transition team in 1980, I became interested in the use of synthetic fuels as a part of our long range solution to the inevitable energy crises. Following transition, I served as a special White House Consultant to the Corporation, along with Russ Miller, now on the staff of the corporation. It was during this period of time that I became convinced that the development of a synthetic fuels industry was an important strategic energy resource that this country should develop on a commercial scale. Following this period of volunteer service, I helped organize a joint venture group consisting of four firms to actively pursue work in the synthetic fuels industry. We called our group Syntech. Although we were not successful in this effort, it was an excellent opportunity to learn more about the early challenges and difficulties that this new industry was to encounter. As soon as I learned that I was being considered for appointment to the board of directors of the USSFC, I informed the other members of the Syntech team that our company must no longer participate as it might lead to potential future conflict of interest. At that time, the other members of the group discontined their mutual efforts, as far as I am aware. As the only technical engineer on the board, I have attempted to keep up to date on the various technologies in an effort to make reasonable and informed judgements when a project specific is being judged on its technical merits. It has been a pleasure to have Leonard Axelrod heading up this staff function. He is a proven asset with demonstrated ability and experience. He has a clear understanding of his role, and, in my opinion, carries out his duties in a most satisfactory manner. When I joined the board it had been in operation for over a year, during which period many policies and procedures had been determined. With a brief period to catch up with the existing status of the corporation and the board of directors, I made the transition to a good level of personal comfort with the help of excellent briefings and cooperation from the staff. There have obviously been some mistakes made as the corporation organization has evolved. We can all look back today employing our perfect 20/20 hindsight. However, considering the number of tasks, the complexity of technology development, and the short time frame, I am pleased with the corporation progress to date since joining the Board last August. I view the future as both promising and exciting. Each individual board member seems to have a high priority on effecting good communications and we have worked hard to continue to improve our communications. While even the best intentioned group of individuals will have disagreements from time to time, the key is to disagree agreeably. This has been, and will continue to be my personal philosophy. On Wednesday of this week our chairman, Mr. Noble, discussed many of the challenges that have been encountered. We have all struggled with these matters and worked together to find acceptable solutions. I do not take this mission lightly. Collectively and individually, we have the duty to make every possible effort to meet the challenges set forth in the Energy Securities Act, and at the same time, keep the public trust as we allocate tax dollars prudently. In this regard I will continue my practice of exercising independent judgment on the decisions to be made; calling them as I see them. While I will listen to all sides and consider all options, in the final analysis I will make up my own mind, believing this to be the charge and responsibility of a director. Thank you for allowing me to appear before your Senate Subcommittee. Senator COHEN. Thank you very much. The subcommittee will stand adjourned. [Whereupon, at 12:08 p.m., the subcommittee was adjourned, subject to reconvene at the call of the Chair.] Energy Security Act Excerpts Part B-United States Synthetic Fuels Corporation SUBTITLE A-GENERAL PROVISIONS SHORT TITLE SEC. 111. This part may be cited as the "United States Synthetic 42 USC 8701 Fuels Corporation Act of 1980" GENERAL DEFINITIONS SEC. 112. For purposes of this part: (1) The term "Board of Directors" means the Board of Directors of the Corporation, including the Chairman and the six other Directors. (2) The term "Chairman" means the Chairman of the Board of Directors of the Corporation. (3) The term "concern" means any (A) person; (B) State or political subdivision or governmental entity thereof, or an Indian tribe or tribal organization; (C) multi-State entity which possesses legal powers necessary to carry out activities under this part; (D) foreign government or agency thereof when participating in joint ventures with any entity described in subparagraph (A) or (B); or (E) combination of the aforementioned, which is engaged, or proposes to engage, in a synthetic fuel project pursuant to this part. note. 42 USC 8702. 94 STAT. 634 Post, p. 663. Post, p. 654. Post, p. 658. Post, p. 660. Post, p. 661. Post, p. 661. PUBLIC LAW 96-294-JUNE 30, 1980 (4) The term "Corporation" means the United States Synthetic Fuels Corporation. (5) The term "Corporation construction project" means a synthetic fuel project undertaken in accordance with the provisions of subtitle E. (6) The term "Director" means a member of the Board of Directors, including the Chairman. (7)(A) The term "financial assistance" means any of the following forms of financial assistance, or combinations thereof, as provided in subtitle D (i) loans; (ii) loan guarantees; (iii) price guarantees; (iv) purchase agreements; (v) joint-ventures; and (vi) acquisition and lease back of a synthetic fuel project pursuant to section 137(c); (B) Such term shall not include any form of grant, except costsharing agreements pursuant to section 131(u). (8) The term "Indian tribe" means any Indian tribe, band, nation, or other organized group or community, including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians. (9) The term "joint venture" means a synthetic fuel project module undertaken in accordance with the provisions of section 136. (10) The term "loan" means a loan, or commitment to loan, made under section 132; (11) The term "loan guarantee" means a guarantee of, or commitment to guarantee, indebtedness, which is made under section 133. (12) The term "person" means any individual, company, cooperative, partnership, corporation, association, consortium, unincorporated organization, trust, estate, or any entity organized for a common business purpose. (13) The term "price guarantee" means a guarantee of, or commitment to guarantee, the price received or to be received by a concern from the sale of synthetic fuel. Such term includes only a guarantee, or commitment to guarantee, which is made under section 134. (14) The term "purchase agreement" means any contract to purchase synthetic fuel, any guarantee thereof, or a commitment thereof, which is made under section 135. (15) The term "qualified concern" means a concern which demonstrates to the satisfaction of the Board of Directors evidence of its capability directly or by contract to undertake and complete the design, construction, and operation of a proposed synthetic fuel project. (16) The term "State" means any of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. (17)(A) The term "synthetic fuel" means any solid, liquid, or gas, or combination thereof, which can be used as a substitute for 24-125 0-83--11 PUBLIC LAW 96-294-JUNE 30, 1980 petroleum or natural gas (or any derivatives thereof, including chemical feedstocks) and which is produced by chemical or physical transformation (other than washing, coking, or desulfurizing) of domestic sources of (i) coal, including lignite and peat; (ii) shale; (iii) tar sands, including those heavy oil resources where- (iv) water, as a source of hydrogen only through electrolysis. (B) Such term includes mixtures of coal and combustible liquids, including petroleum. (C) Such term does not include solids, liquids, or gases, or combinations thereof, derived from biomass, which includes timber, animal and timber waste, municipal and industrial waste, sewage, sludge, oceanic and terrestrial plants, and other organic matter. (18)(A) The term "synthetic fuel project" means any facility using an integrated process or processes at a specific geographic location in the United States for the purpose of commercial production of synthetic fuel. The project may include only (i) the facility, including the equipment, plant, machinery, supplies, and other materials associated with the facility, which converts the domestic resource to synthetic fuel; (ii) the land and mineral rights required directly for use in connection with the facilities for the production of synthetic fuels; (iii) any facility or equipment to be used in the extraction of a mineral for use directly and exclusively in such conversion; (I) which (aa) is co-located with the conversion facility or is located in the immediate vicinity of the conversion facility; or (bb) if not co-located or located in the immediate vicinity, is incidental to the project (except in the event of a coal mine where no other reasonable source of coal is available to the project); and (II) which is necessary to the project; and (iv) any transportation facility, electric powerplant, electric transmission line or other facility (I) which is for the exclusive use of the project; (III) which is necessary to the project, except that (B)(i) Such term may also include a project which will result in the replacement of a significant amount of oil and is 94 STAT. 635 |