This report examines the implications of thee Clean Air Act Amendments of 1977 concerned with provisions designed to prevent the significant deterioration of air quality in areas of the nation where the ambient air is cleaner than the minimum levels required to meet National Ambient Air Quality Standards (NAAQS). The legislation will affect the economic competitiveness of alternative fuel cycles for the generation of power and will have implications for the future siting of all new major sources of emissions. This paper examines the potential effects of Prevention of Significant Deterioration (PSD) legislation on energy technologies and industrial facilities and, in particular, the possible effects on energy research and development programs of the Department of Energy (DOE).