---
kind: "section"
citation: "42 U.S.C. § 8352"
title: "42"
title_heading: "The Public Health and Welfare"
number: "8352"
heading: "Permanent exemptions"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/8352"
units:
  - "Chapter 92 — Powerplant and Industrial Fuel Use"
  - "Subchapter III — Existing Facilities"
  - "Part B — Exemptions"
---

# §8352. Permanent exemptions

- (a) **Permanent exemption due to lack of alternate fuel supply, site limitations, or environmental requirements—**
  - (1) After consideration of a petition (and comments thereon) for an exemption from one or more of the prohibitions of part A for a [powerplant](/usc/42/8302.md?p=a-7-A), the [Secretary](/usc/42/8302.md?p=a-1) shall, by order, grant a permanent exemption under this subsection for the use of [natural gas](/usc/42/8302.md?p=a-3-A) or [petroleum](/usc/42/8302.md?p=a-4), if he finds that the petitioner has demonstrated that despite diligent good faith efforts—
    - (A) it is likely that an adequate and reliable supply of [coal](/usc/42/8302.md?p=a-5) or other [alternate fuels](/usc/42/8302.md?p=a-6) of the quality necessary to conform with design and operational requirements for use as a [primary energy source](/usc/42/8302.md?p=a-15) will not be available to such [powerplant](/usc/42/8302.md?p=a-7-A) at a cost (taking into account associated facilities for the transportation and use of such fuel) which, based upon the best practicable estimates, does not substantially exceed the cost, as determined by rule by the [Secretary](/usc/42/8302.md?p=a-1), of using imported [petroleum](/usc/42/8302.md?p=a-4) as a [primary energy source](/usc/42/8302.md?p=a-15) during the remaining useful life of the [powerplant](/usc/42/8302.md?p=a-7-A);
    - (B) one or more [site limitations](/usc/42/8302.md?p=a-16) exist which would not permit the operation of such a [powerplant](/usc/42/8302.md?p=a-7-A) using [coal](/usc/42/8302.md?p=a-5) or any other [alternate fuel](/usc/42/8302.md?p=a-6) as a [primary energy source](/usc/42/8302.md?p=a-15); or
    - (C) the prohibitions of part A could not be satisfied without violating [applicable environmental requirements](/usc/42/8302.md?p=a-17).
  - (2) Notwithstanding the preceding provisions of this subsection, a [powerplant](/usc/42/8302.md?p=a-7-A) which has been granted an exemption under [subsection (g)](#g) may not be granted an exemption under this subsection.
- (b) **Permanent exemption due to certain State or local requirements—** After consideration of a petition (and comments thereon) for an exemption from one or more of the prohibitions of part A for a [powerplant](/usc/42/8302.md?p=a-7-A), the [Secretary](/usc/42/8302.md?p=a-1) may, by order, grant a permanent exemption under this subsection, if he finds that the petitioner has demonstrated that—
  - (1) with respect to the site of the [powerplant](/usc/42/8302.md?p=a-7-A), the operation of such a facility using [coal](/usc/42/8302.md?p=a-5) or any other [alternate fuel](/usc/42/8302.md?p=a-6) is infeasible because of a [State](/usc/42/2021b.md?p=14) or local requirement;
  - (2) if such [State](/usc/42/2021b.md?p=14) or local requirement is under a building code or nuisance or zoning law, no other exemption under this part could be granted for such facility; and
  - (3) the granting of the exemption would be in the public interest and would be consistent with the purposes of this chapter.
- (c) **Permanent exemption for cogeneration—** After consideration of a petition (and comments thereon) for an exemption from one or more of the prohibitions of part A for a [cogeneration facility](/usc/42/8302.md?p=a-19), the [Secretary](/usc/42/8302.md?p=a-1) may, by order, grant a permanent exemption under this subsection, if he—
  - (1) finds that the petitioner has demonstrated that economic and other benefits of cogeneration are unobtainable unless [petroleum](/usc/42/8302.md?p=a-4) or [natural gas](/usc/42/8302.md?p=a-3-A), or both, are used in such facility, and
  - (2) includes in the final order a statement of the basis for such finding.
- (d) **Permanent exemption for certain fuel mixtures containing natural gas or petroleum—**
  - (1) After consideration of a petition (and comments thereon) for an exemption from one or more of the prohibitions of part A for a [powerplant](/usc/42/8302.md?p=a-7-A), the [Secretary](/usc/42/8302.md?p=a-1) shall, by order, grant a permanent exemption under this subsection, if he finds that the petitioner has demonstrated that—
    - (A) the [powerplant](/usc/42/8302.md?p=a-7-A) uses, or proposes to use, a [mixture](/usc/42/8302.md?p=a-28) of [petroleum](/usc/42/8302.md?p=a-4) or [natural gas](/usc/42/8302.md?p=a-3-A) and [coal](/usc/42/8302.md?p=a-5) or another [alternate fuel](/usc/42/8302.md?p=a-6) as a [primary energy source](/usc/42/8302.md?p=a-15); and
    - (B) the amount of the [petroleum](/usc/42/8302.md?p=a-4) or [natural gas](/usc/42/8302.md?p=a-3-A) used in such [mixture](/usc/42/8302.md?p=a-28) will not exceed the minimum percentage of the total [Btu](/usc/42/8302.md?p=a-26) heat input of the [primary energy sources](/usc/42/8302.md?p=a-15) of such [powerplant](/usc/42/8302.md?p=a-7-A) needed to maintain reliability of operation of the unit consistent with maintaining a reasonable level of fuel efficiency, as determined in accordance with rules prescribed by the [Secretary](/usc/42/8302.md?p=a-1).
  - (2) Repealed. Pub. L. 100–42, § 1(c)(12)(A), May 21, 1987, 101 Stat. 313.
  - (3) The [Secretary](/usc/42/8302.md?p=a-1) may authorize a higher percentage than that referred to in [paragraph (1)(B)](#d-1-B) if he finds that the higher percentage of [natural gas](/usc/42/8302.md?p=a-3-A) allowed would be mixed with synthetic fuels derived from municipal wastes or agricultural wastes and would encourage the use of alternate or new technologies which use renewable sources of energy.
- (e) **Permanent exemption for emergency purposes—** After consideration of a petition (and comments thereon) for an exemption from one or more of the prohibitions of part A for a [powerplant](/usc/42/8302.md?p=a-7-A), the [Secretary](/usc/42/8302.md?p=a-1) shall, by order, grant a permanent exemption under this subsection, if he finds that the petitioner has demonstrated that such [powerplant](/usc/42/8302.md?p=a-7-A) will be maintained and operated only for emergency purposes (as defined by rule by the [Secretary](/usc/42/8302.md?p=a-1)).
- (f) **Permanent exemption for peakload powerplants—** After consideration of a petition (and comments thereon) for an exemption from one or more of the prohibitions of part A for a [powerplant](/usc/42/8302.md?p=a-7-A), the [Secretary](/usc/42/8302.md?p=a-1) shall, by order, grant a permanent exemption under this subsection, if he finds that—
  - (1) the [powerplant](/usc/42/8302.md?p=a-7-A) is operated solely as a [peakload powerplant](/usc/42/8302.md?p=a-18-A);
  - (2) a denial of such petition is likely to result in an impairment of reliability of service; and
  - (3)
    - (A) modification of the [powerplant](/usc/42/8302.md?p=a-7-A) to permit compliance with such prohibitions is technically infeasible; or
    - (B) such modification would result in an unreasonable expense.
- (g) **Permanent exemption for intermediate load powerplants—**
  - (1) After consideration of a petition (and comments thereon) for an exemption from one or more of the prohibitions of part A on the use of [petroleum](/usc/42/8302.md?p=a-4) by a [powerplant](/usc/42/8302.md?p=a-7-A), the [Secretary](/usc/42/8302.md?p=a-1) may, by order, grant a permanent exemption under this subsection, if he finds that the petitioner has demonstrated that—
    - (A) the [Administrator](/usc/42/4005.md?p=1) of the Environmental Protection [Agency](/usc/42/8262.md?p=1) (or the appropriate [State](/usc/42/2021b.md?p=14) [air pollution control agency](/usc/42/8302.md?p=a-22)) certifies to the [Secretary](/usc/42/8302.md?p=a-1) that the use by such [powerplant](/usc/42/8302.md?p=a-7-A) of [coal](/usc/42/8302.md?p=a-5) or any available [alternate fuel](/usc/42/8302.md?p=a-6) as a [primary energy source](/usc/42/8302.md?p=a-15) will cause or contribute to a concentration, in an air quality control region or any area within such region, of a pollutant for which any national ambient air quality standard is or would be exceeded for such area;
    - (B) such [powerplant](/usc/42/8302.md?p=a-7-A) is to be operated only to replace no more than the equivalent capacity of [existing electric powerplants](/usc/42/8302.md?p=a-9-A)—
      - (i) which use [natural gas](/usc/42/8302.md?p=a-3-A) or [petroleum](/usc/42/8302.md?p=a-4) as a [primary energy source](/usc/42/8302.md?p=a-15),
      - (ii) which are owned by the same [person](/usc/42/8302.md?p=a-2) who is to operate such [powerplant](/usc/42/8302.md?p=a-7-A), and
      - (iii) which, if they used [coal](/usc/42/8302.md?p=a-5) as a [primary energy source](/usc/42/8302.md?p=a-15), would cause or contribute to such a concentration in such region;
    - (C) such [powerplant](/usc/42/8302.md?p=a-7-A) is and shall continue to be operated solely as an [intermediate load powerplant](/usc/42/8302.md?p=a-18-B);
    - (D) the net fuel heat input rate for such [powerplant](/usc/42/8302.md?p=a-7-A) will be maintained at or less than 9,500 [Btu](/usc/42/8302.md?p=a-26)’s per kilowatt hour throughout the remaining useful life of the [powerplant](/usc/42/8302.md?p=a-7-A); and
    - (E) the [powerplant](/usc/42/8302.md?p=a-7-A) has the capability to use synthetic fuels derived from [coal](/usc/42/8302.md?p=a-5) or other [alternate fuel](/usc/42/8302.md?p=a-6).
  - (2) The [Secretary](/usc/42/8302.md?p=a-1) shall, from time to time, review each exemption granted to a [powerplant](/usc/42/8302.md?p=a-7-A) under this subsection, and shall terminate such exemption if he finds that there is available a supply of synthetic fuel derived from [coal](/usc/42/8302.md?p=a-5) or other [alternate fuel](/usc/42/8302.md?p=a-6) suitable for use as a [primary energy source](/usc/42/8302.md?p=a-15) by such [powerplant](/usc/42/8302.md?p=a-7-A).
- (h) **Permanent exemption for use of natural gas by certain powerplants with capacities of less than 250 million Btu’s per hour—**
  - (1) Subject to [paragraph (2)](#h-2), after consideration of a petition (and comments thereon) for an exemption from any prohibition of part A for the use of [natural gas](/usc/42/8302.md?p=a-3-A) by a [powerplant](/usc/42/8302.md?p=a-7-A), the [Secretary](/usc/42/8302.md?p=a-1) shall, by order, grant a permanent exemption under this subsection for such use, if he finds that the petitioner has demonstrated that—
    - (A) such [powerplant](/usc/42/8302.md?p=a-7-A) has a design capability of consuming fuel (or any [mixture](/usc/42/8302.md?p=a-28) thereof) at a fuel heat input rate of less than 250 million [Btu](/usc/42/8302.md?p=a-26)’s per hour;
    - (B) such [powerplant](/usc/42/8302.md?p=a-7-A) was a baseload [powerplant](/usc/42/8302.md?p=a-7-A) on April 20, 1977; and
    - (C) such [powerplant](/usc/42/8302.md?p=a-7-A) is not capable of consuming [coal](/usc/42/8302.md?p=a-5) without—
      - (i) substantial physical modification of the unit; or
      - (ii) substantial reduction in the rated capacity of the unit (as determined by the [Secretary](/usc/42/8302.md?p=a-1)).
  - (2) An exemption under this subsection may only apply to the prohibitions under [section 8341 of this title](/usc/42/8341.md) and prohibitions established by final rules or orders issued before January 1, 1990.
- (i) **Permanent exemption for use of LNG by certain powerplants—** After consideration of a petition (and comments thereon) for an exemption from one or more of the prohibitions of part A for a [powerplant](/usc/42/8302.md?p=a-7-A), the [Secretary](/usc/42/8302.md?p=a-1) shall, by order, grant a permanent exemption under this subsection for the use of liquefied [natural gas](/usc/42/8302.md?p=a-3-A) if the [Administrator](/usc/42/4005.md?p=1) of the Environmental Protection [Agency](/usc/42/8262.md?p=1) (or the appropriate [State](/usc/42/2021b.md?p=14) [air pollution control agency](/usc/42/8302.md?p=a-22)) has certified to the [Secretary](/usc/42/8302.md?p=a-1) that the use of [coal](/usc/42/8302.md?p=a-5) by such [powerplant](/usc/42/8302.md?p=a-7-A) as a [primary energy source](/usc/42/8302.md?p=a-15) will cause or contribute to a concentration, in an air quality control region or any area within such region, of a pollutant for which any national ambient air quality standard is or would be exceeded for such region or area and the use of [coal](/usc/42/8302.md?p=a-5) would not comply with [applicable environmental requirements](/usc/42/8302.md?p=a-17).

## Source credit

(Pub. L. 95–620, title III, § 312, Nov. 9, 1978, 92 Stat. 3309; Pub. L. 100–42, § 1(c)(10), (12), May 21, 1987, 101 Stat. 313.)

## Notes

### Editorial Notes

### References in Text

This chapter, referred to in subsec. (b)(3), was in the original “this Act”, meaning Pub. L. 95–620, Nov. 9, 1978, 92 Stat. 3289, known as the Powerplant and Industrial Fuel Use Act of 1978, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 8301 of this title and Tables.

### Amendments

1987—Subsecs. (a)(1), (b), (d)(1). Pub. L. 100–42, § 1(c)(10), struck out “or installation” after “powerplant” wherever appearing.

Subsec. (d)(2). Pub. L. 100–42, § 1(c)(12)(A), struck out par. (2) which read as follows: “In the case of an existing major fuel-burning installation, the percentage determined by the Secretary under subparagraph (B) of paragraph (1) shall not be less than 25 percent.”

Subsec. (d)(3). Pub. L. 100–42, § 1(c)(12)(B), substituted “The” for “In the case of an existing electric powerplant, the”.

Subsec. (e). Pub. L. 100–42, § 1(c)(10), struck out “or installation” after “powerplant” wherever appearing.

Subsec. (j). Pub. L. 100–42, § 1(c)(12)(C), struck out subsec. (j) which related to granting, by Secretary of Energy, of permanent exemptions for use of natural gas for installations served by international pipelines.

Subsec. (k). Pub. L. 100–42, § 1(c)(12)(C), struck out subsec. (k) which related to granting, by Secretary of Energy, of permanent exemptions for use of natural gas or petroleum for installations based upon product or process requirements.

Subsec. (l). Pub. L. 100–42, § 1(c)(12)(C), struck out subsec. (l) which related to granting, by Secretary of Energy, of permanent exemptions for use of natural gas or petroleum for installations necessary to meet scheduled equipment outages.

### Statutory Notes and Related Subsidiaries

### Exemption for Certain Electric Powerplants as Effective Prior to 180 Days After November 9, 1978

For effectiveness of exemption for certain electric powerplants as prior to 180 days after Nov. 9, 1978, see section 902(a) of Pub. L. 95–620, set out as a note under section 8301 of this title.