[Code of Federal Regulations]

[Title 15, Volume 2]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 15CFR700.21]



[Page 90-91]

 

                  TITLE 15--COMMERCE AND FOREIGN TRADE

 

  CHAPTER VII--BUREAU OF INDUSTRY AND SECURITY, DEPARTMENT OF COMMERCE

 

PART 700_DEFENSE PRIORITIES AND ALLOCATIONS SYSTEM--Table of Contents

 

           Subpart E_Industrial Priorities for Energy Programs

 

Sec. 700.21  Application for priority rating authority.



    (a) For projects believed to maximize domestic energy supplies, a 

person may request priority rating authority for scarce, critical, and 

essential supplies of materials, equipment, and services (related to the 

production of materials or equipment, or the installation, repair, or 

maintenance of equipment) by submitting DOE Form PR 437 to the 

Department of Energy. Blank applications and further information may be 

obtained from the U.S. Department of Energy, Office of Clearance and 

Support, Field/Headquarters Support Division, Forrestal Building, 1000 

Independence Avenue, S.W., Washington, D.C. 20585; Attn.: PR-132.

    (b) On receipt of the application, the Department of Energy will:

    (1) Determine if the project maximizes domestic energy supplies; and

    (2) Find whether the materials, equipment, or services involved in 

the application are critical and essential to the project.

    (c) If the Department of Energy notifies Commerce that the project 

maximizes domestic energy supplies and that the materials, equipment, or 

services are critical and essential, Commerce must find whether the 

items in question are scarce and whether there is a need to use the 

priorities and allocations authorities.

    (1) Scarcity implies an unusual difficulty in obtaining the 

materials, equipment, or services in a timeframe consistent with the 

timely completion of the energy project. Among the factors to be used in 

making the scarcity finding will be the following:

    (i) Value and volume of material or equipment shipments;

    (ii) Consumption of material and equipment;

    (iii) Volume and market trends of imports and exports;

    (iv) Domestic and foreign sources of supply;

    (v) Normal levels of inventories;

    (vi) Rates of capacity utilization;

    (vii) Volume of new orders; and

    (viii) Lead times for new orders.

    (2) In finding whether there is a need to use the priorities and 

allocations authorities, Commerce will consider alternative supply 

solutions and other measures.

    (d) If Commerce does not find that the items of materials, 

equipment, or services are scarce, it will not proceed to analyze the 

need to use the priorities and allocations authorities.

    (e) Commerce will inform the Department of Energy of the results of 

its analysis. If Commerce has made the two required findings, it will 

authorize the Department of Energy to grant the use of a priority rating 

to the applicant.



[[Page 91]]



    (f) Schedule I includes a list of approved programs to support the 

maximization of domestic energy supplies. A Department of Energy 

regulation setting forth the procedures and criteria used by the 

Department of Energy in making its determination and findings is 

published in 10 CFR part 216.



[49 FR 30414, July 30, 1984. Redesignated at 54 FR 601, Jan. 9, 1989, as 

amended at 63 FR 31923, June 11, 1998]