--- kind: "section" citation: "15 U.S.C. § 3806" title: "15" title_heading: "Commerce and Trade" number: "3806" heading: "Demonstrations" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/15/3806" units: - "Chapter 64 — Methane Transportation Research, Development, and Demonstration" --- # §3806. Demonstrations - (a) **Development of data assessing current state-of-the-art—** Not later than January 1, 1982, the [Secretary](/usc/15/3802.md?p=b) shall develop data assessing the current [state](/usc/15/15g.md?p=2)-of-the-art with respect to [vehicles](/usc/15/3802.md?p=e) fueled by [methane](/usc/15/3802.md?p=a) to serve as baseline data to be utilized in evaluating improvements in [methane](/usc/15/3802.md?p=a)-fueled [vehicle](/usc/15/3802.md?p=e) technologies. - (b) **Guidelines; promulgation, criteria, scope, etc.** Not later than April 1, 1982, the [Secretary](/usc/15/3802.md?p=b) shall have promulgated necessary and appropriate guidelines for demonstrations and issued an initial request for proposals for technical and financial assistance to support public and [private entities](/usc/15/3802.md?p=d) in developing and implementing demonstration projects to gather data on the operation of [methane](/usc/15/3802.md?p=a)-fueled [vehicles](/usc/15/3802.md?p=e) and [methane](/usc/15/3802.md?p=a) transmission, storage, and dispensing facilities, under differing climatic, atmospheric, and operating conditions and on design and technical modifications of those [vehicles](/usc/15/3802.md?p=e) and facilities: - (1) In the case of [public entities](/usc/15/3802.md?p=c), the [Secretary](/usc/15/3802.md?p=b) is authorized to provide— - (A) technical assistance reasonably associated with the modification or acquisition of [vehicles](/usc/15/3802.md?p=e) to be fueled by [methane](/usc/15/3802.md?p=a) or with dual fuel capacity, the installation of [methane transmission, storage and dispensing facilities](/usc/15/3802.md?p=f), and compliance with data acquisition and reporting requirements under this chapter; and - (B) grants to cover up to 50 per centum of reasonable and necessary costs associated with the installation of [methane transmission, storage and dispensing facilities](/usc/15/3802.md?p=f): Provided, That the [Secretary](/usc/15/3802.md?p=b) shall be authorized to direct and require recipients of assistance under this section to enter into cooperative [agreements](/usc/15/7a.md?p=2) for the planning and use of such facilities with other recipients of assistance under this section, under a cost-sharing [agreement](/usc/15/7a.md?p=2) where appropriate and economical. - (2) - (A) In the case of [private entities](/usc/15/3802.md?p=d), the [Secretary](/usc/15/3802.md?p=b) is authorized to provide— - (i) technical assistance reasonably associated with the modification or acquisition of [vehicles](/usc/15/3802.md?p=e) to be fueled by [methane](/usc/15/3802.md?p=a) or with dual fuel capacity, the installation of [methane transmission, storage and dispensing facilities](/usc/15/3802.md?p=f), and compliance with data acquisition and reporting requirements under this chapter; and - (ii) loans to cover up to 50 per centum of reasonable and necessary costs associated with the installation of [methane transmission, storage and dispensing facilities](/usc/15/3802.md?p=f): Provided, That the [Secretary](/usc/15/3802.md?p=b) shall be authorized to direct and require recipients of assistance under this section to enter into cooperative [agreements](/usc/15/7a.md?p=2) for the planning and use of such facilities with other recipients of assistance under this section, under a cost-sharing [agreement](/usc/15/7a.md?p=2) where appropriate and economical. - (B) Loans issued under this section shall bear interest at such rate as the [Secretary](/usc/15/3802.md?p=b) may determine, giving consideration to the needs and capacities of the recipient and the prevailing rates of interest (public and private), except that such rate shall not be less than a rate determined by the [Secretary](/usc/15/3802.md?p=b) of the Treasury, taking into consideration the current average yield on outstanding marketable obligations of the United States with remaining periods of maturity comparable to the average maturities of such loans. No loan shall be made unless the [Secretary](/usc/15/3802.md?p=b) shall have determined that there is reasonable prospect of repayment. - (C) The terms and conditions of loans issued under this section shall take into account the scope of the particular demonstration and any particular conditions which might reasonably be expected to result in additional costs to the recipient, and shall reflect the relative costs of gasoline and diesel fuel and [methane](/usc/15/3802.md?p=a) and the projected savings in fuel costs to the recipient as a result of participating in the demonstration. In no instance shall a loan issued under this section be for a period in excess of five years. - (3) The [Secretary](/usc/15/3802.md?p=b) shall provide for appropriate assistance to defray costs associated with complying with data acquisition and reporting requirements under this chapter. - (4) In the case of an organization comprised of both public and [private entities](/usc/15/3802.md?p=d), a package of technical and financial assistance shall be designed to the maximum extent feasible, in such a manner as to assist its public components as provided for in [paragraph (1)](#b-1) and to assist its private components as provided for in [paragraph (2)](#b-2) of this section. - (c) **Fiscal year limitations—** Not fewer than fifty demonstrations shall be assisted under this section with not fewer than ten being initiated in the fiscal year ending September 30, 1982, and not fewer than twenty being initiated in each of the fiscal years ending September 30, 1983, and September 30, 1984. In the case of demonstrations initiated under this chapter after the first fiscal year in which demonstrations are funded, the [Secretary](/usc/15/3802.md?p=b) shall ascertain that plans for such demonstrations take into consideration information and findings included in reports filed on other demonstrations assisted under this chapter. - (d) **Duration; recordkeeping requirements—** Each demonstration shall have a duration of at least three years during which time records including, but not limited to, fuel efficiency indicators, emissions data, repair statistics, and detailed reports of any accidents, shall be maintained and reports made to the [Secretary](/usc/15/3802.md?p=b) in accordance with guidelines promulgated by the [Secretary](/usc/15/3802.md?p=b) prior to issuance of the first loan or grant under this section and amended no more often than twice annually. - (e) **Selection of proposed demonstrations; discretionary and mandatory criteria—** In selecting proposed demonstrations to be supported under this section, the [Secretary](/usc/15/3802.md?p=b) shall, to the maximum extent practicable, assure representation of diverse operating conditions and [vehicle](/usc/15/3802.md?p=e) types including, but not limited to— - (1) altitude and topography, - (2) climatic conditions, - (3) air quality conditions, - (4) industrial, commercial, and agricultural uses, - (5) varying vehicular structures, and - (6) average trip lengths: ## Source credit (Pub. L. 96–512, § 7, Dec. 12, 1980, 94 Stat. 2830.)