(a) The authority of subsection 101(c) of the Act to require the allocation of, or priority performance under contracts or orders relating to, supplies of materials and equipment to maximize domestic energy supplies shall be limited to those exceptional circumstances when it is found that:

1. (1) Such supplies of material and equipment are scarce, critical, and essential; and
2. (2) The maintenance or furtherance of exploration, production, refining, transportation, or conservation of energy supplies, or the construction and maintenance of energy facilities, cannot reasonably be accomplished without exercising this authority.

(c) The allocation of, or priority performance under contracts or orders relating to, supplies of materials and equipment in support of authorized programs or projects shall be so undertaken as to ensure that:

1. (1) Supplies of the specified materials and equipment are available to the extent practicable on time and in proper quantity to authorized programs or projects.
2. (2) The demands of these authorized programs or projects are distributed among suppliers on a fair and equitable basis.
3. (3) Allotments of supplies of materials and equipment are not made in excess of actual current requirements of these authorized programs or projects.
4. (4) Fulfillment of the needs of these authorized programs and projects are achieved in such manner and to such degree as to minimize hardship in the market place.