Summary: H.R.3930 — 96th Congress (1979-1980)All Information (Except Text)

Bill summaries are authored by CRS.

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Passed House amended (06/26/1979)

(Measure passed House, amended, roll call #284 (368-25))

Defense Production Act Amendments of 1979 - Amends the Defense Production Act of 1950 to include within the policy objectives of such Act Government preparedness to contend with foreign actions which could reduce or terminate the availability of material, particularly petroleum, which is crucial to national defense. States that greater independence in domestic energy supplies is necessary to national defense preparedness.

Transfers authority to the Departments of Commerce, Defense, and Energy, and the Tennessee Valley Authority to guarantee loans for the purpose of expediting deliveries or services with respect to national defense contracts.

Increases the maximum amount of a loan which any Federal agency may guarantee under the Defense Production Act of 1950, without the approval of Congress, from $20,000,000 to $38,000,000. Requires notification to specified Congressional committees of any proposed obligation above such limit. Authorizes the agency involved to guarantee such a loan if neither House of Congress disapproves of the loan within a specified time period.

Includes the production of energy as one of the purposes for which the direct loan authority of the Defense Production Act of 1950 may be used. Increases the amount of such loan authority to $48,000,000.

Expands Presidential authority to provide for the national defense by authorizing the President to make provision for the production of strategic minerals, metal and material. Extends the purchasing authority of this Act until September 30, 2015.

Eliminates the requirement that either the Secretary of Agriculture or the Secretary of the Interior certify that a shortage of a strategic or critical material exists before the President may use his authority to provide for the development of substitutes for such material.

Directs the President to achieve a national production goal of at least 500,000 barrels per day crude oil equivalent of synthetic fuels and synthetic chemical feedstocks within five years, and 2,000,000 barrels per day within ten years of the enactment of this Act. Directs the President to require suppliers to provide synthetic fuels and synthetic chemical feedstocks when he determines that such action is necessary for the national defense.

Directs the President to enter into contracts to purchase synthetic fuels and synthetic chemical feedstocks, and to encourage the development and production of such fuels and feedstocks for national defense preparedness.

Authorizes contracts for purchases of fuel or feedstocks until the national production goals in effect are reached, or until September 30, 1995, whichever occurs earlier. Prohibits the purchase of supplies which exceed established ceiling or market prices, unless the President determines that no other supplies are available and that such supplies are necessary for national defense preparedness. Requires the letting of contracts by competitive bidding, unless the President determines that no bids are acceptable, or no bids are received.

Requires that contracts for the purchase of fuels or feedstocks permit the Government to refuse delivery, but require the Government to pay the difference between purchase price and market price on day of delivery, if the Government accepts delivery.

Places limits on the amount of barrels per day of synthetic fuels and chemical feedstock which the Government may purchase from any single contractor. Requires that fuels and feedstock which are purchased under contract be produced in facilities located in the United States.

Provides that synthetic fuels or synthetic chemical feedstocks which are purchased by the Government and not resold shall be used by Federal agencies, and paid for at market price.

Authorizes the President to install additional equipment for the production of synthetic fuels in Government-owned or private plants when he determines that it is in the national interest to do so.

Directs Federal officers and agencies which have jurisdiction over the issuance of licenses for the construction or operation of facilities for the production of synthetic fuels or feedstocks to expedite the issuance of licenses to facilities with which the President has contracted under the authority of this Act.

Authorizes the President to organize Government corporations for the production of synthetic fuels and synthetic chemical feedstocks, provided that Congress has been notified of such proposed organization and neither House of Congress has disapproved within a specified time period.

Authorizes the transfer of excess synthetic fuels and chemical feedstocks to the national stockpile or to the Strategic Petroleum Reserve.

Authorizes appropriations of $3,000,000,000 for synthetic fuel and feedstock contracts as authorized pursuant to this Act.

Extends specified provisions of the Defense Production Act of 1950 through fiscal year 1980.

Requires the President to report to Congress on actions taken pursuant to this Act one year after its enactment, and annually thereafter.