National Energy Development Act of 1979

National Energy Development Act of 1979 - Title I: Introductory - States Congressional findings with respect to economic hardships created by energy shortages and the need for regional cooperation in energy conservation and production efforts. States as the purposes of this Act: (1) the creation of regional energy corporations to promote conservation and production of energy; and (2) the promotion of long-term cooperation among the States in dealing with energy shortages. Defines various terms used in this Act.

Title II: Organization, Management, Powers - Authorizes the creation of independent, for-profit, regional energy corporations. Directs the President, upon the request of the Governors of three or more eligible participating States, to appoint incorporators to serve as the initial board of directors of the regional corporations and to take whatever actions are necessary to establish such corporations.

Stipulates that a State shall become a member of a regional corporation when such State subscribes for State stock, makes an initial contribution to capital, and enacts supporting legislation.

Sets forth provisions relating to the membership structure and terms of office of the boards of directors of regional corporations. Defines the powers of such corporations and their subsidiaries. Grants the power of eminent domain to regional corporations. Authorizes regional corporations to apply for and obtain State permits and licenses which are required to conduct projects related to energy conservation and production.

Indemnifies directors, officers, or employees of a regional corporation against the cost of defending claims against the corporation, provided that such individuals have acted in good faith with respect to the conduct which gave rise to the claim.

Requires directors of regional corporations to disclose financial interests which they hold with individuals transacting business with such corporations.

Authorizes regional corporations to provide technical and administrative assistance to State agencies engaged in energy conservation and production activities.

Requires regional corporations to submit annual reports and audits to the President, Congress, the Secretary of the Treasury, Governors and legislatures of member States. Directs the Governors, on a rotating basis, to designate individuals to evaluate the performance of a regional corporation.

Sets forth procedures for the withdrawal of a State from a regional corporation.

Title III: Projects and Programs of the Corporation - Authorizes regional corporations to participate in any projects or programs related to the alleviation of regional energy shortages. Empowers such corporation to: (1) provide capital to individuals who undertake projects; (2) provide technical, legal, or other assistance to such individuals; and (3) provides for research and development activities.

Prohibits a regional corporation from providing any financial assistance to a project unless its board of directors determines that: (1) the project is expected to have a beneficial impact on the energy problems of a region; (2) the investment, together with other investments of the corporation, will not materially impair the credit of the corporation; (3) private capital is unavailable or insufficient; (4) the investment will not reduce the corporation's investment in conservation to less than 25 percent of its total investments; and (5) provision have been made for equity ownership of a project which the corporation controls during the project's startup period or to which the corporation has contributed more than 50 percent of its capital costs. Limits the corporation's investment in any one project to the greater of ten percent of its borrowing authority or $200,000,000.

Prohibits a regional corporation from controlling any project or contributing more than 50 percent of its capital costs during the project's startup period, unless the board of directors waives such prohibition upon the request of the Secretary of the Treasury or two-thirds of the Governors of the member States.

Provides for review of proposed projects in excess of $5,000,000 by the Governor of the member State in which such project will be carried out. Permits such Governor to veto such project upon notice to the regional corporation.

Requires regional corporations to prepare a regional energy plan every two years which shall establish regional energy conservation and production objectives for periods of five and ten years.

Title IV: Financing - Authorizes the issuance of stock to member States which have paid their initial capital contribution and have enacted supporting legislation. Permits a regional corporation, through its board of directors, to request additional capital contributions from each State subject to the consent of such States. Authorizes the issuance of capital securities to States and private investors in a form determined by the board of directors. Permits a regional corporation to issue its own obligations which shall be general obligations payable out of any revenues.

Prohibits a regional corporation from issuing obligations which exceed 15 times the total of outstanding stock subscriptions.

Prohibits a regional corporation from pledging the credit of the United States.

Title V: Guarantee of Obligations - Authorizes the Secretary of the Treasury to guarantee the obligations of regional energy corporation. Limits the amount of such guarantees to $25,000,000,000 adjusted by the ratio of the population of the member States to total U.S. population.

Establishes an administrative expense fund for the payment of administrative expenses with respect to guaranteed obligations. Sets forth procedures for the collection of guaranteed obligations upon which a regional corporation defaults.

States that interest on guaranteed obligations is not excludible from gross income for income tax purposes.

Prohibits purchase of guaranteed obligations by the United States.

Title VI: State Legislation - Requires member States to enact legislation with respect to State and local taxation of regional corporations, condemnation and eminent domain, permits for energy-related projects, technical assistance to regional corporations, and other matters affecting the operation of regional corporations in a member State.

Title VII: Miscellaneous - Specifies terms of construction and separability of the provisions this Act.