 (P.L. 96-304; 94 Stat. 857, 880-882). 1-110. No award for a purchase or commitment for financial assistance shall be made which would preclude projects or actions initiated by the Secretary of Energy under the provisions of this Order from being transferrable to the United States Synthetic Fuels Corporation. 1-111. Prior to issuing any loan guarantee under the provisions of this Order, the Secretary of Energy shall obtain the concurrence of the Secretary of the Treasury with respect to the timing, interest rate, and substantial terms and conditions of such loan guarantee. In establishing an interest rate, the current average yield on outstanding marketable obligations of the United States with comparable remaining periods of maturity shall be considered. To the extent practicable, the timing, interest rate, and substantial terms and conditions of such guarantees shall have the minimum possible impact on the capital markets of the United States, taking into account other Federal direct and indirect securities activities. JIMMY CARTER The White House, September 30, 1980. [Filed with the Office of the Federal Register, 3:01 p.m., September 30, 1980]