HR 6384
110th CONGRESS
2d Session
H. R. 6384
To provide a comprehensive plan for greater American energy independence.
IN THE HOUSE OF REPRESENTATIVES
June 26, 2008
Mr. BISHOP of Utah (for himself, Mr. BOEHNER, Mr. SALI, Mr. CANNON, Mr. HELLER
of Nevada, Mr. HERGER, Mrs. MCMORRIS RODGERS, Mr. LAMBORN, Mr. DOOLITTLE,
Mr. RENZI, Mrs. MUSGRAVE, Mr. YOUNG of Alaska, Mr. ALEXANDER, Mr. REHBERG,
Mrs. CUBIN, Mr. FRANKS of Arizona, Mr. SIMPSON, Mr. PETERSON of Pennsylvania,
Mr. PEARCE, Mr. TANCREDO, Mr. UPTON, Mrs. BLACKBURN, Mr. WALDEN of Oregon,
Mr. SHADEGG, Mr. WALBERG, and Mrs. MYRICK) introduced the following bill;
which was referred to the Committee on Natural Resources, and in addition
to the Committees on the Judiciary, Energy and Commerce, Science and Technology,
Ways and Means, Agriculture, Education and Labor, Armed Services, Transportation
and Infrastructure, and Oversight and Government Reform, for a period to be
subsequently determined by the Speaker, in each case for consideration of
such provisions as fall within the jurisdiction of the committee concerned
A BILL
To provide a comprehensive plan for greater American energy independence.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
(a) Short Title- This Act may be cited as the `Americans for American Energy
Act of 2008'.
(b) Table of Contents- The table of contents for this Act is as follows:
TITLE I--OUTER CONTINENTAL SHELF
Sec. 103. Definitions under the Submerged Lands Act.
Sec. 104. Seaward boundaries of States.
Sec. 105. Exceptions from confirmation and establishment of States title,
power, and rights.
Sec. 106. Definitions under the Outer Continental Shelf Lands Act.
Sec. 107. Determination of adjacent zones and planning areas.
Sec. 108. Administration of leasing.
Sec. 109. Grant of leases by Secretary.
Sec. 110. Disposition of receipts.
Sec. 111. Reservation of lands and rights.
Sec. 112. Outer Continental Shelf leasing program.
Sec. 113. Coordination with adjacent States.
Sec. 114. Environmental studies.
Sec. 115. Federal Energy Natural Resources Enhancement Act of 2008.
Sec. 116. Termination of effect of laws prohibiting the spending of Appropriated
funds for certain purposes.
Sec. 117. Outer continental shelf incompatible use.
Sec. 118. Repurchase of certain leases.
Sec. 119. Offsite environmental mitigation.
Sec. 120. Minerals management service.
Sec. 121. Authority to use decommissioned offshore oil and gas platforms
and other facilities for artificial reef, scientific research, or other
uses.
Sec. 122. Repeal of requirement to conduct comprehensive inventory of OCS
oil and natural gas resources.
Sec. 123. Onshore and offshore mineral lease fees.
Sec. 124. OCS regional headquarters.
Sec. 125. Leases for areas located within 100 miles of California or Florida.
Sec. 126. Coastal impact assistance.
Sec. 127. Sense of the Congress to buy and build American.
Sec. 128. Repeal of the Gulf of Mexico Energy Security Act of 2006.
Sec. 129. Removal of additional fee for new applications for permits to
drill.
Sec. 130. Credit for producing fuel from nonconventional sources to apply
to gas produced onshore from formations more than 15,000 feet deep.
Sec. 131. Tax credit for carbon dioxide captured from industrial sources
and used in enhanced oil and natural gas recovery.
TITLE II--OIL AND GAS LEASING PROGRAM FOR COASTAL PLAIN OF ALASKA
Sec. 203. Leasing program for lands within the Coastal Plain.
Sec. 205. Grant of leases by the Secretary.
Sec. 206. Lease terms and conditions.
Sec. 207. Coastal plain environmental protection.
Sec. 208. Expedited judicial review.
Sec. 209. Federal and State distribution of revenues.
Sec. 210. Rights-of-way across the coastal plain.
Sec. 212. Local government impact aid and community service assistance.
TITLE III--OIL SHALE AND TAR SANDS
Sec. 302. Repeal of limitation on use of funds for regulations regarding
a commercial leasing program for oil shale resources on public lands.
Sec. 303. Permanent funding for PILT and refuge revenue sharing.
Sec. 304. Reauthorization of the Secure Rural Schools and Community Self-Determination
Act of 2000.
Sec. 305. Oil shale and tar sands amendments.
TITLE IV--COAL
Sec. 402. Standby loans for qualifying coal-to-liquids projects.
Sec. 403. Government auction of long term put option contracts on coal-to-liquid
fuel produced by qualified coal-to-liquid facilities.
TITLE V--NUCLEAR
Sec. 501. Use of funds for recycling.
Sec. 502. Rulemaking for licensing of spent nuclear fuel recycling facilities.
Sec. 503. Nuclear waste fund budget status.
Sec. 504. Waste Confidence.
Sec. 505. ASME Nuclear Certification credit.
TITLE VI--CLEAN RENEWABLE ENERGY
Sec. 602. Developing solar energy on Federal lands.
TITLE VII--PROMOTE GREATER ENERGY EFFICIENCY AND CONSERVATION
Sec. 701. Increase and extension of energy efficient commercial buildings
deduction.
Sec. 702. Permanent extension of the credit for nonbusiness energy property,
the credit for gas produced from biomass and for synthetic fuels produced
from coal, and the credit for energy efficient appliances.
Sec. 703. Extension and clarification of new energy efficient home credit.
Sec. 704. Extension and modification of deduction for energy efficient commercial
buildings.
Sec. 705. Deduction for energy efficient low-rise buildings.
TITLE VIII--INCREASING AMERICA'S GASOLINE REFINING CAPABILITIES
Sec. 802. State assistance.
Sec. 803. Refinery process coordination and procedures.
Sec. 804. Designation of closed military bases.
Sec. 805. Savings clause.
Sec. 806. Refinery revitalization repeal.
Sec. 807. New source review under the Clean Air Act.
Sec. 808. Designation of new refining capacity on brownfield sites.
Sec. 809. Year extension of election to expense certain refineries.
TITLE IX--COMMON SENSE REGULATORY RELIEF AND POLICY REFORM
Sec. 901. Extension and modification of renewable energy production tax
credit.
Sec. 902. Extension and modification of solar energy and fuel cell investment
tax credit.
Sec. 903. Repeal of requirement to deduct from an amount payable to each
state.
Sec. 904. Production credit for electricity produced from conventional hydropower
projects.
Sec. 905. Definition of renewable biomass.
Sec. 906. NEPA judicial review.
TITLE X--TAX-EXEMPT FINANCING OF CERTAIN ELECTRIC TRANSMISSION FACILITIES
Sec. 1001. Tax-exempt financing of certain electric transmission facilities
not subject to private business use test.
TITLE XI--RESTORE OUR DOMESTIC ENERGY WORKFORCE SCIENCE AND TECHNOLOGY EDUCATION
Sec. 1103. Maintaining science and technology education programs.
Sec. 1104. Funds for scholarships and fellowships.
Sec. 1105. Use of funds by institutions.
Sec. 1106. Establishment of a national center.
Sec. 1107. Stakeholder Committee on Science and Technology Education.
Sec. 1108. Career technical and community college education.
Sec. 1109. Nuclear science and engineering scholarships.
Sec. 1110. Nuclear workforce development.
Sec. 1111. Authorization of appropriations.
TITLE XII--TAPPING AMERICA'S INGENUITY AND CREATIVITY
Sec. 1202. Statement of policy.
Sec. 1203. Prize authority.
Sec. 1205. Intellectual property.
Sec. 1206. Waiver of liability.
Sec. 1207. Authorization of appropriations.
Sec. 1208. Next generation automobile prize program.
Sec. 1209. Advanced battery manufacturing incentive program.
SEC. 2. FINDINGS.
Congress finds as follows:
(1) America has a tremendous abundance of virtually all energy resources.
(2) America has 21st century technologies that can harvest these resources
with very little environmental impact.
(3) America can greatly strengthen our national security by reducing our
dependence on foreign energy supplies, particularly from hostile nations.
(4) America needs to develop more of all of its resources in order to achieve
true energy independence.
TITLE I--OUTER CONTINENTAL SHELF
SEC. 101. SHORT TITLE.
This title may be cited as the `Deep Ocean Energy Resources Act of 2008'.
SEC. 102. POLICY.
It is the policy of the United States that--
(1) the United States is blessed with abundant energy resources on the outer
Continental Shelf and has developed a comprehensive framework of environmental
laws and regulations and fostered the development of state-of-the-art technology
that allows for the responsible development of these resources for the benefit
of its citizenry;
(2) adjacent States are required by the circumstances to commit significant
resources in support of exploration, development, and production activities
for mineral resources on the outer Continental Shelf, and it is fair and
proper for a portion of the receipts from such activities to be shared with
Adjacent States and their local coastal governments;
(3) the existing laws governing the leasing and production of the mineral
resources of the outer Continental Shelf have reduced the production of
mineral resources, have preempted Adjacent States from being sufficiently
involved in the decisions regarding the allowance of mineral resource development,
and have been harmful to the national interest;
(4) the national interest is served by granting the Adjacent States more
options related to whether or not mineral leasing should occur in the outer
Continental Shelf within their Adjacent Zones;
(5) it is not reasonably foreseeable that exploration of a leased tract
located more than 25 miles seaward of the coastline, development and production
of a natural gas discovery located more than 25 miles seaward of the coastline,
or development and production of an oil discovery located more than 50 miles
seaward of the coastline will adversely affect resources near the coastline;
(6) transportation of oil from a leased tract might reasonably be foreseen,
under limited circumstances, to have the potential to adversely affect resources
near the coastline if the oil is within 50 miles of the coastline, but such
potential to adversely affect such resources is likely no greater, and probably
less, than the potential impacts from tanker transportation because tanker
spills usually involve large releases of oil over a brief period of time;
and
(7) among other bodies of inland waters, the Great Lakes, Long Island Sound,
Delaware Bay, Chesapeake Bay, Albemarle Sound, San Francisco Bay, and Puget
Sound are not part of the outer Continental Shelf, and are not subject to
leasing by the Federal Government for the exploration, development, and
production of any mineral resources that might lie beneath them.
SEC. 103. DEFINITIONS UNDER THE SUBMERGED LANDS ACT.
Section 2 of the Submerged Lands Act (43 U.S.C. 1301) is amended--
(1) in subparagraph (2) of paragraph (a) by striking all after `seaward
to a line' and inserting `twelve nautical miles distant from the coast line
of such State;';
(2) by striking out paragraph (b) and redesignating the subsequent paragraphs
in order as paragraphs (b) through (g);
(3) by striking the period at the end of paragraph (g) (as so redesignated)
and inserting `; and';
(4) by adding the following:
`(i) The term `Secretary' means the Secretary of the Interior.'; and
(5) by defining `State' as it is defined in section 2(r) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1331(r)).
SEC. 104. SEAWARD BOUNDARIES OF STATES.
Section 4 of the Submerged Lands Act (43 U.S.C. 1312) is amended--
(1) in the first sentence by striking `original', and in the same sentence
by striking `three geographical' and inserting `twelve nautical'; and
(2) by striking all after the first sentence and inserting the following:
`Extension and delineation of lateral offshore State boundaries under the
provisions of this Act shall follow the lines used to determine the Adjacent
Zones of coastal States under the Outer Continental Shelf Lands Act to the
extent such lines extend twelve nautical miles for the nearest coastline.'.
SEC. 105. EXCEPTIONS FROM CONFIRMATION AND ESTABLISHMENT OF STATES TITLE,
POWER, AND RIGHTS.
Section 5 of the Submerged Lands Act (43 U.S.C. 1313) is amended by--
(1) by redesignating paragraphs (a) through (c) in order as paragraphs (1)
through (3);
(2) by inserting `(a)' before `There is excepted'; and
(3) by inserting at the end the following:
`(b) Exception of Oil and Gas Mineral Rights- There is excepted from the operation
of sections 3 and 4 all of the oil and gas mineral rights for lands beneath
the navigable waters that are located within the expanded offshore State seaward
boundaries established under this Act. These oil and gas mineral rights shall
remain Federal property and shall be considered to be part of the Federal
outer Continental Shelf for purposes of the Outer Continental Shelf Lands
Act (43 U.S.C. 1331 et seq.) and subject to leasing under the authority of
that Act and to laws applicable to the leasing of the oil and gas resources
of the Federal outer Continental Shelf. All existing Federal oil and gas leases
within the expanded offshore State seaward boundaries shall continue unchanged
by the provisions of this Act, except as otherwise provided herein. However,
a State may exercise all of its sovereign powers of taxation within the entire
extent of its expanded offshore State boundaries.'.
SEC. 106. DEFINITIONS UNDER THE OUTER CONTINENTAL SHELF LANDS ACT.
Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331) is amended--
(1) by amending paragraph (f) to read as follows:
`(f) The term `affected State' means the `Adjacent State'.';
(2) by striking the semicolon at the end of each of paragraphs (a) through
(o) and inserting a period;
(3) by striking `; and' at the end of paragraph (p) and inserting a period;
(4) by adding at the end the following:
`(r) The term `Adjacent State' means, with respect to any program, plan, lease
sale, leased tract or other activity, proposed, conducted, or approved pursuant
to the provisions of this Act, any State the laws of which are declared, pursuant
to section 4(a)(2), to be the law of the United States for the portion of
the outer Continental Shelf on which such program, plan, lease sale, leased
tract or activity appertains or is, or is proposed to be, conducted. For purposes
of this paragraph, the term `State' includes the Commonwealth of Puerto Rico,
the Commonwealth of the Northern Mariana Islands, the Virgin Islands, American
Samoa, Guam, and the other Territories of the United States.
`(s) The term `Adjacent Zone' means, with respect to any program, plan, lease
sale, leased tract, or other activity, proposed, conducted, or approved pursuant
to the provisions of this Act, the portion of the outer Continental Shelf
for which the laws of a particular Adjacent State are declared, pursuant to
section 4(a)(2), to be the law of the United States.
`(t) The term `miles' means statute miles.
`(u) The term `coastline' has the same meaning as the term `coast line' as
defined in section 2(c) of the Submerged Lands Act (43 U.S.C. 1301(c)).
`(v) The term `Neighboring State' means a coastal State having a common boundary
at the coastline with the Adjacent State.'; and
(5) in paragraph (a), by inserting after `control' the following: `or lying
within the United States exclusive economic zone adjacent to the Territories
of the United States'.
SEC. 107. DETERMINATION OF ADJACENT ZONES AND PLANNING AREAS.
Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (43 U.S.C. 1333(a)(2)(A))
is amended in the first sentence by striking `, and the President' and all
that follows through the end of the sentence and inserting the following:
`. The lines extending seaward and defining each State's Adjacent Zone, and
each OCS Planning Area, are as indicated on the maps for each outer Continental
Shelf region entitled `Alaska OCS Region State Adjacent Zone and OCS Planning
Areas', `Pacific OCS Region State Adjacent Zones and OCS Planning Areas',
`Gulf of Mexico OCS Region State Adjacent Zones and OCS Planning Areas', and
`Atlantic OCS Region State Adjacent Zones and OCS Planning Areas', all of
which are dated September 2005 and on file in the Office of the Director,
Minerals Management Service.'.
SEC. 108. ADMINISTRATION OF LEASING.
Section 5 of the Outer Continental Shelf Lands Act (43 U.S.C. 1334) is amended
by adding at the end the following:
`(k) Voluntary Partial Relinquishment of a Lease- Any lessee of a producing
lease may relinquish to the Secretary any portion of a lease that the lessee
has no interest in producing and that the Secretary finds is geologically
prospective. In return for any such relinquishment, the Secretary shall provide
to the lessee a royalty incentive for the portion of the lease retained by
the lessee, in accordance with regulations promulgated by the Secretary to
carry out this subsection. The Secretary shall publish final regulations implementing
this subsection within 365 days after the date of the enactment of the Deep
Ocean Energy Resources Act of 2008.
`(l) Natural Gas Lease Regulations- Not later than July 1, 2010, the Secretary
shall publish a final regulation that shall--
`(1) establish procedures for entering into natural gas leases;
`(2) ensure that natural gas leases are only available for tracts on the
outer Continental Shelf that are wholly within 100 miles of the coastline
within an area withdrawn from disposition by leasing on the day after the
date of enactment of the Deep Ocean Energy Resources Act of 2008;
`(3) provide that natural gas leases shall contain the same rights and obligations
established for oil and gas leases, except as otherwise provided in the
Deep Ocean Energy Resources Act of 2008;
`(4) provide that, in reviewing the adequacy of bids for natural gas leases,
the value of any crude oil estimated to be contained within any tract shall
be excluded;
`(5) provide that any crude oil produced from a well and reinjected into
the leased tract shall not be subject to payment of royalty, and that the
Secretary shall consider, in setting the royalty rates for a natural gas
lease, the additional cost to the lessee of not producing any crude oil;
and
`(6) provide that any Federal law that applies to an oil and gas lease on
the outer Continental Shelf shall apply to a natural gas lease unless otherwise
clearly inapplicable.'.
SEC. 109. GRANT OF LEASES BY SECRETARY.
Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended--
(1) in subsection (a)(1) by inserting after the first sentence the following:
`Further, the Secretary may grant natural gas leases in a manner similar
to the granting of oil and gas leases and under the various bidding systems
available for oil and gas leases.';
(2) by adding at the end of subsection (b) the following: `The Secretary
may issue more than one lease for a given tract if each lease applies to
a separate and distinct range of vertical depths, horizontal surface area,
or a combination of the two. The Secretary may issue regulations that the
Secretary determines are necessary to manage such leases consistent with
the purposes of this Act.';
(3) by amending subsection (p)(2)(B) to read as follows:
`(B) The Secretary shall provide for the payment to coastal states, and
their local coastal governments, of 75 percent of Federal receipts from
projects authorized under this section located partially or completely
within the area extending seaward of State submerged lands out to 4 marine
leagues from the coastline, and the payment to coastal states of 50 percent
of the receipts from projects completely located in the area more than
4 marine leagues from the coastline. Payments shall be based on a formula
established by the Secretary by rulemaking no later than 180 days after
the date of the enactment of the Deep Ocean Energy Resources Act of 2008
that provides for equitable distribution, based on proximity to the project,
among coastal states that have coastline that is located within 200 miles
of the geographic center of the project.';
(4) by adding at the end the following:
`(1) RIGHT TO PRODUCE NATURAL GAS- A lessee of a natural gas lease shall
have the right to produce the natural gas from a field on a natural gas
leased tract if the Secretary estimates that the discovered field has at
least 40 percent of the economically recoverable Btu content of the field
contained within natural gas and such natural gas is economical to produce.
`(2) CRUDE OIL- A lessee of a natural gas lease may not produce crude oil
from the lease unless the Governor of the Adjacent State agrees to such
production.
`(3) ESTIMATES OF BTU CONTENT- The Secretary shall make estimates of the
natural gas Btu content of discovered fields on a natural gas lease only
after the completion of at least one exploration well, the data from which
has been tied to the results of a three-dimensional seismic survey of the
field. The Secretary may not require the lessee to further delineate any
discovered field prior to making such estimates.
`(4) DEFINITION OF NATURAL GAS- For purposes of a natural gas lease, natural
gas means natural gas and all substances produced in association with gas,
including, but not limited to, hydrocarbon liquids (other than crude oil)
that are obtained by the condensation of hydrocarbon vapors and separate
out in liquid form from the produced gas stream.
`(r) Removal of Restrictions on Joint Bidding in Certain Areas of the Outer
Continental Shelf- Restrictions on joint bidders shall no longer apply to
tracts located in the Alaska OCS Region. Such restrictions shall not apply
to tracts in other OCS regions determined to be `frontier tracts' or otherwise
`high cost tracts' under final regulations that shall be published by the
Secretary by not later than 365 days after the date of the enactment of the
Deep Ocean Energy Resources Act of 2008.
`(s) Royalty Suspension Provisions- After the date of the enactment of the
Deep Ocean Energy Resources Act of 2008, price thresholds shall apply to any
royalty suspension volumes granted by the Secretary. Unless otherwise set
by Secretary by regulation or for a particular lease sale, the price thresholds
shall be $40.50 for oil (January 1, 2006 dollars) and $6.75 for natural gas
(January 1, 2006 dollars).
`(t) Conservation of Resources Fees- Not later than one year after the date
of the enactment of the Deep Ocean Energy Resources Act of 2008, the Secretary
by regulation shall establish a conservation of resources fee for nonproducing
leases that will apply to new and existing leases which shall be set at $3.75
per acre per year. This fee shall apply from and after October 1, 2008, and
shall be treated as offsetting receipts.';
(5) by striking subsection (a)(3)(A) and redesignating the subsequent subparagraphs
as subparagraphs (A) and (B), respectively;
(6) in subsection (a)(3)(A) (as so redesignated) by striking `In the Western'
and all that follows through `the Secretary' the first place it appears
and inserting `The Secretary'; and
(7) effective October 1, 2008, in subsection (g)--
(A) by striking all after `(g)', except paragraph (3);
(B) by striking the last sentence of paragraph (3); and
SEC. 110. DISPOSITION OF RECEIPTS.
Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) is amended--
(1) by designating the existing text as subsection (a);
(2) in subsection (a) (as so designated) by inserting `, if not paid as
otherwise provided in this title' after `receipts'; and
(3) by adding the following:
`(b) Treatment of OCS Receipts From Tracts Completely Within 100 Miles of
the Coastline-
`(1) DEPOSIT- The Secretary shall deposit into a separate account in the
Treasury the portion of OCS Receipts for each fiscal year that will be shared
under paragraphs (2), (3), and (4).
`(2) PHASED-IN RECEIPTS SHARING-
`(A) Beginning October 1, 2008, the Secretary shall share OCS Receipts
derived from the following areas:
`(i) Lease tracts located on portions of the Gulf of Mexico OCS Region
completely beyond 4 marine leagues from any coastline and completely
within 100 miles of any coastline that were available for leasing under
the 2002-2007 5-Year OCS Oil and Gas Leasing Program.
`(ii) Lease tracts in production prior to October 1, 2008, completely
beyond 4 marine leagues from any coastline and completely within 100
miles of any coastline located on portions of the OCS that were not
available for leasing under the 2002-2007 5-Year OCS Oil and Gas Leasing
Program.
`(iii) Lease tracts for which leases are issued prior to October 1,
2008, located in the Alaska OCS Region completely beyond 4 marine leagues
from any coastline and completely within 100 miles of the coastline.
`(B) The Secretary shall share the following percentages of OCS Receipts
from the leases described in subparagraph (A) derived during the fiscal
year indicated:
`(i) For fiscal year 2009, 5 percent.
`(ii) For fiscal year 2010, 8 percent.
`(iii) For fiscal year 2011, 11 percent.
`(iv) For fiscal year 2012, 14 percent.
`(v) For fiscal year 2013, 17 percent.
`(vi) For fiscal year 2014, 20 percent.
`(vii) For fiscal year 2015, 23 percent.
`(viii) For fiscal year 2016, 26 percent.
`(ix) For fiscal year 2017, 29 percent.
`(x) For fiscal year 2018, 32 percent.
`(xi) For fiscal year 2019, 35 percent.
`(xii) For fiscal year 2020 and each subsequent fiscal year, 37.5 percent.
`(C) The provisions of this paragraph shall not apply to leases that could
not have been issued but for section 5(k) of this Act or section 6(2)
of the Deep Ocean Energy Resources Act of 2008.
`(3) IMMEDIATE RECEIPTS SHARING- Beginning October 1, 2008, the Secretary
shall share 37.50 percent of OCS Receipts derived from all leases located
completely beyond 4 marine leagues from any coastline and completely within
100 miles of any coastline not included within the provisions of paragraph
(2).
`(4) RECEIPTS SHARING FROM TRACTS WITHIN 4 MARINE LEAGUES OF ANY COASTLINE-
`(A) AREAS DESCRIBED IN PARAGRAPH (2)- Beginning October 1, 2008, and
continuing through September 30, 2010, the Secretary shall share 25 percent
of OCS Receipts derived from all leases located within 4 marine leagues
from any coastline within areas described in paragraph (2). For each fiscal
year after September 30, 2010, the Secretary shall increase the percent
shared in 5 percent increments each fiscal year until the sharing rate
for all leases located within 4 marine leagues from any coastline within
areas described in paragraph (2) becomes 75 percent.
`(B) AREAS NOT DESCRIBED IN PARAGRAPH (2)- Beginning October 1, 2008,
the Secretary shall share 75 percent of OCS receipts derived from all
leases located completely or partially within 4 marine leagues from any
coastline within areas not described paragraph (2).
`(5) ALLOCATIONS- The Secretary shall allocate the OCS Receipts deposited
into the separate account established by paragraph (1) that are shared under
paragraphs (2), (3), and (4) as follows:
`(A) BONUS BIDS- Deposits derived from bonus bids from a leased tract,
including interest thereon, shall be allocated at the end of each fiscal
year to the Adjacent State.
`(B) ROYALTIES- Deposits derived from royalties from a leased tract, including
interest thereon, shall be allocated at the end of each fiscal year to
the Adjacent State and any other producing State or States with a leased
tract within its Adjacent Zone within 100 miles of its coastline that
generated royalties during the fiscal year, if the other producing or
States have a coastline point within 300 miles of any portion of the leased
tract, in which case the amount allocated for the leased tract shall be--
`(i) one-third to the Adjacent State; and
`(ii) two-thirds to each producing State, including the Adjacent State,
inversely proportional to the distance between the nearest point on
the coastline of the producing State and the geographic center of the
leased tract.
`(c) Treatment of OCS Receipts From Tracts Partially or Completely Beyond
100 Miles of the Coastline-
`(1) DEPOSIT- The Secretary shall deposit into a separate account in the
Treasury the portion of OCS Receipts for each fiscal year that will be shared
under paragraphs (2) and (3).
`(2) PHASED-IN RECEIPTS SHARING-
`(A) Beginning October 1, 2008, the Secretary shall share OCS Receipts
derived from the following areas:
`(i) Lease tracts located on portions of the Gulf of Mexico OCS Region
partially or completely beyond 100 miles of any coastline that were
available for leasing under the 2002-2007 5-Year OCS Oil and Gas Leasing
Program.
`(ii) Lease tracts in production prior to October 1, 2008, partially
or completely beyond 100 miles of any coastline located on portions
of the OCS that were not available for leasing under the 2002-2007 5-Year
OCS Oil and Gas Leasing Program.
`(iii) Lease tracts for which leases are issued prior to October 1,
2008, located in the Alaska OCS Region partially or completely beyond
100 miles of the coastline.
`(B) The Secretary shall share the following percentages of OCS Receipts
from the leases described in subparagraph (A) derived during the fiscal
year indicated:
`(i) For fiscal year 2009, 5 percent.
`(ii) For fiscal year 2010, 8 percent.
`(iii) For fiscal year 2011, 11 percent.
`(iv) For fiscal year 2012, 14 percent.
`(v) For fiscal year 2013, 17 percent.
`(vi) For fiscal year 2014, 20 percent.
`(vii) For fiscal year 2015, 23 percent.
`(viii) For fiscal year 2016, 26 percent.
`(ix) For fiscal year 2017, 29 percent.
`(x) For fiscal year 2018, 32 percent.
`(xi) For fiscal year 2019, 35 percent.
`(xii) For fiscal year 2020 and each subsequent fiscal year, 37.5 percent.
`(C) The provisions of this paragraph shall not apply to leases that could
not have been issued but for section 5(k) of this Act or section 6(2)
of the Deep Ocean Energy Resources Act of 2008.
`(3) IMMEDIATE RECEIPTS SHARING- Beginning October 1, 2008, the Secretary
shall share 37.5 percent of OCS Receipts derived on and after October 1,
2008, from all leases located partially or completely beyond 100 miles of
any coastline not included within the provisions of paragraph (2), except
that the Secretary shall only share 25 percent of such OCS Receipts derived
from all such leases within a State's Adjacent Zone if no leasing is allowed
within any portion of that State's Adjacent Zone located completely within
100 miles of any coastline.
`(4) ALLOCATIONS- The Secretary shall allocate the OCS Receipts deposited
into the separate account established by paragraph (1) that are shared under
paragraphs (2) and (3) as follows:
`(A) BONUS BIDS- Deposits derived from bonus bids from a leased tract,
including interest thereon, shall be allocated at the end of each fiscal
year to the Adjacent State.
`(B) ROYALTIES- Deposits derived from royalties from a leased tract, including
interest thereon, shall be allocated at the end of each fiscal year to
the Adjacent State and any other producing State or States with a leased
tract within its Adjacent Zone partially or completely beyond 100 miles
of its coastline that generated royalties during the fiscal year, if the
other producing State or States have a coastline point within 300 miles
of any portion of the leased tract, in which case the amount allocated
for the leased tract shall be--
`(i) one-third to the Adjacent State; and
`(ii) two-thirds to each producing State, including the Adjacent State,
inversely proportional to the distance between the nearest point on
the coastline of the producing State and the geographic center of the
leased tract.
`(d) Transmission of Allocations-
`(1) IN GENERAL- Not later than 90 days after the end of each fiscal year,
the Secretary shall transmit--
`(A) to each State 60 percent of such State's allocations under subsections
(b)(5)(A), (b)(5)(B), (c)(4)(A), and (c)(4)(B) for the immediate prior
fiscal year;
`(B) to each coastal county-equivalent and municipal political subdivisions
of such State a total of 40 percent of such State's allocations under
subsections (b)(5)(A), (b)(5)(B), (c)(4)(A), and (c)(4)(B), together with
all accrued interest thereon; and
`(C) the remaining allocations under subsections (b)(5) and (c)(4), together
with all accrued interest thereon.
`(2) ALLOCATIONS TO COASTAL COUNTY-EQUIVALENT POLITICAL SUBDIVISIONS- The
Secretary shall make an initial allocation of the OCS Receipts to be shared
under paragraph (1)(B) as follows:
`(A) 25 percent shall be allocated to coastal county-equivalent political
subdivisions that are completely more than 25 miles landward of the coastline
and at least a part of which lies not more than 75 miles landward from
the coastline, with the allocation among such coastal county-equivalent
political subdivisions based on population.
`(B) 75 percent shall be allocated to coastal county-equivalent political
subdivisions that are completely or partially less than 25 miles landward
of the coastline, with the allocation among such coastal county-equivalent
political subdivisions to be further allocated as follows:
`(i) 25 percent shall be allocated based on the ratio of such coastal
county-equivalent political subdivision's population to the coastal
population of all coastal county-equivalent political subdivisions in
the State.
`(ii) 25 percent shall be allocated based on the ratio of such coastal
county-equivalent political subdivision's coastline miles to the coastline
miles of all coastal county-equivalent political subdivisions in the
State as calculated by the Secretary. In such calculations, coastal
county-equivalent political subdivisions without a coastline shall be
considered to have 50 percent of the average coastline miles of the
coastal county-equivalent political subdivisions that do have coastlines.
`(iii) 25 percent shall be allocated to all coastal county-equivalent
political subdivisions having a coastline point within 300 miles of
the leased tract for which OCS Receipts are being shared based on a
formula that allocates the funds based on such coastal county-equivalent
political subdivision's relative distance from the leased tract.
`(iv) 25 percent shall be allocated to all coastal county-equivalent
political subdivisions having a coastline point within 300 miles of
the leased tract for which OCS Receipts are being shared based on the
relative level of outer Continental Shelf oil and gas activities in
a coastal political subdivision compared to the level of outer Continental
Shelf activities in all coastal political subdivisions in the State.
The Secretary shall define the term `outer Continental Shelf oil and
gas activities' for purposes of this subparagraph to include, but not
be limited to, construction of vessels, drillships, and platforms involved
in exploration, production, and development on the outer Continental
Shelf; support and supply bases, ports, and related activities; offices
of geologists, geophysicists, engineers, and other professionals involved
in support of exploration, production, and development of oil and gas
on the outer Continental Shelf; pipelines and other means of transporting
oil and gas production from the outer Continental Shelf; and processing
and refining of oil and gas production from the outer Continental Shelf.
For purposes of this subparagraph, if a coastal county-equivalent political
subdivision does not have a coastline, its coastal point shall be the
point on the coastline closest to it.
`(3) ALLOCATIONS TO COASTAL MUNICIPAL POLITICAL SUBDIVISIONS- The initial
allocation to each coastal county-equivalent political subdivision under
paragraph (2) shall be further allocated to the coastal county-equivalent
political subdivision and any coastal municipal political subdivisions located
partially or wholly within the boundaries of the coastal county-equivalent
political subdivision as follows:
`(A) One-third shall be allocated to the coastal county-equivalent political
subdivision.
`(B) Two-thirds shall be allocated on a per capita basis to the municipal
political subdivisions and the county-equivalent political subdivision,
with the allocation to the latter based upon its population not included
within the boundaries of a municipal political subdivision.
`(e) Investment of Deposits- Amounts deposited under this section shall be
invested by the Secretary of the Treasury in securities backed by the full
faith and credit of the United States having maturities suitable to the needs
of the account in which they are deposited and yielding the highest reasonably
available interest rates as determined by the Secretary of the Treasury.
`(f) Use of Funds- A recipient of funds under this section may use the funds
for one or more of the following:
`(1) To reduce in-State college tuition at public institutions of higher
learning and otherwise support public education, including career technical
education.
`(2) To make transportation infrastructure improvements.
`(4) To promote, fund, and provide for--
`(A) coastal or environmental restoration;
`(B) fish, wildlife, and marine life habitat enhancement;
`(C) waterways construction and maintenance;
`(D) levee construction and maintenance and shore protection; and
`(E) marine and oceanographic education and research.
`(5) To promote, fund, and provide for--
`(A) infrastructure associated with energy production activities conducted
on the outer Continental Shelf;
`(B) energy demonstration projects;
`(C) supporting infrastructure for shore-based energy projects;
`(D) State geologic programs, including geologic mapping and data storage
programs, and state geophysical data acquisition;
`(E) State seismic monitoring programs, including operation of monitoring
stations;
`(F) development of oil and gas resources through enhanced recovery techniques;
`(G) alternative energy development, including bio fuels, coal-to-liquids,
oil shale, tar sands, geothermal, geopressure, wind, waves, currents,
hydro, and other renewable energy;
`(H) energy efficiency and conservation programs; and
`(I) front-end engineering and design for facilities that produce liquid
fuels from hydrocarbons and other biological matter.
`(6) To promote, fund, and provide for--
`(A) historic preservation programs and projects;
`(B) natural disaster planning and response; and
`(C) hurricane and natural disaster insurance programs.
`(7) For any other purpose as determined by State law.
`(g) No Accounting Required- No recipient of funds under this section shall
be required to account to the Federal Government for the expenditure of such
funds, except as otherwise may be required by law. However, States may enact
legislation providing for accounting for and auditing of such expenditures.
Further, funds allocated under this section to States and political subdivisions
may be used as matching funds for other Federal programs.
`(h) Effect of Future Laws- Enactment of any future Federal statute that has
the effect, as determined by the Secretary, of restricting any Federal agency
from spending appropriated funds, or otherwise preventing it from fulfilling
its pre-existing responsibilities as of the date of enactment of the statute,
unless such responsibilities have been reassigned to another Federal agency
by the statute with no prevention of performance, to issue any permit or other
approval impacting on the OCS oil and gas leasing program, or any lease issued
thereunder, or to implement any provision of this Act shall automatically
prohibit any sharing of OCS Receipts under this section directly with the
States, and their coastal political subdivisions, for the duration of the
restriction. The Secretary shall make the determination of the existence of
such restricting effects within 30 days of a petition by any outer Continental
Shelf lessee or producing State.
`(i) Definitions- In this section:
`(1) COASTAL COUNTY-EQUIVALENT POLITICAL SUBDIVISION- The term `coastal
county-equivalent political subdivision' means a political jurisdiction
immediately below the level of State government, including a county, parish,
borough in Alaska, independent municipality not part of a county, parish,
or borough in Alaska, or other equivalent subdivision of a coastal State,
that lies within the coastal zone.
`(2) COASTAL MUNICIPAL POLITICAL SUBDIVISION- The term `coastal municipal
political subdivision' means a municipality located within and part of a
county, parish, borough in Alaska, or other equivalent subdivision of a
State, all or part of which coastal municipal political subdivision lies
within the coastal zone.
`(3) COASTAL POPULATION- The term `coastal population' means the population
of all coastal county-equivalent political subdivisions, as determined by
the most recent official data of the Census Bureau.
`(4) COASTAL ZONE- The term `coastal zone' means that portion of a coastal
State, including the entire territory of any coastal county-equivalent political
subdivision at least a part of which lies, within 75 miles landward from
the coastline, or a greater distance as determined by State law enacted
to implement this section.
`(5) BONUS BIDS- The term `bonus bids' means all funds received by the Secretary
to issue an outer Continental Shelf minerals lease.
`(6) ROYALTIES- The term `royalties' means all funds received by the Secretary
from production of oil or natural gas, or the sale of production taken in-kind,
from an outer Continental Shelf minerals lease.
`(7) PRODUCING STATE- The term `producing State' means an Adjacent State
having an Adjacent Zone containing leased tracts from which OCS Receipts
were derived.
`(8) OCS RECEIPTS- The term `OCS Receipts' means bonus bids, royalties,
and conservation of resources fees.'.
SEC. 111. RESERVATION OF LANDS AND RIGHTS.
Section 12 of the Outer Continental Shelf Lands Act (43 U.S.C. 1341) is amended--
(1) in subsection (a) by adding at the end the following: `The President
may partially or completely revise or revoke any prior withdrawal made by
the President under the authority of this section. The President may not
revise or revoke a withdrawal that is extended by a State under subsection
(h), nor may the President withdraw from leasing any area for which a State
failed to prohibit, or petition to prohibit, leasing under subsection (g).
Further, in the area of the outer Continental Shelf more than 100 miles
from any coastline, not more than 25 percent of the acreage of any OCS Planning
Area may be withdrawn from leasing under this section at any point in time.
A withdrawal by the President may be for a term not to exceed 10 years.
When considering potential uses of the outer Continental Shelf, to the maximum
extent possible, the President shall accommodate competing interests and
potential uses.';
(2) by adding at the end the following:
`(g) Availability for Leasing Within Certain Areas of the Outer Continental
Shelf-
`(1) PROHIBITION AGAINST LEASING-
`(A) UNAVAILABLE FOR LEASING WITHOUT STATE REQUEST- Except as otherwise
provided in this subsection, from and after enactment of the Deep Ocean
Energy Resources Act of 2008, the Secretary shall not offer for leasing
for oil and gas, or natural gas, any area within 50 miles of the coastline
that was withdrawn from disposition by leasing in the Atlantic OCS Region
or the Pacific OCS Region, or the Gulf of Mexico OCS Region Eastern Planning
Area, as depicted on the maps referred to in this subparagraph, under
the `Memorandum on Withdrawal of Certain Areas of the United States Outer
Continental Shelf from Leasing Disposition', 34 Weekly Comp. Pres. Doc.
1111, dated June 12, 1998, or any area within 50 miles of the coastline
not withdrawn under that Memorandum that is included within the Gulf of
Mexico OCS Region Eastern Planning Area as indicated on the map entitled
`Gulf of Mexico OCS Region State Adjacent Zones and OCS Planning Areas'
or the Florida Straits Planning Area as indicated on the map entitled
`Atlantic OCS Region State Adjacent Zones and OCS Planning Areas', both
of which are dated September 2005 and on file in the Office of the Director,
Minerals Management Service.
`(B) AREAS BETWEEN 50 AND 100 MILES FROM THE COASTLINE- Unless an Adjacent
State petitions under subsection (h) within one year after the date of
the enactment of the Deep Ocean Energy Resources Act of 2008 for natural
gas leasing or by June 30, 2010, for oil and gas leasing, the Secretary
shall offer for leasing any area more than 50 miles but less than 100
miles from the coastline that was withdrawn from disposition by leasing
in the Atlantic OCS Region, the Pacific OCS Region, or the Gulf of Mexico
OCS Region Eastern Planning Area, as depicted on the maps referred to
in this subparagraph, under the `Memorandum on Withdrawal of Certain Areas
of the United States Outer Continental Shelf from Leasing Disposition',
34 Weekly Comp. Pres. Doc. 1111, dated June 12, 1998, or any area more
than 50 miles but less than 100 miles of the coastline not withdrawn under
that Memorandum that is included within the Gulf of Mexico OCS Region
Eastern Planning Area as indicated on the map entitled `Gulf of Mexico
OCS Region State Adjacent Zones and OCS Planning Areas' or within the
Florida Straits Planning Area as indicated on the map entitled `Atlantic
OCS Region State Adjacent Zones and OCS Planning Areas', both of which
are dated September 2005 and on file in the Office of the Director, Minerals
Management Service.
`(2) REVOCATION OF WITHDRAWAL- The provisions of the `Memorandum on Withdrawal
of Certain Areas of the United States Outer Continental Shelf from Leasing
Disposition', 34 Weekly Comp. Pres. Doc. 1111, dated June 12, 1998, are
hereby revoked and are no longer in effect. Any tract only partially added
to the Gulf of Mexico OCS Region Central Planning Area by this Act shall
be eligible for leasing of the part of such tract that is included within
the Gulf of Mexico OCS Region Central Planning Area, and the remainder of
such tract that lies outside of the Gulf of Mexico OCS Region Central Planning
Area may be developed and produced by the lessee of such partial tract using
extended reach or similar drilling from a location on a leased area. Further,
any area in the OCS withdrawn from leasing may be leased, and thereafter
developed and produced by the lessee using extended reach or similar drilling
from a location on a leased area located in an area available for leasing.
`(3) PETITION FOR LEASING-
`(A) IN GENERAL- The Governor of the State, upon concurrence of its legislature,
may submit to the Secretary a petition requesting that the Secretary make
available any area that is within the State's Adjacent Zone, included
within the provisions of paragraph (1), and that (i) is greater than 25
miles from any point on the coastline of a Neighboring State for the conduct
of offshore leasing, pre-leasing, and related activities with respect
to natural gas leasing; or (ii) is greater than 50 miles from any point
on the coastline of a Neighboring State for the conduct of offshore leasing,
pre-leasing, and related activities with respect to oil and gas leasing.
The Adjacent State may also petition for leasing any other area within
its Adjacent Zone if leasing is allowed in the similar area of the Adjacent
Zone of the applicable Neighboring State, or if not allowed, if the Neighboring
State, acting through its Governor, expresses its concurrence with the
petition. The Secretary shall only consider such a petition upon making
a finding that leasing is allowed in the similar area of the Adjacent
Zone of the applicable Neighboring State or upon receipt of the concurrence
of the Neighboring State. The date of receipt by the Secretary of such
concurrence by the Neighboring State shall constitute the date of receipt
of the petition for that area for which the concurrence applies.
`(B) LIMITATIONS ON LEASING- In its petition, a State with an Adjacent
Zone that contains leased tracts may condition new leasing for oil and
gas, or natural gas for tracts within 25 miles of the coastline by--
`(i) requiring a net reduction in the number of production platforms;
`(ii) requiring a net increase in the average distance of production
platforms from the coastline;
`(iii) limiting permanent surface occupancy on new leases to areas that
are more than 10 miles from the coastline;
`(iv) limiting some tracts to being produced from shore or from platforms
located on other tracts; or
`(v) other conditions that the Adjacent State may deem appropriate as
long as the Secretary does not determine that production is made economically
or technically impracticable or otherwise impossible.
`(C) ACTION BY SECRETARY- Not later than 90 days after receipt of a petition
under subparagraph (A), the Secretary shall approve the petition, unless
the Secretary determines that leasing the area would probably cause serious
harm or damage to the marine resources of the State's Adjacent Zone. Prior
to approving the petition, the Secretary shall complete an environmental
assessment that documents the anticipated environmental effects of leasing
in the area included within the scope of the petition.
`(D) FAILURE TO ACT- If the Secretary fails to approve or deny a petition
in accordance with subparagraph (C) the petition shall be considered to
be approved 90 days after receipt of the petition.
`(E) AMENDMENT OF THE 5-YEAR LEASING PROGRAM- Notwithstanding section
18, within 180 days of the approval of a petition under subparagraph (C)
or (D), after the expiration of the time limits in paragraph (1)(B), and
within 180 days after the enactment of the Deep Ocean Energy Resources
Act of 2008 for the areas made available for leasing under paragraph (2),
the Secretary shall amend the current 5-Year Outer Continental Shelf Oil
and Gas Leasing Program to include a lease sale or sales for at least
75 percent of the associated areas, unless there are, from the date of
approval, expiration of such time limits, or enactment, as applicable,
fewer than 12 months remaining in the current 5-Year Leasing Program in
which case the Secretary shall include the associated areas within lease
sales under the next 5-Year Leasing Program. For purposes of amending
the 5-Year Program in accordance with this section, further consultations
with States shall not be required. For purposes of this section, an environmental
assessment performed under the provisions of the National Environmental
Policy Act of 1969 to assess the effects of approving the petition shall
be sufficient to amend the 5-Year Leasing Program.
`(h) Option To Extend Withdrawal From Leasing Within Certain Areas of the
Outer Continental Shelf- A State, through its Governor and upon the concurrence
of its legislature, may extend for a period of time of up to 5 years for each
extension the withdrawal from leasing for all or part of any area within the
State's Adjacent Zone located more than 50 miles, but less than 100 miles,
from the coastline that is subject to subsection (g)(1)(B). A State may extend
multiple times for any particular area but not more than once per calendar
year for any particular area. A State must prepare separate extensions, with
separate votes by its legislature, for oil and gas leasing and for natural
gas leasing. An extension by a State may affect some areas to be withdrawn
from all leasing and some areas to be withdrawn only from one type of leasing.
`(i) Effect of Other Laws- Adoption by any Adjacent State of any constitutional
provision, or enactment of any State statute, that has the effect, as determined
by the Secretary, of restricting either the Governor or the Legislature, or
both, from exercising full discretion related to subsection (g) or (h), or
both, shall automatically (1) prohibit any sharing of OCS Receipts under this
Act with the Adjacent State, and its coastal political subdivisions, and (2)
prohibit the Adjacent State from exercising any authority under subsection
(h), for the duration of the restriction. The Secretary shall make the determination
of the existence of such restricting constitutional provision or State statute
within 30 days of a petition by any outer Continental Shelf lessee or coastal
State.
`(j) Prohibition on Leasing East of the Military Mission Line-
`(1) Notwithstanding any other provision of law, from and after the enactment
of the Deep Ocean Energy Resources Act of 2008, prior to January 1, 2022,
no area of the outer Continental Shelf located in the Gulf of Mexico east
of the military mission line may be offered for leasing for oil and gas
or natural gas unless a waiver is issued by the Secretary of Defense. If
such a waiver is granted, 62.5 percent of the OCS Receipts from a lease
within such area issued because of such waiver shall be paid annually to
the National Guards of all States having a point within 1000 miles of such
a lease, allocated among the States on a per capita basis using the entire
population of such States.
`(2) In this subsection, the term `military mission line' means a line located
at 86 degrees, 41 minutes West Longitude, and extending south from the coast
of Florida to the outer boundary of United States territorial waters in
the Gulf of Mexico.'.
SEC. 112. OUTER CONTINENTAL SHELF LEASING PROGRAM.
Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 1344) is amended--
(1) in subsection (a), by adding at the end of paragraph (3) the following:
`The Secretary shall, in each 5-year program, include lease sales that when
viewed as a whole propose to offer for oil and gas or natural gas leasing
at least 75 percent of the available unleased acreage within each OCS Planning
Area. Available unleased acreage is that portion of the outer Continental
Shelf that is not under lease at the time of the proposed lease sale, and
has not otherwise been made unavailable for leasing by law.';
(2) in subsection (c), by striking so much as precedes paragraph (3) and
inserting the following:
`(c)(1) During the preparation of any proposed leasing program under this
section, the Secretary shall consider and analyze leasing throughout the entire
Outer Continental Shelf without regard to any other law affecting such leasing.
During this preparation the Secretary shall invite and consider suggestions
from any interested Federal agency, including the Attorney General, in consultation
with the Federal Trade Commission, and from the Governor of any coastal State.
The Secretary may also invite or consider any suggestions from the executive
of any local government in a coastal State that have been previously submitted
to the Governor of such State, and from any other person. Further, the Secretary
shall consult with the Secretary of Defense regarding military operational
needs in the outer Continental Shelf. The Secretary shall work with the Secretary
of Defense to resolve any conflicts that might arise regarding offering any
area of the outer Continental Shelf for oil and gas or natural gas leasing.
If the Secretaries are not able to resolve all such conflicts, any unresolved
issues shall be elevated to the President for resolution.
`(2) After the consideration and analysis required by paragraph (1), including
the consideration of the suggestions received from any interested Federal
agency, the Federal Trade Commission, the Governor of any coastal State, any
local government of a coastal State, and any other person, the Secretary shall
publish in the Federal Register a proposed leasing program accompanied by
a draft environmental impact statement prepared pursuant to the National Environmental
Policy Act of 1969. After the publishing of the proposed leasing program and
during the comment period provided for on the draft environmental impact statement,
the Secretary shall submit a copy of the proposed program to the Governor
of each affected State for review and comment. The Governor may solicit comments
from those executives of local governments in the Governor's State that the
Governor, in the discretion of the Governor, determines will be affected by
the proposed program. If any comment by such Governor is received by the Secretary
at least 15 days prior to submission to the Congress pursuant to paragraph
(3) and includes a request for any modification of such proposed program,
the Secretary shall reply in writing, granting or denying such request in
whole or in part, or granting such request in such modified form as the Secretary
considers appropriate, and stating the Secretary's reasons therefor. All such
correspondence between the Secretary and the Governor of any affected State,
together with any additional information and data relating thereto, shall
accompany such proposed program when it is submitted to the Congress.'; and
(3) by adding at the end the following:
`(i) Projection of State Adjacent Zone Resources and State and Local Government
Shares of OCS Receipts- Concurrent with the publication of the scoping notice
at the beginning of the development of each 5-year outer Continental Shelf
oil and gas leasing program, or as soon thereafter as possible, the Secretary
shall--
`(1) provide to each Adjacent State a current estimate of proven and potential
oil and gas resources located within the State's Adjacent Zone; and
`(2) provide to each Adjacent State, and coastal political subdivisions
thereof, a best-efforts projection of the OCS Receipts that the Secretary
expects will be shared with each Adjacent State, and its coastal political
subdivisions, using the assumption that the unleased tracts within the State's
Adjacent Zone are fully made available for leasing, including long-term
projected OCS Receipts. In addition, the Secretary shall include a macroeconomic
estimate of the impact of such leasing on the national economy and each
State's economy, including investment, jobs, revenues, personal income,
and other categories.'.
SEC. 113. COORDINATION WITH ADJACENT STATES.
Section 19 of the Outer Continental Shelf Lands Act (43 U.S.C. 1345) is amended--
(1) in subsection (a) in the first sentence by inserting `, for any tract
located within the Adjacent State's Adjacent Zone,' after `government';
and
(2) by adding the following:
`(f)(1) No Federal agency may permit or otherwise approve, without the concurrence
of the Adjacent State, the construction of a crude oil or petroleum products
(or both) pipeline within the part of the Adjacent State's Adjacent Zone that
is withdrawn from oil and gas or natural gas leasing, except that such a pipeline
may be approved, without such Adjacent State's concurrence, to pass through
such Adjacent Zone if at least 50 percent of the production projected to be
carried by the pipeline within its first 10 years of operation is from areas
of the Adjacent State's Adjacent Zone.
`(2) No State may prohibit the construction within its Adjacent Zone or its
State waters of a natural gas pipeline that will transport natural gas produced
from the outer Continental Shelf. However, an Adjacent State may prevent a
proposed natural gas pipeline landing location if it proposes two alternate
landing locations in the Adjacent State, acceptable to the Adjacent State,
located within 50 miles on either side of the proposed landing location.'.
SEC. 114. ENVIRONMENTAL STUDIES.
Section 20(d) of the Outer Continental Shelf Lands Act (43 U.S.C. 1346) is
amended--
(1) by inserting `(1)' after `(d)'; and
(2) by adding at the end the following:
`(2) For all programs, lease sales, leases, and actions under this Act,
the following shall apply regarding the application of the National Environmental
Policy Act of 1969:
`(A) Granting or directing lease suspensions and the conduct of all preliminary
activities on outer Continental Shelf tracts, including seismic activities,
are categorically excluded from the need to prepare either an environmental
assessment or an environmental impact statement, and the Secretary shall
not be required to analyze whether any exceptions to a categorical exclusion
apply for activities conducted under the authority of this Act.
`(B) The environmental impact statement developed in support of each 5-year
oil and gas leasing program provides the environmental analysis for all
lease sales to be conducted under the program and such sales shall not
be subject to further environmental analysis.
`(C) Exploration plans shall not be subject to any requirement to prepare
an environmental impact statement, and the Secretary may find that exploration
plans are eligible for categorical exclusion due to the impacts already
being considered within an environmental impact statement or due to mitigation
measures included within the plan.
`(D) Within each OCS Planning Area, after the preparation of the first
development and production plan environmental impact statement for a leased
tract within the Area, future development and production plans for leased
tracts within the Area shall only require the preparation of an environmental
assessment unless the most recent development and production plan environmental
impact statement within the Area was finalized more than 10 years prior
to the date of the approval of the plan, in which case an environmental
impact statement shall be required.'.
SEC. 115. FEDERAL ENERGY NATURAL RESOURCES ENHANCEMENT ACT OF 2008.
(a) Findings- The Congress finds the following:
(1) Energy and minerals exploration, development, and production on Federal
onshore and offshore lands, including bio-based fuel, natural gas, minerals,
oil, geothermal, and power from wind, waves, currents, and thermal energy,
involves significant outlays of funds by Federal and State wildlife, fish,
and natural resource management agencies for environmental studies, planning,
development, monitoring, and management of wildlife, fish, air, water, and
other natural resources.
(2) State wildlife, fish, and natural resource management agencies are funded
primarily through permit and license fees paid to the States by the general
public to hunt and fish, and through Federal excise taxes on equipment used
for these activities.
(3) Funds generated from consumptive and recreational uses of wildlife,
fish, and other natural resources currently are inadequate to address the
natural resources related to energy and minerals development on Federal
onshore and offshore lands.
(4) Funds available to Federal agencies responsible for managing Federal
onshore and offshore lands and Federal-trust wildlife and fish species and
their habitats are inadequate to address the natural resources related to
energy and minerals development on Federal onshore and offshore lands.
(5) Receipts derived from sales, bonus bids, and royalties under the mineral
leasing laws of the United States are paid to the Treasury through the Minerals
Management Service of the Department of the Interior.
(6) None of the receipts derived from sales, bonus bids, and royalties under
the minerals leasing laws of the United States are paid to the Federal or
State agencies to examine, monitor, and manage wildlife, fish, air, water,
and other natural resources related to natural gas, oil, and mineral exploration
and development.
(b) Purposes- It is the purpose of this section to--
(1) authorize expenditures for the monitoring and management of wildlife
and fish, and their habitats, and air, water, and other natural resources
related to energy and minerals development on Federal onshore and offshore
lands;
(2) authorize expenditures for each fiscal year to the Secretary of the
Interior and the States; and
(3) use the appropriated funds to secure the necessary trained workforce
or contractual services to conduct environmental studies, planning, development,
monitoring, and post-development management of wildlife and fish and their
habitats and air, water, and other natural resources that may be related
to bio-based fuel, gas, mineral, oil, wind, or other energy exploration,
development, transportation, transmission, and associated activities on
Federal onshore and offshore lands, including, but not limited to--
(A) pertinent research, surveys, and environmental analyses conducted
to identify any impacts on wildlife, fish, air, water, and other natural
resources from energy and mineral exploration, development, production,
and transportation or transmission;
(B) projects to maintain, improve, or enhance wildlife and fish populations
and their habitats or air, water, or other natural resources, including
activities under the Endangered Species Act of 1973;
(C) research, surveys, environmental analyses, and projects that assist
in managing, including mitigating either onsite or offsite, or both, the
impacts of energy and mineral activities on wildlife, fish, air, water,
and other natural resources; and
(D) projects to teach young people to live off the land.
(c) Definitions- In this section:
(1) ENHANCEMENT PROGRAM- The term `Enhancement Program' means the Federal
Energy Natural Resources Enhancement Program established by this section.
(2) STATE- The term `State' means the Governor of the State.
(d) Authorization of Appropriations- There is authorized to be appropriated
to carry out the Enhancement Program $150,000,000 for fiscal year 2009 and
each fiscal year thereafter.
(e) Establishment of Federal Energy Natural Resources Enhancement Program-
(1) IN GENERAL- There is established the Federal Energy Natural Resources
Enhancement Program.
(2) PAYMENT TO SECRETARY OF THE INTERIOR- Beginning with fiscal year 2009,
and in each fiscal year thereafter, one-third of amounts appropriated for
the Enhancement Program shall be available to the Secretary of the Interior
for use for the purposes described in subsection (b)(3).
(A) IN GENERAL- Beginning with fiscal year 2009, and in each fiscal year
thereafter, two-thirds of amounts appropriated for the Enhancement Program
shall be available to the States for use for the purposes described in
(b)(3).
(B) USE OF PAYMENTS BY STATE- Each State shall use the payments made under
this paragraph only for carrying out projects and programs for the purposes
described in (b)(3).
(C) ENCOURAGE USE OF PRIVATE FUNDS BY STATE- Each State shall use the
payments made under this paragraph to leverage private funds for carrying
out projects for the purposes described in (b)(3).
(f) Limitation on Use- Amounts made available under this section may not be
used for the purchase of any interest in land.
(1) IN GENERAL- Beginning in fiscal year 2010 and continuing for each fiscal
year thereafter, the Secretary of the Interior and each State receiving
funds from the Enhancement Fund shall submit a report to the Committee on
Energy and Natural Resources of the Senate and the Committee on Resources
of the House of Representatives.
(2) REQUIRED INFORMATION- Reports submitted to the Congress by the Secretary
of the Interior and States under this subsection shall include the following
information regarding expenditures during the previous fiscal year:
(A) A summary of pertinent scientific research and surveys conducted to
identify impacts on wildlife, fish, and other natural resources from energy
and mineral developments.
(B) A summary of projects planned and completed to maintain, improve or
enhance wildlife and fish populations and their habitats or other natural
resources.
(C) A list of additional actions that assist, or would assist, in managing,
including mitigating either onsite or offsite, or both, the impacts of
energy and mineral development on wildlife, fish, and other natural resources.
(D) A summary of private (non-Federal) funds used to plan, conduct, and
complete the plans and programs identified in paragraphs (2)(A) and (2)(B).
SEC. 116. TERMINATION OF EFFECT OF LAWS PROHIBITING THE SPENDING OF APPROPRIATED
FUNDS FOR CERTAIN PURPOSES.
All provisions of existing Federal law prohibiting the spending of appropriated
funds to conduct oil and natural gas leasing and preleasing activities, or
to issue a lease to any person, for any area of the outer Continental Shelf
shall have no force or effect.
SEC. 117. OUTER CONTINENTAL SHELF INCOMPATIBLE USE.
(a) In General- No Federal agency may permit construction or operation (or
both) of any facility, or designate or maintain a restricted transportation
corridor or operating area on the Federal outer Continental Shelf or in State
waters, that will be incompatible with, as determined by the Secretary of
the Interior, oil and gas or natural gas leasing and substantially full exploration
and production of tracts that are geologically prospective for oil or natural
gas (or both).
(b) Exceptions- Subsection (a) shall not apply to any facility, transportation
corridor, or operating area the construction, operation, designation, or maintenance
of which is or will be--
(1) located in an area of the outer Continental Shelf that is unavailable
for oil and gas or natural gas leasing by operation of law;
(2) used for a military readiness activity (as defined in section 315(f)
of Public Law 107-314; 16 U.S.C. 703 note); or
(3) required in the national interest, as determined by the President.
SEC. 118. REPURCHASE OF CERTAIN LEASES.
(a) Authority To Repurchase and Cancel Certain Leases- The Secretary of the
Interior shall repurchase and cancel any Federal oil and gas, geothermal,
coal, oil shale, tar sands, or other mineral lease, whether onshore or offshore,
but not including any outer Continental Shelf oil and gas leases that were
subject to litigation in the Court of Federal Claims on January 1, 2006, if
the Secretary finds that such lease qualifies for repurchase and cancellation
under the regulations authorized by this section.
(b) Regulations- Not later than 365 days after the date of the enactment of
this Act, the Secretary shall publish a final regulation stating the conditions
under which a lease referred to in subsection (a) would qualify for repurchase
and cancellation, and the process to be followed regarding repurchase and
cancellation. Such regulation shall include, but not be limited to, the following:
(1) The Secretary shall repurchase and cancel a lease after written request
by the lessee upon a finding by the Secretary that--
(A) a request by the lessee for a required permit or other approval complied
with applicable law, except the Coastal Zone Management Act of 1972 (16
U.S.C. 1451 et seq.), and terms of the lease and such permit or other
approval was denied;
(B) a Federal agency failed to act on a request by the lessee for a required
permit, other approval, or administrative appeal within a regulatory or
statutory time-frame associated with the requested action, whether advisory
or mandatory, or if none, within 180 days; or
(C) a Federal agency attached a condition of approval, without agreement
by the lessee, to a required permit or other approval if such condition
of approval was not mandated by Federal statute or regulation in effect
on the date of lease issuance, or was not specifically allowed under the
terms of the lease.
(2) A lessee shall not be required to exhaust administrative remedies regarding
a permit request, administrative appeal, or other required request for approval
for the purposes of this section.
(3) The Secretary shall make a final agency decision on a request by a lessee
under this section within 180 days of request.
(4) Compensation to a lessee to repurchase and cancel a lease under this
section shall be the amount that a lessee would receive in a restitution
case for a material breach of contract.
(5) Compensation shall be in the form of a check or electronic transfer
from the Department of the Treasury from funds deposited into miscellaneous
receipts under the authority of the same Act that authorized the issuance
of the lease being repurchased.
(6) Failure of the Secretary to make a final agency decision on a request
by a lessee under this section within 180 days of request shall result in
a 10 percent increase in the compensation due to the lessee if the lease
is ultimately repurchased.
(c) No Prejudice- This section shall not be interpreted to prejudice any other
rights that the lessee would have in the absence of this section.
SEC. 119. OFFSITE ENVIRONMENTAL MITIGATION.
Notwithstanding any other provision of law, any person conducting activities
under the Mineral Leasing Act (30 U.S.C. 181 et seq.), the Geothermal Steam
Act (30 U.S.C. 1001 et seq.), the Mineral Leasing Act for Acquired Lands (30
U.S.C. 351 et seq.), the Weeks Act (16 U.S.C. 552 et seq.), the General Mining
Act of 1872 (30 U.S.C. 22 et seq.), the Materials Act of 1947 (30 U.S.C. 601
et seq.), or the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.),
may in satisfying any mitigation requirements associated with such activities
propose mitigation measures on a site away from the area impacted and the
Secretary of the Interior shall accept these proposed measures if the Secretary
finds that they generally achieve the purposes for which mitigation measures
appertained.
SEC. 120. MINERALS MANAGEMENT SERVICE.
The bureau known as the `Minerals Management Service' in the Department of
the Interior shall be known as the `National Ocean Resources and Royalty Service'.
SEC. 121. AUTHORITY TO USE DECOMMISSIONED OFFSHORE OIL AND GAS PLATFORMS
AND OTHER FACILITIES FOR ARTIFICIAL REEF, SCIENTIFIC RESEARCH, OR OTHER USES.
(a) Short Title- This section may be cited as the `Rigs to Reefs Act of 2008'.
(b) In General- The Outer Continental Shelf Lands Act (43 U.S.C. 1301 et seq.)
is amended by inserting after section 9 the following:
`SEC. 10. USE OF DECOMMISSIONED OFFSHORE OIL AND GAS PLATFORMS AND OTHER
FACILITIES FOR ARTIFICIAL REEF, SCIENTIFIC RESEARCH, OR OTHER USES.
`(a) In General- The Secretary shall issue regulations under which the Secretary
may authorize use of an offshore oil and gas platform or other facility that
is decommissioned from service for oil and gas purposes for an artificial
reef, scientific research, or any other use authorized under section 8(p)
or any other applicable Federal law.
`(b) Transfer Requirements- The Secretary shall not allow the transfer of
a decommissioned offshore oil and gas platform or other facility to another
person unless the Secretary is satisfied that the transferee is sufficiently
bonded, endowed, or otherwise financially able to fulfill its obligations,
including but not limited to--
`(1) ongoing maintenance of the platform or other facility;
`(2) any liability obligations that might arise;
`(3) removal of the platform or other facility if determined necessary by
the Secretary; and
`(4) any other requirements and obligations that the Secretary may deem
appropriate by regulation.
`(c) Plugging and Abandonment- The Secretary shall ensure that plugging and
abandonment of wells is accomplished at an appropriate time.
`(d) Potential To Petition To Opt-Out of Regulations- An Adjacent State acting
through a resolution of its legislature, with concurrence of its Governor,
may preliminarily petition to opt-out of the application of regulations promulgated
under this section to platforms and other facilities located in the area of
its Adjacent Zone within 12 miles of the coastline. Upon receipt of the preliminary
petition, the Secretary shall complete an environmental assessment that documents
the anticipated environmental effects of approving the petition. The Secretary
shall provide the environmental assessment to the State, which then has the
choice of no action or confirming its petition by further action of its legislature,
with the concurrence of its Governor. The Secretary is authorized to except
such area from the application of such regulations, and shall approve any
confirmed petition.
`(e) Limitation on Liability- A person that had used an offshore oil and gas
platform or other facility for oil and gas purposes and that no longer has
any ownership or control of the platform or other facility shall not be liable
under Federal law for any costs or damages arising from such platform or other
facility after the date the platform or other facility is used for any purpose
under subsection (a), unless such costs or damages arise from--
`(1) use of the platform or other facility by the person for development
or production of oil or gas; or
`(2) another act or omission of the person.
`(f) Other Leasing and Use Not Affected- This section, and the use of any
offshore oil and gas platform or other facility for any purpose under subsection
(a), shall not affect--
`(1) the authority of the Secretary to lease any area under this Act; or
`(2) any activity otherwise authorized under this Act.'.
(c) Deadline for Regulations- The Secretary of the Interior shall issue regulations
under subsection (b) by not later than 180 days after the date of the enactment
of this Act.
(d) Study and Report on Effects of Removal of Platforms- Not later than one
year after the date of enactment of this Act, the Secretary of the Interior,
in consultation with other Federal agencies as the Secretary deems advisable,
shall study and report to the Congress regarding how the removal of offshore
oil and gas platforms and other facilities from the outer Continental Shelf
would affect existing fish stocks and coral populations.
SEC. 122. REPEAL OF REQUIREMENT TO CONDUCT COMPREHENSIVE INVENTORY OF OCS
OIL AND NATURAL GAS RESOURCES.
The Energy Policy Act of 2005 (Public Law 109-58) is amended--
(1) by repealing section 357 (119 Stat. 720; 42 U.S.C. 15912); and
(2) in the table of contents in section 1(b), by striking the item relating
to such section 357.
SEC. 123. ONSHORE AND OFFSHORE MINERAL LEASE FEES.
Except as otherwise provided in this Act, the Department of the Interior is
prohibited from charging fees applicable to bidding or actions on Federal
onshore and offshore oil and gas, coal, geothermal, and other mineral leases,
including transportation of any production from such leases, if such fees
were not established in final regulations prior to the date of issuance of
the lease.
SEC. 124. OCS REGIONAL HEADQUARTERS.
Not later than July 1, 2010, the Secretary of the Interior shall establish
the headquarters for the Atlantic OCS Region, the headquarters for the Gulf
of Mexico OCS Region, and the headquarters for the Pacific OCS Region within
a State bordering the Atlantic OCS Region, a State bordering the Gulf of Mexico
OCS Region, and a State bordering the Pacific OCS Region, respectively, from
among the States bordering those Regions, that petitions by no later than
January 1, 2010, for leasing, for oil and gas or natural gas, covering at
least 40 percent of the area of its Adjacent Zone within 100 miles of the
coastline. Such Atlantic and Pacific OCS Regions headquarters shall be located
within 25 miles of the coastline and each MMS OCS regional headquarters shall
be the permanent duty station for all Minerals Management Service personnel
that on a daily basis spend on average 60 percent or more of their time in
performance of duties in support of the activities of the respective Region,
except that the Minerals Management Service may house regional inspection
staff in other locations. Each OCS Region shall each be led by a Regional
Director who shall be an employee within the Senior Executive Service.
SEC. 125. LEASES FOR AREAS LOCATED WITHIN 100 MILES OF CALIFORNIA OR FLORIDA.
(a) Authorization To Cancel and Exchange Certain Existing Oil and Gas Leases;
Prohibition on Submittal of Exploration Plans for Certain Leases Prior to
June 30, 2012-
(1) AUTHORITY- Within 2 years after the date of enactment of this Act, the
lessee of an existing oil and gas lease for an area located completely within
100 miles of the coastline within the California or Florida Adjacent Zones
shall have the option, without compensation, of exchanging such lease for
a new oil and gas lease having a primary term of 5 years. For the area subject
to the new lease, the lessee may select any unleased tract on the outer
Continental Shelf that is in an area available for leasing. Further, with
the permission of the relevant Governor, such a lessee may convert its existing
oil and gas lease into a natural gas lease having a primary term of 5 years
and covering the same area as the existing lease or another area within
the same State's Adjacent Zone within 100 miles of the coastline.
(2) ADMINISTRATIVE PROCESS- The Secretary of the Interior shall establish
a reasonable administrative process to implement paragraph (1). Exchanges
and conversions under subsection (a), including the issuance of new leases,
shall not be considered to be major Federal actions for purposes of the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.). Further,
such actions conducted in accordance with this section are deemed to be
in compliance all provisions of the Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.).
(3) OPERATING RESTRICTIONS- A new lease issued in exchange for an existing
lease under this section shall be subject to such national defense operating
stipulations on the OCS tract covered by the new lease as may be applicable
upon issuance.
(4) PRIORITY- The Secretary shall give priority in the lease exchange process
based on the amount of the original bonus bid paid for the issuance of each
lease to be exchanged. The Secretary shall allow leases covering partial
tracts to be exchanged for leases covering full tracts conditioned upon
payment of additional bonus bids on a per-acre basis as determined by the
average per acre of the original bonus bid per acre for the partial tract
being exchanged.
(5) EXPLORATION PLANS- Any exploration plan submitted to the Secretary of
the Interior after the date of the enactment of this Act and before July
1, 2012, for an oil and gas lease for an area wholly within 100 miles of
the coastline within the California Adjacent Zone or Florida Adjacent Zone
shall not be treated as received by the Secretary until the earlier of July
1, 2012, or the date on which a petition by the Adjacent State for oil and
gas leasing covering the area within which is located the area subject to
the oil and gas lease was approved.
(b) Further Lease Cancellation and Exchange Provisions-
(1) CANCELLATION OF LEASE- As part of the lease exchange process under this
section, the Secretary shall cancel a lease that is exchanged under this
section.
(2) CONSENT OF LESSEES- All lessees holding an interest in a lease must
consent to cancellation of their leasehold interests in order for the lease
to be cancelled and exchanged under this section.
(3) WAIVER OF RIGHTS- As a prerequisite to the exchange of a lease under
this section, the lessee must waive any rights to bring any litigation against
the United States related to the transaction.
(4) PLUGGING AND ABANDONMENT- The plugging and abandonment requirements
for any wells located on any lease to be cancelled and exchanged under this
section must be complied with by the lessees prior to the cancellation and
exchange.
(c) Area Partially Within 100 Miles of Florida- An existing oil and gas lease
for an area located partially within 100 miles of the coastline within the
Florida Adjacent Zone may only be developed and produced using wells drilled
from well-head locations at least 100 miles from the coastline to any bottom-hole
location on the area of the lease. This subsection shall not apply if Florida
has petitioned for leasing closer to the coastline than 100 miles.
(d) Existing Oil and Gas Lease Defined- In this section the term `existing
oil and gas lease' means an oil and gas lease in effect on the date of the
enactment of this Act.
SEC. 126. COASTAL IMPACT ASSISTANCE.
Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C. 1356a) is repealed.
SEC. 127. SENSE OF THE CONGRESS TO BUY AND BUILD AMERICAN.
(a) Buy and Build American- It is the intention of the Congress that this
Act, among other things, result in a healthy and growing American industrial,
manufacturing, transportation, and service sector employing the vast talents
of America's workforce to assist in the development of affordable energy from
the Outer Continental Shelf. Moreover, the Congress intends to monitor the
deployment of personnel and material in the Outer Continental Shelf to encourage
the development of American technology and manufacturing to enable United
States workers to benefit from this Act by good jobs and careers, as well
as the establishment of important industrial facilities to support expanded
access to American resources.
(b) Safeguard for Extraordinary Ability- Section 30(a) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1356(a)) is amended in the matter preceding paragraph
(1) by striking `regulations which' and inserting `regulations that shall
be supplemental and complimentary with and under no circumstances a substitution
for the provisions of the Constitution and laws of the United States extended
to the subsoil and seabed of the outer Continental Shelf pursuant to section
4(a)(1) of this Act, except insofar as such laws would otherwise apply to
individuals who have extraordinary ability in the sciences, arts, education,
or business, which has been demonstrated by sustained national or international
acclaim, and that'.
SEC. 128. REPEAL OF THE GULF OF MEXICO ENERGY SECURITY ACT OF 2006.
The Gulf of Mexico Energy Security Act of 2006 is repealed effective October
1, 2008.
SEC. 129. REMOVAL OF ADDITIONAL FEE FOR NEW APPLICATIONS FOR PERMITS TO
DRILL.
The second undesignated paragraph of the matter under the heading `MANAGEMENT
OF LANDS AND RESOURCES' under the heading `Bureau of Land Management' of title
I of the Department of the Interior, Environment, and Related Agencies Appropriations
Act, 2008 (Public Law 110-161; 121 Stat. 2098) is amended by striking `to
be reduced' and all that follows through `each new application,'.
SEC. 130. CREDIT FOR PRODUCING FUEL FROM NONCONVENTIONAL SOURCES TO APPLY
TO GAS PRODUCED ONSHORE FROM FORMATIONS MORE THAN 15,000 FEET DEEP.
(a) In General- Subparagraph (B) of section 45K(c)(1) of the Internal Revenue
Code of 1986 is amended by striking `or' at the end of clause (i), by striking
`and' at the end of clause (ii) and inserting `or', and by inserting after
clause (ii) the following new clause:
`(iii) an onshore well from a formation more than 15,000 feet deep,
and'.
(b) Eligible Deep Gas Wells- Section 45K of such Code is amended by adding
at the end the following new subsection:
`(h) Eligible Deep Gas Wells- In the case of a well producing qualified fuel
described in subsection (c)(1)(B)(iii)--
`(1) for purposes of subsection (e)(1)(A), such well shall be treated as
drilled before January 1, 1993, if such well is drilled after the date of
the enactment of this subsection, and
`(2) subsection (e)(2) shall not apply.'.
(c) Effective Date- The amendments made by this section shall apply to taxable
years ending after the date of the enactment of this Act.
SEC. 131. TAX CREDIT FOR CARBON DIOXIDE CAPTURED FROM INDUSTRIAL SOURCES
AND USED IN ENHANCED OIL AND NATURAL GAS RECOVERY.
(a) In General- Subpart D of part IV of subchapter A of chapter 1 of the Internal
Revenue Code of 1986 (relating to business credits) is amended by adding at
the end the following new section:
`SEC. 45P. CREDIT FOR CARBON DIOXIDE CAPTURED FROM INDUSTRIAL SOURCES AND
USED AS A TERTIARY INJECTANT IN ENHANCED OIL AND NATURAL GAS RECOVERY.
`(a) General Rule- For purposes of section 38, the captured carbon dioxide
tertiary injectant credit for any taxable year is an amount equal to the product
of--
`(1) the credit amount, and
`(2) the qualified carbon dioxide captured from industrial sources and used
as a tertiary injectant in qualified enhanced oil and natural gas recovery
which is attributable to the taxpayer.
`(b) Credit Amount- For purposes of this section--
`(1) IN GENERAL- The credit amount is $0.75 per 1,000 standard cubic feet.
`(2) INFLATION ADJUSTMENT- In the case of any taxable year beginning in
a calendar year after 2007, there shall be substituted for the $0.75 amount
under paragraph (1) an amount equal to the product of--
`(A) $0.75, multiplied by
`(B) the inflation adjustment factor for such calendar year determined
under section 43(b)(3)(B) for such calendar year, determined by substituting
`2006' for `1990'.
`(c) Qualified Carbon Dioxide- For purposes of this section--
`(1) IN GENERAL- The term `qualified carbon dioxide' means carbon dioxide
captured from an anthropogenic source that--
`(A) would otherwise be released into the atmosphere as industrial emission
of greenhouse gas,
`(B) is measurable at the source of capture,
`(C) is compressed, treated, and transported via pipeline,
`(D) is sold as a tertiary injectant in qualified enhanced oil and natural
gas recovery, and
`(E) is permanently sequestered in geological formations as a result of
the enhanced oil and natural gas recovery process.
`(2) ANTHROPOGENIC SOURCE- An anthropogenic source of carbon dioxide is
an industrial source, including any of the following types of plants, and
facilities related to such plant--
`(A) a coal and natural gas fired electrical generating power station,
`(B) a natural gas processing and treating plant,
`(D) a fertilizer plant, and
`(A) QUALIFIED ENHANCED OIL AND NATURAL GAS RECOVERY- The term `qualified
enhanced oil and natural gas recovery' has the meaning given such term
by section 43(c)(2).
`(B) TERTIARY INJECTANT- The term `tertiary injectant' has the same meaning
as when used within section 193(b)(1).
`(d) Other Definitions and Special Rules- For purposes of this section--
`(1) ONLY CARBON DIOXIDE CAPTURED WITHIN THE UNITED STATES TAKEN INTO ACCOUNT-
Sales shall be taken into account under this section only with respect to
qualified carbon dioxide of which is within--
`(A) the United States (within the meaning of section 638(1)), or
`(B) a possession of the United States (within the meaning of section
638(2)).
`(2) RECYCLED CARBON DIOXIDE- The term `qualified carbon dioxide' includes
the initial deposit of captured carbon dioxide used as a tertiary injectant.
Such term does not include carbon dioxide that is re-captured, recycled,
and re-injected as part of the enhanced oil and natural gas recovery process.
`(3) CREDIT ATTRIBUTABLE TO TAXPAYER- Any credit under this section shall
be attributable to the person that captures, treats, compresses, transports
and sells the carbon dioxide for use as a tertiary injectant in enhanced
oil and natural gas recovery, except to the extent provided in regulations
prescribed by the Secretary.'.
(b) Conforming Amendment- Section 38(b) of such Code (relating to general
business credit), as amended by section 302, is amended by striking `plus'
at the end of paragraph (31), by striking the period at the end of paragraph
(32) and inserting `, plus', and by adding at the end of following new paragraph:
`(33) the captured carbon dioxide tertiary injectant credit determined under
section 45P(a).'.
(c) Clerical Amendment- The table of sections for subpart B of part IV of
subchapter A of chapter 1 of such Code (relating to other credits) is amended
by adding at the end the following new section:
`Sec. 45P. Credit for carbon dioxide captured from industrial sources and
used as a tertiary injectant in enhanced oil and natural gas recovery.'.
(d) Effective Date- The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.
TITLE II--OIL AND GAS LEASING PROGRAM FOR COASTAL PLAIN OF ALASKA
SEC. 201. SHORT TITLE.
This title may be cited as the `American Energy Independence and Price Reduction
Act'.
SEC. 202. DEFINITIONS.
(1) COASTAL PLAIN- The term `Coastal Plain' means that area described in
appendix I to part 37 of title 50, Code of Federal Regulations.
(2) SECRETARY- The term `Secretary', except as otherwise provided, means
the Secretary of the Interior or the Secretary's designee.
SEC. 203. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.
(a) In General- The Secretary shall take such actions as are necessary--
(1) to establish and implement, in accordance with this Act and acting through
the Director of the Bureau of Land Management in consultation with the Director
of the United States Fish and Wildlife Service, a competitive oil and gas
leasing program that will result in an environmentally sound program for
the exploration, development, and production of the oil and gas resources
of the Coastal Plain; and
(2) to administer the provisions of this Act through regulations, lease
terms, conditions, restrictions, prohibitions, stipulations, and other provisions
that ensure the oil and gas exploration, development, and production activities
on the Coastal Plain will result in no significant adverse effect on fish
and wildlife, their habitat, subsistence resources, and the environment,
including, in furtherance of this goal, by requiring the application of
the best commercially available technology for oil and gas exploration,
development, and production to all exploration, development, and production
operations under this Act in a manner that ensures the receipt of fair market
value by the public for the mineral resources to be leased.
(1) REPEAL- Section 1003 of the Alaska National Interest Lands Conservation
Act of 1980 (16 U.S.C. 3143) is repealed.
(2) CONFORMING AMENDMENT- The table of contents in section 1 of such Act
is amended by striking the item relating to section 1003.
(c) Compliance With Requirements Under Certain Other Laws-
(1) COMPATIBILITY- For purposes of the National Wildlife Refuge System Administration
Act of 1966 (16 U.S.C. 668dd et seq.), the oil and gas leasing program and
activities authorized by this section in the Coastal Plain are deemed to
be compatible with the purposes for which the Arctic National Wildlife Refuge
was established, and no further findings or decisions are required to implement
this determination.
(2) ADEQUACY OF THE DEPARTMENT OF THE INTERIOR'S LEGISLATIVE ENVIRONMENTAL
IMPACT STATEMENT- The `Final Legislative Environmental Impact Statement'
(April 1987) on the Coastal Plain prepared pursuant to section 1002 of the
Alaska National Interest Lands Conservation Act of 1980 (16 U.S.C. 3142)
and section 102(2)(C) of the National Environmental Policy Act of 1969 (42
U.S.C. 4332(2)(C)) is deemed to satisfy the requirements under the National
Environmental Policy Act of 1969 that apply with respect to prelease activities,
including actions authorized to be taken by the Secretary to develop and
promulgate the regulations for the establishment of a leasing program authorized
by this Act before the conduct of the first lease sale.
(3) COMPLIANCE WITH NEPA FOR OTHER ACTIONS- Before conducting the first
lease sale under this Act, the Secretary shall prepare an environmental
impact statement under the National Environmental Policy Act of 1969 with
respect to the actions authorized by this Act that are not referred to in
paragraph (2). Notwithstanding any other law, the Secretary is not required
to identify nonleasing alternative courses of action or to analyze the environmental
effects of such courses of action. The Secretary shall only identify a preferred
action for such leasing and a single leasing alternative, and analyze the
environmental effects and potential mitigation measures for those two alternatives.
The identification of the preferred action and related analysis for the
first lease sale under this Act shall be completed within 18 months after
the date of enactment of this Act. The Secretary shall only consider public
comments that specifically address the Secretary's preferred action and
that are filed within 20 days after publication of an environmental analysis.
Notwithstanding any other law, compliance with this paragraph is deemed
to satisfy all requirements for the analysis and consideration of the environmental
effects of proposed leasing under this Act.
(d) Relationship to State and Local Authority- Nothing in this Act shall be
considered to expand or limit State and local regulatory authority.
(1) IN GENERAL- The Secretary, after consultation with the State of Alaska,
the city of Kaktovik, and the North Slope Borough, may designate up to a
total of 45,000 acres of the Coastal Plain as a Special Area if the Secretary
determines that the Special Area is of such unique character and interest
so as to require special management and regulatory protection. The Secretary
shall designate as such a Special Area the Sadlerochit Spring area, comprising
approximately 4,000 acres.
(2) MANAGEMENT- Each such Special Area shall be managed so as to protect
and preserve the area's unique and diverse character including its fish,
wildlife, and subsistence resource values.
(3) EXCLUSION FROM LEASING OR SURFACE OCCUPANCY- The Secretary may exclude
any Special Area from leasing. If the Secretary leases a Special Area, or
any part thereof, for purposes of oil and gas exploration, development,
production, and related activities, there shall be no surface occupancy
of the lands comprising the Special Area.
(4) DIRECTIONAL DRILLING- Notwithstanding the other provisions of this subsection,
the Secretary may lease all or a portion of a Special Area under terms that
permit the use of horizontal drilling technology from sites on leases located
outside the Special Area.
(f) Limitation on Closed Areas- The Secretary's sole authority to close lands
within the Coastal Plain to oil and gas leasing and to exploration, development,
and production is that set forth in this Act.
(1) IN GENERAL- The Secretary shall prescribe such regulations as may be
necessary to carry out this Act, including rules and regulations relating
to protection of the fish and wildlife, their habitat, subsistence resources,
and environment of the Coastal Plain, by no later than 15 months after the
date of enactment of this Act.
(2) REVISION OF REGULATIONS- The Secretary shall periodically review and,
if appropriate, revise the rules and regulations issued under subsection
(a) to reflect any significant biological, environmental, or engineering
data that come to the Secretary's attention.
SEC. 204. LEASE SALES.
(a) In General- Lands may be leased pursuant to this Act to any person qualified
to obtain a lease for deposits of oil and gas under the Mineral Leasing Act
(30 U.S.C. 181 et seq.).
(b) Procedures- The Secretary shall, by regulation, establish procedures for--
(1) receipt and consideration of sealed nominations for any area in the
Coastal Plain for inclusion in, or exclusion (as provided in subsection
(c)) from, a lease sale;
(2) the holding of lease sales after such nomination process; and
(3) public notice of and comment on designation of areas to be included
in, or excluded from, a lease sale.
(c) Lease Sale Bids- Bidding for leases under this Act shall be by sealed
competitive cash bonus bids.
(d) Acreage Minimum in First Sale- In the first lease sale under this Act,
the Secretary shall offer for lease those tracts the Secretary considers to
have the greatest potential for the discovery of hydrocarbons, taking into
consideration nominations received pursuant to subsection (b)(1), but in no
case less than 200,000 acres.
(e) Timing of Lease Sales- The Secretary shall--
(1) conduct the first lease sale under this Act within 22 months after the
date of the enactment of this Act;
(2) evaluate the bids in such sale and issue leases resulting from such
sale, within 90 days after the date of the completion of such sale; and
(3) conduct additional sales so long as sufficient interest in development
exists to warrant, in the Secretary's judgment, the conduct of such sales.
SEC. 205. GRANT OF LEASES BY THE SECRETARY.
(a) In General- The Secretary may grant to the highest responsible qualified
bidder in a lease sale conducted pursuant to section 4 any lands to be leased
on the Coastal Plain upon payment by the lessee of such bonus as may be accepted
by the Secretary.
(b) Subsequent Transfers- No lease issued under this Act may be sold, exchanged,
assigned, sublet, or otherwise transferred except with the approval of the
Secretary. Prior to any such approval the Secretary shall consult with, and
give due consideration to the views of, the Attorney General.
SEC. 206. LEASE TERMS AND CONDITIONS.
(a) In General- An oil or gas lease issued pursuant to this Act shall--
(1) provide for the payment of a royalty of not less than 12 1/2 percent
in amount or value of the production removed or sold from the lease, as
determined by the Secretary under the regulations applicable to other Federal
oil and gas leases;
(2) provide that the Secretary may close, on a seasonal basis, portions
of the Coastal Plain to exploratory drilling activities as necessary to
protect caribou calving areas and other species of fish and wildlife;
(3) require that the lessee of lands within the Coastal Plain shall be fully
responsible and liable for the reclamation of lands within the Coastal Plain
and any other Federal lands that are adversely affected in connection with
exploration, development, production, or transportation activities conducted
under the lease and within the Coastal Plain by the lessee or by any of
the subcontractors or agents of the lessee;
(4) provide that the lessee may not delegate or convey, by contract or otherwise,
the reclamation responsibility and liability to another person without the
express written approval of the Secretary;
(5) provide that the standard of reclamation for lands required to be reclaimed
under this Act shall be, as nearly as practicable, a condition capable of
supporting the uses which the lands were capable of supporting prior to
any exploration, development, or production activities, or upon application
by the lessee, to a higher or better use as approved by the Secretary;
(6) contain terms and conditions relating to protection of fish and wildlife,
their habitat, subsistence resources, and the environment as required pursuant
to section 3(a)(2);
(7) provide that the lessee, its agents, and its contractors use best efforts
to provide a fair share, as determined by the level of obligation previously
agreed to in the 1974 agreement implementing section 29 of the Federal Agreement
and Grant of Right of Way for the Operation of the Trans-Alaska Pipeline,
of employment and contracting for Alaska Natives and Alaska Native Corporations
from throughout the State;
(8) prohibit the export of oil produced under the lease; and
(9) contain such other provisions as the Secretary determines necessary
to ensure compliance with the provisions of this Act and the regulations
issued under this Act.
(b) Project Labor Agreements- The Secretary, as a term and condition of each
lease under this Act and in recognizing the Government's proprietary interest
in labor stability and in the ability of construction labor and management
to meet the particular needs and conditions of projects to be developed under
the leases issued pursuant to this Act and the special concerns of the parties
to such leases, shall require that the lessee and its agents and contractors
negotiate to obtain a project labor agreement for the employment of laborers
and mechanics on production, maintenance, and construction under the lease.
SEC. 207. COASTAL PLAIN ENVIRONMENTAL PROTECTION.
(a) No Significant Adverse Effect Standard To Govern Authorized Coastal Plain
Activities- The Secretary shall, consistent with the requirements of section
3, administer the provisions of this Act through regulations, lease terms,
conditions, restrictions, prohibitions, stipulations, and other provisions
that--
(1) ensure the oil and gas exploration, development, and production activities
on the Coastal Plain will result in no significant adverse effect on fish
and wildlife, their habitat, and the environment;
(2) require the application of the best commercially available technology
for oil and gas exploration, development, and production on all new exploration,
development, and production operations; and
(3) ensure that the maximum amount of surface acreage covered by production
and support facilities, including airstrips and any areas covered by gravel
berms or piers for support of pipelines, does not exceed 2,000 acres on
the Coastal Plain.
(b) Site-Specific Assessment and Mitigation- The Secretary shall also require,
with respect to any proposed drilling and related activities, that--
(1) a site-specific analysis be made of the probable effects, if any, that
the drilling or related activities will have on fish and wildlife, their
habitat, subsistence resources, and the environment;
(2) a plan be implemented to avoid, minimize, and mitigate (in that order
and to the extent practicable) any significant adverse effect identified
under paragraph (1); and
(3) the development of the plan shall occur after consultation with the
agency or agencies having jurisdiction over matters mitigated by the plan.
(c) Regulations To Protect Coastal Plain Fish and Wildlife Resources, Subsistence
Users, and the Environment- Before implementing the leasing program authorized
by this Act, the Secretary shall prepare and promulgate regulations, lease
terms, conditions, restrictions, prohibitions, stipulations, and other measures
designed to ensure that the activities undertaken on the Coastal Plain under
this Act are conducted in a manner consistent with the purposes and environmental
requirements of this Act.
(d) Compliance With Federal and State Environmental Laws and Other Requirements-
The proposed regulations, lease terms, conditions, restrictions, prohibitions,
and stipulations for the leasing program under this Act shall require compliance
with all applicable provisions of Federal and State environmental law, and
shall also require the following:
(1) Standards at least as effective as the safety and environmental mitigation
measures set forth in items 1 through 29 at pages 167 through 169 of the
`Final Legislative Environmental Impact Statement' (April 1987) on the Coastal
Plain.
(2) Seasonal limitations on exploration, development, and related activities,
where necessary, to avoid significant adverse effects during periods of
concentrated fish and wildlife breeding, denning, nesting, spawning, and
migration.
(3) That exploration activities, except for surface geological studies,
be limited to the period between approximately November 1 and May 1 each
year and that exploration activities shall be supported, if necessary, by
ice roads, winter trails with adequate snow cover, ice pads, ice airstrips,
and air transport methods, except that such exploration activities may occur
at other times if the Secretary finds that such exploration will have no
significant adverse effect on the fish and wildlife, their habitat, and
the environment of the Coastal Plain.
(4) Design safety and construction standards for all pipelines and any access
and service roads, that--
(A) minimize, to the maximum extent possible, adverse effects upon the
passage of migratory species such as caribou; and
(B) minimize adverse effects upon the flow of surface water by requiring
the use of culverts, bridges, and other structural devices.
(5) Prohibitions on general public access and use on all pipeline access
and service roads.
(6) Stringent reclamation and rehabilitation requirements, consistent with
the standards set forth in this Act, requiring the removal from the Coastal
Plain of all oil and gas development and production facilities, structures,
and equipment upon completion of oil and gas production operations, except
that the Secretary may exempt from the requirements of this paragraph those
facilities, structures, or equipment that the Secretary determines would
assist in the management of the Arctic National Wildlife Refuge and that
are donated to the United States for that purpose.
(7) Appropriate prohibitions or restrictions on access by all modes of transportation.
(8) Appropriate prohibitions or restrictions on sand and gravel extraction.
(9) Consolidation of facility siting.
(10) Appropriate prohibitions or restrictions on use of explosives.
(11) Avoidance, to the extent practicable, of springs, streams, and river
system; the protection of natural surface drainage patterns, wetlands, and
riparian habitats; and the regulation of methods or techniques for developing
or transporting adequate supplies of water for exploratory drilling.
(12) Avoidance or minimization of air traffic-related disturbance to fish
and wildlife.
(13) Treatment and disposal of hazardous and toxic wastes, solid wastes,
reserve pit fluids, drilling muds and cuttings, and domestic wastewater,
including an annual waste management report, a hazardous materials tracking
system, and a prohibition on chlorinated solvents, in accordance with applicable
Federal and State environmental law.
(14) Fuel storage and oil spill contingency planning.
(15) Research, monitoring, and reporting requirements.
(16) Field crew environmental briefings.
(17) Avoidance of significant adverse effects upon subsistence hunting,
fishing, and trapping by subsistence users.
(18) Compliance with applicable air and water quality standards.
(19) Appropriate seasonal and safety zone designations around well sites,
within which subsistence hunting and trapping shall be limited.
(20) Reasonable stipulations for protection of cultural and archeological
resources.
(21) All other protective environmental stipulations, restrictions, terms,
and conditions deemed necessary by the Secretary.
(e) Considerations- In preparing and promulgating regulations, lease terms,
conditions, restrictions, prohibitions, and stipulations under this section,
the Secretary shall consider the following:
(1) The stipulations and conditions that govern the National Petroleum Reserve-Alaska
leasing program, as set forth in the 1999 Northeast National Petroleum Reserve-Alaska
Final Integrated Activity Plan/Environmental Impact Statement.
(2) The environmental protection standards that governed the initial Coastal
Plain seismic exploration program under parts 37.31 to 37.33 of title 50,
Code of Federal Regulations.
(3) The land use stipulations for exploratory drilling on the KIC-ASRC private
lands that are set forth in Appendix 2 of the August 9, 1983, agreement
between Arctic Slope Regional Corporation and the United States.
(f) Facility Consolidation Planning-
(1) IN GENERAL- The Secretary shall, after providing for public notice and
comment, prepare and update periodically a plan to govern, guide, and direct
the siting and construction of facilities for the exploration, development,
production, and transportation of Coastal Plain oil and gas resources.
(2) OBJECTIVES- The plan shall have the following objectives:
(A) Avoiding unnecessary duplication of facilities and activities.
(B) Encouraging consolidation of common facilities and activities.
(C) Locating or confining facilities and activities to areas that will
minimize impact on fish and wildlife, their habitat, and the environment.
(D) Utilizing existing facilities wherever practicable.
(E) Enhancing compatibility between wildlife values and development activities.
(g) Access to Public Lands- The Secretary shall--
(1) manage public lands in the Coastal Plain subject to subsections (a)
and (b) of section 811 of the Alaska National Interest Lands Conservation
Act (16 U.S.C. 3121); and
(2) ensure that local residents shall have reasonable access to public lands
in the Coastal Plain for traditional uses.
SEC. 208. EXPEDITED JUDICIAL REVIEW.
(1) DEADLINE- Subject to paragraph (2), any complaint seeking judicial review
of any provision of this Act or any action of the Secretary under this Act
shall be filed--
(A) except as provided in subparagraph (B), within the 90-day period beginning
on the date of the action being challenged; or
(B) in the case of a complaint based solely on grounds arising after such
period, within 90 days after the complainant knew or reasonably should
have known of the grounds for the complaint.
(2) VENUE- Any complaint seeking judicial review of any provision of this
Act or any action of the Secretary under this Act may be filed only in the
United States Court of Appeals for the District of Columbia.
(3) LIMITATION ON SCOPE OF CERTAIN REVIEW- Judicial review of a Secretarial
decision to conduct a lease sale under this Act, including the environmental
analysis thereof, shall be limited to whether the Secretary has complied
with the terms of this Act and shall be based upon the administrative record
of that decision. The Secretary's identification of a preferred course of
action to enable leasing to proceed and the Secretary's analysis of environmental
effects under this Act shall be presumed to be correct unless shown otherwise
by clear and convincing evidence to the contrary.
(b) Limitation on Other Review- Actions of the Secretary with respect to which
review could have been obtained under this section shall not be subject to
judicial review in any civil or criminal proceeding for enforcement.
SEC. 209. FEDERAL AND STATE DISTRIBUTION OF REVENUES.
(a) In General- Notwithstanding any other provision of law, of the amount
of adjusted bonus, rental, and royalty revenues from Federal oil and gas leasing
and operations authorized under this Act--
(1) 50 percent shall be paid to the State of Alaska; and
(2) except as provided in section 12(d), the balance shall be transferred
to the American Energy Trust Fund established by this Act.
(b) Payments to Alaska- Payments to the State of Alaska under this section
shall be made semiannually.
SEC. 210. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.
(a) In General- The Secretary shall issue rights-of-way and easements across
the Coastal Plain for the transportation of oil and gas--
(1) except as provided in paragraph (2), under section 28 of the Mineral
Leasing Act (30 U.S.C. 185), without regard to title XI of the Alaska National
Interest Lands Conservation Act (30 U.S.C. 3161 et seq.); and
(2) under title XI of the Alaska National Interest Lands Conservation Act
(30 U.S.C. 3161 et seq.), for access authorized by sections 1110 and 1111
of that Act (16 U.S.C. 3170 and 3171).
(b) Terms and Conditions- The Secretary shall include in any right-of-way
or easement issued under subsection (a) such terms and conditions as may be
necessary to ensure that transportation of oil and gas does not result in
a significant adverse effect on the fish and wildlife, subsistence resources,
their habitat, and the environment of the Coastal Plain, including requirements
that facilities be sited or designed so as to avoid unnecessary duplication
of roads and pipelines.
(c) Regulations- The Secretary shall include in regulations under section
3(g) provisions granting rights-of-way and easements described in subsection
(a) of this section.
SEC. 211. CONVEYANCE.
In order to maximize Federal revenues by removing clouds on title to lands
and clarifying land ownership patterns within the Coastal Plain, the Secretary,
notwithstanding the provisions of section 1302(h)(2) of the Alaska National
Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), shall convey--
(1) to the Kaktovik Inupiat Corporation the surface estate of the lands
described in paragraph 1 of Public Land Order 6959, to the extent necessary
to fulfill the Corporation's entitlement under sections 12 and 14 of the
Alaska Native Claims Settlement Act (43 U.S.C. 1611 and 1613) in accordance
with the terms and conditions of the Agreement between the Department of
the Interior, the United States Fish and Wildlife Service, the Bureau of
Land Management, and the Kaktovik Inupiat Corporation effective January
22, 1993; and
(2) to the Arctic Slope Regional Corporation the remaining subsurface estate
to which it is entitled pursuant to the August 9, 1983, agreement between
the Arctic Slope Regional Corporation and the United States of America.
SEC. 212. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.
(a) Financial Assistance Authorized-
(1) IN GENERAL- The Secretary may use amounts available from the Coastal
Plain Local Government Impact Aid Assistance Fund established by subsection
(d) to provide timely financial assistance to entities that are eligible
under paragraph (2) and that are directly impacted by the exploration for
or production of oil and gas on the Coastal Plain under this Act.
(2) ELIGIBLE ENTITIES- The North Slope Borough, the City of Kaktovik, and
any other borough, municipal subdivision, village, or other community in
the State of Alaska that is directly impacted by exploration for, or the
production of, oil or gas on the Coastal Plain under this Act, as determined
by the Secretary, shall be eligible for financial assistance under this
section.
(b) Use of Assistance- Financial assistance under this section may be used
only for--
(1) planning for mitigation of the potential effects of oil and gas exploration
and development on environmental, social, cultural, recreational, and subsistence
values;
(2) implementing mitigation plans and maintaining mitigation projects;
(3) developing, carrying out, and maintaining projects and programs that
provide new or expanded public facilities and services to address needs
and problems associated with such effects, including fire-fighting, police,
water, waste treatment, medivac, and medical services; and
(4) establishment of a coordination office, by the North Slope Borough,
in the City of Kaktovik, which shall--
(A) coordinate with and advise developers on local conditions, impact,
and history of the areas utilized for development; and
(B) provide to the Committee on Resources of the House of Representatives
and the Committee on Energy and Natural Resources of the Senate an annual
report on the status of coordination between developers and the communities
affected by development.
(1) IN GENERAL- Any community that is eligible for assistance under this
section may submit an application for such assistance to the Secretary,
in such form and under such procedures as the Secretary may prescribe by
regulation.
(2) NORTH SLOPE BOROUGH COMMUNITIES- A community located in the North Slope
Borough may apply for assistance under this section either directly to the
Secretary or through the North Slope Borough.
(3) APPLICATION ASSISTANCE- The Secretary shall work closely with and assist
the North Slope Borough and other communities eligible for assistance under
this section in developing and submitting applications for assistance under
this section.
(d) Establishment of Fund-
(1) IN GENERAL- There is established in the Treasury the Coastal Plain Local
Government Impact Aid Assistance Fund.
(2) USE- Amounts in the fund may be used only for providing financial assistance
under this section.
(3) DEPOSITS- Subject to paragraph (4), there shall be deposited into the
fund amounts received by the United States as revenues derived from rents,
bonuses, and royalties from Federal leases and lease sales authorized under
this Act.
(4) LIMITATION ON DEPOSITS- The total amount in the fund may not exceed
$11,000,000.
(5) INVESTMENT OF BALANCES- The Secretary of the Treasury shall invest amounts
in the fund in interest bearing government securities.
(e) Authorization of Appropriations- To provide financial assistance under
this section there is authorized to be appropriated to the Secretary from
the Coastal Plain Local Government Impact Aid Assistance Fund $5,000,000 for
each fiscal year.
TITLE III--OIL SHALE AND TAR SANDS
SEC. 301. SHORT TITLE.
This title may be cited as the `Oil Shale Opportunity Act of 2008'.
SEC. 302. REPEAL OF LIMITATION ON USE OF FUNDS FOR REGULATIONS REGARDING
A COMMERCIAL LEASING PROGRAM FOR OIL SHALE RESOURCES ON PUBLIC LANDS.
Section 433 of the Department of the Interior, Environment, and Related Agencies
Appropriations Act, 2008 (Division F of Public Law 110-161; 121 Stat. 2152)
is repealed.
SEC. 303. PERMANENT FUNDING FOR PILT AND REFUGE REVENUE SHARING.
(a) Payments in Lieu of Taxes- Section 6906 of title 31, United States Code,
is amended to read as follows:
`SEC. 6906. AUTHORIZATION OF APPROPRIATIONS.
`There is authorized to be appropriated out of the American Energy Trust Fund
created by this Act such sums as may be necessary to the Secretary of the
Interior to carry out this chapter. Beginning in fiscal year 2013 and each
fiscal year thereafter, amounts authorized under this chapter shall be made
available to the Secretary of the Interior without further appropriation,
for obligation or expenditure in accordance with this chapter.'.
(b) Refuge Revenue Sharing- Section 401(d) of the Act of June 15, 1935 (16
U.S.C. 715s(d)), relating to refuge revenue sharing, is amended by adding
at the end the following: `Beginning in fiscal year 2012 and each fiscal year
thereafter, such amounts shall be made available to the Secretary without
further appropriation, out of the American Energy Trust Fund created by this
Act, as may be necessary to carry out this chapter, for obligation or expenditure
in accordance with this section.'.
SEC. 304. REAUTHORIZATION OF THE SECURE RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION
ACT OF 2000.
The Secure Rural Schools and Community Self-Determination Act of 2000 (Public
Law 106-393; 16 U.S.C. 500 note) is amended--
(1) in sections 208 and 303, by striking `2013' both places it appears and
inserting `2018'; and
(2) in sections 101(a), 102(b)(2), 103(b)(1), 203(a)(1), 207(a), 208, 303,
and 401, by striking `2006' each place it appears and inserting `2018'.
SEC. 305. OIL SHALE AND TAR SANDS AMENDMENTS.
(a) Repeal of Requirement to Establish Payments- Section 369(o) of the Energy
Policy Act of 2005 (Public Law 109-58; 119 Stat. 728; 42 U.S.C. 15927) is
repealed.
(b) Treatment of Revenues- Section 21 of the Mineral Leasing Act (30 U.S.C.
241) is amended by adding at the end the following:
`(1) IN GENERAL- Notwithstanding the provisions of section 35, all revenues
received from and under an oil shale or tar sands lease shall be disposed
of as provided in this subsection.
`(2) ROYALTY RATES FOR COMMERCIAL LEASES-
`(A) ROYALTY RATES- The Secretary shall model the royalty schedule for
oil shale and tar sands leases based on the royalty program currently
in effect for the production of synthetic crude oil from oil sands in
the Province of Alberta, Canada.
`(B) REDUCTION- The Secretary shall reduce any royalty otherwise required
to be paid under subparagraph (A) under any oil shale or tar sands lease
on a sliding scale based upon market price, with a 10 percent reduction
if the average futures price of NYMEX Light Sweet Crude, or a similar
index, drops, for the previous quarter year, below $50 (in January 1,
2008, dollars), and an 80 percent reduction if the average price drops
below $30 (in January 1, 2008, dollars) for the quarter previous to the
one in which the production is sold.
`(3) DISPOSITION OF REVENUES-
`(A) DEPOSIT- The Secretary shall deposit into a separate account in the
Treasury all revenues derived from any oil shale or tar sands lease.
`(B) ALLOCATIONS TO STATES AND LOCAL POLITICAL SUBDIVISIONS- The Secretary
shall allocate 50 percent of the revenues deposited into the account established
under subparagraph (A) to the State within the boundaries of which the
leased lands are located, with a portion of that to be paid directly by
the Secretary to the State's local political subdivisions as provided
in this paragraph.
`(C) TRANSMISSION OF ALLOCATIONS-
`(i) IN GENERAL- Not later than the last business day of the month after
the month in which the revenues were received, the Secretary shall transmit--
`(I) to each State two-thirds of such State's allocations under subparagraph
(B), and in accordance with clauses (ii) and (iii) to certain county-equivalent
and municipal political subdivisions of such State a total of one-third
of such States allocations under subparagraph (B), together with all
accrued interest thereon; and
`(II) the remaining balance of such revenues shall be deposited into
the American Energy Trust Fund created by this Act.
`(ii) ALLOCATIONS TO CERTAIN COUNTY-EQUIVALENT POLITICAL SUBDIVISIONS-
The Secretary shall under clause (i)(I) make equitable allocations of
the revenues to county-equivalent political subdivisions that the Secretary
determines are closely associated with the leasing and production of
oil shale and tar sands, under a formula that the Secretary shall determine
by regulation.
`(iii) ALLOCATIONS TO MUNICIPAL POLITICAL SUBDIVISIONS- The initial
allocation to each county-equivalent political subdivision under clause
(ii) shall be further allocated to the county-equivalent political subdivision
and any municipal political subdivisions located partially or wholly
within the boundaries of the county-equivalent political subdivision
on an equitable basis under a formula that the Secretary shall determine
by regulation.
`(D) INVESTMENT OF DEPOSITS- The deposits in the Treasury account established
under this section shall be invested by the Secretary of the Treasury
in securities backed by the full faith and credit of the United States
having maturities suitable to the needs of the account and yielding the
highest reasonably available interest rates as determined by the Secretary
of the Treasury.
`(E) USE OF FUNDS- A recipient of funds under this subsection may use
the funds for any lawful purpose as determined by State law. Funds allocated
under this subsection to States and local political subdivisions may be
used as matching funds for other Federal programs without limitation.
Funds allocated to local political subdivisions under this subsection
may not be used in calculation of payments to such local political subdivisions
under programs for payments in lieu of taxes or other similar programs.
`(F) NO ACCOUNTING REQUIRED- No recipient of funds under this subsection
shall be required to account to the Federal Government for the expenditure
of such funds, except as otherwise may be required by law.
`(4) DEFINITIONS- In this subsection:
`(A) COUNTY-EQUIVALENT POLITICAL SUBDIVISION- The term `county-equivalent
political subdivision' means a political jurisdiction immediately below
the level of State government, including a county, parish, borough in
Alaska, independent municipality not part of a county, parish, or borough
in Alaska, or other equivalent subdivision of a State.
`(B) MUNICIPAL POLITICAL SUBDIVISION- The term `municipal political subdivision'
means a municipality located within and part of a county, parish, borough
in Alaska, or other equivalent subdivision of a State.'.
SEC. 306. REPEAL.
Section 526 of the Energy Independence and Security Act of 2007 (42 U.S.C.
17142) is repealed.
TITLE IV--COAL
SEC. 401. SHORT TITLE.
This title may be cited as the `Coal Liquid Fuel Act'.
SEC. 402. STANDBY LOANS FOR QUALIFYING COAL-TO-LIQUIDS PROJECTS.
Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) is amended
by adding at the end the following new subsection:
`(k) Standby Loans for Qualifying CTL Projects-
`(1) DEFINITIONS- For purposes of this subsection:
`(A) CAP PRICE- The term `cap price' means a market price specified in
the standby loan agreement above which the project is required to make
payments to the United States.
`(B) FULL TERM- The term `full term' means the full term of a standby
loan agreement, as specified in the agreement, which shall not exceed
the lesser of 30 years or 90 percent of the projected useful life of the
project (as determined by the Secretary).
`(C) MARKET PRICE- The term `market price' means the average quarterly
price of a petroleum price index specified in the standby loan agreement.
`(D) MINIMUM PRICE- The term `minimum price' means a market price specified
in the standby loan agreement below which the United States is obligated
to make disbursements to the project.
`(E) OUTPUT- The term `output' means some or all of the liquid or gaseous
transportation fuels produced from the project, as specified in the loan
agreement.
`(F) PRIMARY TERM- The term `primary term' means the initial term of a
standby loan agreement, as specified in the agreement, which shall not
exceed the lesser of 20 years or 75 percent of the projected useful life
of the project (as determined by the Secretary).
`(G) QUALIFYING CTL PROJECT- The term `qualifying CTL project' means--
`(i) a commercial-scale project that converts coal to one or more liquid
or gaseous transportation fuels; or
`(ii) not more than one project at a facility that converts petroleum
refinery waste products, including petroleum coke, into one or more
liquids or gaseous transportation fuels,
that demonstrates the capture, and sequestration or disposal or use of,
the carbon dioxide produced in the conversion process, and that, on the
basis of a carbon dioxide sequestration plan prepared by the applicant,
is certified by the Administrator of the Environmental Protection Agency,
in consultation with the Secretary, as producing fuel with life cycle
carbon dioxide emissions at or below the average life cycle carbon dioxide
emissions for the same type of fuel produced at traditional petroleum
based facilities with similar annual capacities.
`(H) STANDBY LOAN AGREEMENT- The term `standby loan agreement' means a
loan agreement entered into under paragraph (2).
`(A) LOAN AUTHORITY- The Secretary may enter into standby loan agreements
with not more than six qualifying CTL projects, at least one of which
shall be a project jointly or in part owned by two or more small coal
producers. Such an agreement--
`(i) shall provide that the Secretary will make a direct loan (within
the meaning of section 502(1) of the Federal Credit Reform Act of 1990)
to the qualifying CTL project; and
`(ii) shall set a cap price and a minimum price for the primary term
of the agreement.
`(B) LOAN DISBURSEMENTS- Such a loan shall be disbursed during the primary
term of such agreement whenever the market price falls below the minimum
price. The amount of such disbursements in any calendar quarter shall
be equal to the excess of the minimum price over the market price, times
the output of the project (but not more than a total level of disbursements
specified in the agreement).
`(C) LOAN REPAYMENTS- The Secretary shall establish terms and conditions,
including interest rates and amortization schedules, for the repayment
of such loan within the full term of the agreement, subject to the following
limitations:
`(i) If in any calendar quarter during the primary term of the agreement
the market price is less than the cap price, the project may elect to
defer some or all of its repayment obligations due in that quarter.
Any unpaid obligations will continue to accrue interest.
`(ii) If in any calendar quarter during the primary term of the agreement
the market price is greater than the cap price, the project shall meet
its scheduled repayment obligation plus deferred repayment obligations,
but shall not be required to pay in that quarter an amount that is more
than the excess of the market price over the cap price, times the output
of the project.
`(iii) At the end of the primary term of the agreement, the cumulative
amount of any deferred repayment obligations, together with accrued
interest, shall be amortized (with interest) over the remainder of the
full term of the agreement.
`(3) PROFIT-SHARING- The Secretary is authorized to enter into a profit-sharing
agreement with the project at the time the standby loan agreement is executed.
Under such an agreement, if the market price exceeds the cap price in a
calendar quarter, a profit-sharing payment shall be made for that quarter,
in an amount equal to--
`(A) the excess of the market price over the cap price, times the output
of the project; less
`(B) any loan repayments made for the calendar quarter.
`(4) COMPLIANCE WITH FEDERAL CREDIT REFORM ACT-
`(A) UPFRONT PAYMENT OF COST OF LOAN- No standby loan agreement may be
entered into under this subsection unless the project makes a payment
to the United States that the Office of Management and Budget determines
is equal to the cost of such loan (determined under 502(5)(B) of the Federal
Credit Reform Act of 1990). Such payment shall be made at the time the
standby loan agreement is executed.
`(B) MINIMIZATION OF RISK TO THE GOVERNMENT- In making the determination
of the cost of the loan for purposes of setting the payment for a standby
loan under subparagraph (A), the Secretary and the Office of Management
and Budget shall take into consideration the extent to which the minimum
price and the cap price reflect historical patterns of volatility in actual
oil prices relative to projections of future oil prices, based upon publicly
available data from the Energy Information Administration, and employing
statistical methods and analyses that are appropriate for the analysis
of volatility in energy prices.
`(C) TREATMENT OF PAYMENTS- The value to the United States of a payment
under subparagraph (A) and any profit-sharing payments under paragraph
(3) shall be taken into account for purposes of section 502(5)(B)(iii)
of the Federal Credit Reform Act of 1990 in determining the cost to the
Federal Government of a standby loan made under this subsection. If a
standby loan has no cost to the Federal Government, the requirements of
section 504(b) of such Act shall be deemed to be satisfied.
`(A) NO DOUBLE BENEFIT- A project receiving a loan under this subsection
may not, during the primary term of the loan agreement, receive a Federal
loan guarantee under subsection (a) of this section, or under other laws.
`(B) SUBROGATION, ETC- Subsections (g)(2) (relating to subrogation), (h)
(relating to fees), and (j) (relating to full faith and credit) shall
apply to standby loans under this subsection to the same extent they apply
to loan guarantees.'.
SEC. 403. GOVERNMENT AUCTION OF LONG TERM PUT OPTION CONTRACTS ON COAL-TO-LIQUID
FUEL PRODUCED BY QUALIFIED COAL-TO-LIQUID FACILITIES.
(a) In General- The Secretary shall, from time to time, auction to the public
coal-to-liquid fuel put option contracts having expiration dates of 5 years,
10 years, 15 years, or 20 years.
(b) Consultation With Secretary of Energy- The Secretary shall consult with
the Secretary of Energy regarding--
(1) the frequency of the auctions;
(2) the strike prices specified in the contracts;
(3) the number of contracts to be auctioned with a given strike price and
expiration date; and
(4) the capacity of existing or planned facilities to produce coal-to-liquid
fuel.
(c) Definitions- In this section:
(1) COAL-TO-LIQUID FUEL- The term `coal-to-liquid fuel' means any transportation-grade
liquid fuel derived primarily from coal (including peat) and produced at
a qualified coal-to-liquid facility.
(2) COAL-TO-LIQUID PUT OPTION CONTRACT- The term `coal-to-liquid put option
contract' means a contract, written by the Secretary, which--
(A) gives the holder the right (but not the obligation) to sell to the
Government of the United States a certain quantity of a specific type
of coal-to-liquid fuel produced by a qualified coal-to-liquid facility
specified in the contract, at a strike price specified in the contract,
on or before an expiration date specified in the contract; and
(B) is transferable by the holder to any other entity.
(3) QUALIFIED COAL-TO-LIQUID FACILITY- The term `qualified coal-to-liquid
facility' means a manufacturing facility that has the capacity to produce
at least 10,000 barrels per day of transportation grade liquid fuels from
a feedstock that is primarily domestic coal (including peat and any property
which allows for the capture, transportation, or sequestration of by-products
resulting from such process, including carbon emissions).
(4) SECRETARY- The term `Secretary' means the Secretary of the Treasury.
(5) STRIKE PRICE- The term `strike price' means, with respect to a put option
contract, the price at which the holder of the contract has the right to
sell the fuel which is the subject of the contract.
(d) Regulations- The Secretary shall prescribe such regulations as may be
necessary to carry out this section.
(e) Effective Date- This section shall take effect 1 year after the date of
the enactment of this Act.
TITLE V--NUCLEAR
SEC. 501. USE OF FUNDS FOR RECYCLING.
Section 302 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222) is amended--
(1) in subsection (d), by striking `The Secretary may' and inserting `Except
as provided in subsection (f), the Secretary may'; and
(2) by adding at the end the following new subsection:
`(1) IN GENERAL- Amounts in the Waste Fund may be used by the Secretary
of Energy to make grants to or enter into long-term contracts with private
sector entities for the recycling of spent nuclear fuel.
`(2) COMPETITIVE SELECTION- Grants and contracts authorized under paragraph
(1) shall be awarded on the basis of a competitive bidding process that--
`(A) maximizes the competitive efficiency of the projects funded;
`(B) best serves the goal of reducing the amount of waste requiring disposal
under this Act; and
`(C) ensures adequate protection against the proliferation of nuclear
materials that could be used in the manufacture of nuclear weapons.'.
SEC. 502. RULEMAKING FOR LICENSING OF SPENT NUCLEAR FUEL RECYCLING FACILITIES.
(a) Requirement- The Nuclear Regulatory Commission shall, as expeditiously
as possible, but in no event later than 2 years after the date of enactment
of this Act, complete a rulemaking establishing a process for the licensing
by the Nuclear Regulatory Commission, under the Atomic Energy Act of 1954,
of facilities for the recycling of spent nuclear fuel.
(b) Funding- Amounts in the Nuclear Waste Fund established under section 302
of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222) shall be made available
to the Nuclear Regulatory Commission to cover the costs of carrying out subsection
(a) of this section.
SEC. 503. NUCLEAR WASTE FUND BUDGET STATUS.
Section 302(e) of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(e))
is amended by adding at the end the following new paragraph:
`(7) The receipts and disbursements of the Waste Fund shall not be counted
as new budget authority, outlays, receipts, or deficits or surplus for purposes
of--
`(A) the budget of the United States Government as submitted by the President;
`(B) the congressional budget; or
`(C) the Balanced Budget and Emergency Deficit Control Act of 1985.'.
SEC. 504. WASTE CONFIDENCE.
The Nuclear Regulatory Commission may not deny an application for a license,
permit, or other authorization under the Atomic Energy Act of 1954 on the
grounds that sufficient capacity does not exist, or will not become available
on a timely basis, for disposal of spent nuclear fuel or high-level radioactive
waste from the facility for which the license, permit, or other authorization
is sought.
SEC. 505. ASME NUCLEAR CERTIFICATION CREDIT.
(a) In General- Subpart D of part IV of subchapter A of chapter 1 (relating
to business related credits) is amended by adding at the end the following
new section:
`SEC. 45O. ASME NUCLEAR CERTIFICATION CREDIT.
`(a) In General- For purposes of section 38, the ASME Nuclear Certification
credit determined under this section for any taxable year is an amount equal
to 15 percent of the qualified nuclear expenditures paid or incurred by the
taxpayer.
`(b) Qualified Nuclear Expenditures- For purposes of this section, the term
`qualified nuclear expenditures' means any expenditure related to--
`(1) obtaining a certification under the American Society of Mechanical
Engineers Nuclear Component Certification program, or
`(2) increasing the taxpayer's capacity to construct, fabricate, assemble,
or install components--
`(A) for any facility which uses nuclear energy to produce electricity,
and
`(B) with respect to the construction, fabrication, assembly, or installation
of which the taxpayer is certified under such program.
`(c) Timing of Credit- The credit allowed under subsection (a) for any expenditures
shall be allowed--
`(1) in the case of a qualified nuclear expenditure described in subsection
(b)(1), for the taxable year of such certification, and
`(2) in the case of any other qualified nuclear expenditure, for the taxable
year in which such expenditure is paid or incurred.
`(1) BASIS ADJUSTMENT- For purposes of this subtitle, if a credit is allowed
under this section for an expenditure, the increase in basis which would
result (but for this subsection) for such expenditure shall be reduced by
the amount of the credit allowed under this section.
`(2) DENIAL OF DOUBLE BENEFIT- No deduction shall be allowed under this
chapter for any amount taken into account in determining the credit under
this section.
`(e) Termination- This section shall not apply to any expenditures paid or
incurred in taxable years beginning after December 31, 2019.'.
(b) Conforming Amendments- (1) Subsection (b) of section 38 is amended by
striking `plus' at the end of paragraph (30), by striking the period at the
end of paragraph (31) and inserting `, plus', and by adding at the end the
following new paragraph:
`(32) the ASME Nuclear Certification credit determined under section 45O(a).'.
(2) Subsection (a) of section 1016 (relating to adjustments to basis) is amended
by striking `and' at the end of paragraph (36), by striking the period at
the end of paragraph (37) and inserting `, and', and by adding at the end
the following new paragraph:
`(38) to the extent provided in section 45O(e)(1).'.
(c) Effective Date- The amendments made by this section shall apply to expenditures
paid or incurred in taxable years beginning after December 31, 2007.
TITLE VI--CLEAN RENEWABLE ENERGY
SEC. 601. TRUST FUND.
(a) Creation of Trust Fund- Subchapter A of chapter 98 of the Internal Revenue
Code of 1986 is amended by inserting at the end the following new section:
`SEC. 9511. AMERICAN ENERGY TRUST FUND.
`(a) Establishment of Trust Fund- There is established in the Treasury of
the United States a trust fund to be known as the `American Energy Trust Fund',
consisting of such amounts as may be appropriated or credited to the American
Energy Trust Fund as provided in this section.
`(b) Transfers to Trust Fund- There are hereby appropriated to the American
Energy Trust Fund all revenues generated by titles I, II, and III of the Americans
for American Energy Act of 2008 not reserved for other purposes.
`(c) Expenditures From American-Made Energy Trust Fund-
`(1) IN GENERAL- As provided by appropriation Acts, amounts in the American
Energy Trust Fund shall be available for transfer to the general fund of
the Treasury to offset any reduction in revenue to the United States that
results from any provision of the Americans for American Energy Act of 2008.
`(2) FUNDING FOR RENEWABLE ENERGY PROVISIONS IN THE ENERGY POLICY ACT OF
2005- Amounts in the American Energy Trust fund shall be available without
further appropriation to carry out specified provisions of the Energy Policy
Act of 2005 (Public Law 109-58; in this section referred to as `EPAct2005'),
as follows:
`(3) FUNDING FOR PROVISIONS OF ENERGY INDEPENDENCE AND SECURITY ACT OF 2007-
Amounts in the American Energy Trust Fund shall be available without further
appropriation to carry out specified provisions of the Energy Independence
and Security Act of 2007 (Public Law 110-140; in this section referred to
as `EISAct2007'), as follows:
`(4) FUNDING FOR PROVISIONS OF AMERICANS FOR AMERICAN ENERGY ACT OF 2008-
Amounts in the American Energy Trust Fund shall be made available without
further appropriation to carry out specified provisions of the Americans
for American Energy Act of 2008 as follows:
`(A) Title I, section 15.
`(5) LIMITATION ON AVAILABILITY TO CARRY OUT PROVISIONS OF THE ENERGY POLICY
ACT OF 2005, THE ENERGY INDEPENDENCE AND SECURITY ACT OF 2007, AND THE AMERICANS
FOR AMERICAN ENERGY ACT OF 2008- Notwithstanding paragraph (1), amounts
in the American-Made Energy Trust Fund shall be available to carry out the
provisions referred to in paragraphs (2), (3), and (4) only with respect
to so much of such amount as the Secretary certifies, in the estimation
of the Secretary, is in excess (taking into account the Secretary's estimate
of future appropriations and credits to the American Energy Trust Fund)
of the amounts necessary to make all future transfers described in paragraph
(1).
`(6) APPORTIONMENT OF EXCESS AMOUNT- Notwithstanding paragraph (1), the
excess amount certified by the Secretary under paragraph (1) shall be apportioned
to the provisions referred to in paragraphs (2), (3), and (4) according
to the percentages as follows:
`(A) Section 210, 3 percent.
`(B) Section 242, 2 percent.
`(C) Section 369, 3 percent.
`(D) Section 401, 3 percent.
`(E) Section 812, 2 percent.
`(F) Section 931, 10 percent.
`(G) Section 942, 1.5 percent.
`(H) Section 968, 1,5 percent.
`(I) Title XVII, 4 percent.
`(J) Section 207, 1 percent.
`(K) Section 607, 2 percent.
`(L) Subtitle B, 4 percent.
`(M) Subtitle C, 2 percent.
`(N) Section 641, 2 percent.
`(O) Subtitle A, 2 percent.
`(P) Title 1, section 15, 5 percent.
`(Q) Title V, section 4, 7 percent.
`(R) Title XI, 5 percent.
`(S) Title XII, 40 percent.
`(7) FUNDING LIMITATION- Funds distributed in paragraph (6) shall not exceed
maximum authorization levels for individual programs. Excess funds above
authorized levels, with exception of paragraph (6)(S), shall be deposited
in the general treasury.
`(8) MAXIMUM TIME LIMITATION- Notwithstanding paragraph (1), funding allocations
made available by this Act shall require reauthorization at the end of fiscal
year 2018 in order to evaluate advances in technology and national priorities.
`(9) REPORT TO CONGRESS- Any certification made under paragraph (1) shall
be made in a written report to the Congress and shall include the relevant
estimates of the Secretary of future transfers, appropriations, and credits.'.
(b) Clerical Amendment- The table of sections for subchapter A of chapter
98 of such Code is amended by inserting at the end the following new item:
`Sec. 9511. American Energy Trust Fund.'.
(c) Effective Date- The amendments made by this section shall apply after
the date of the enactment of this Act.
SEC. 602. DEVELOPING SOLAR ENERGY ON FEDERAL LANDS.
(a) In General- The Secretary of the Interior shall carry out in accordance
with this section a program for the leasing of Federal lands for the advancement,
development, assessment, installation, and operation of commercial photovoltaic
and concentrating solar power energy systems.
(b) Identification of Lands for Leasing-
(1) LANDS SELECTION- The Secretary of the Interior, acting through the Director
of the Bureau of Land Management and in consultation with the Secretary
of Energy, shall--
(A) identify lease sites comprising a total of 6,400,000 acres of Federal
lands under the jurisdiction of the Bureau of Land Management in the States
of Arizona, California, New Mexico, Nevada, and Utah, that are suitable
and feasible for the installation and operation of photovoltaic and concentrating
solar power energy systems, subject to valid existing rights; and
(B) incorporate solar energy development into the relevant agency land
use and resource management plans or equivalent plans for the lands identified
under subparagraph (A).
(2) MINIMUM AND MAXIMUM ACREAGE OF SITES- Each individual lease site identified
under paragraph (1)(A) shall be a minimum of 1280 acres and shall not exceed
12,800 acres.
(3) LANDS RELEASED FOR LEASING- The Secretary shall release for leasing
under this section lease sites identified under paragraph (1), in acreages
that meet the following annual milestones:
(A) By 2010, 79,012 acres.
(B) By 2011, 316,049 acres.
(C) By 2012, 711,111 acres.
(D) By 2013, 1,300,000 acres.
(E) By 2014, 2,000,000 acres.
(F) By 2015, 2,800,000 acres.
(G) By 2016, 3,700,000 acres.
(H) By 2017, 4,650,000 acres.
(I) By 2018, 5,800,000 acres.
(J) By 2019, 6,400,000 acres.
(4) LANDS NOT INCLUDED- The following Federal lands shall not be included
within a solar lands leasing program:
(A) Components of the National Landscape Conservation System.
(B) Wilderness and Wilderness Study Areas.
(C) Wild and Scenic Rivers.
(D) National Scenic and Historic Trails.
(F) Resource Natural Areas.
(c) Competitive Lease Sale Requirements Leasing Procedures-
(1) NOMINATIONS- The Secretary shall accept at any time nominations of land
identified under subsection (b) for leasing under this Act, from any qualified
person.
(2) COMPETITIVE LEASE SALE REQUIRED-
(A) IN GENERAL- Except as otherwise specifically provided by this Act,
all land to be leased under this Act that is not subject to leasing under
paragraph (3) shall be leased to the highest responsible qualified bidder,
as determined by the Secretary.
(B) ANNUAL SALES REQUIRED- The Secretary shall hold a competitive lease
sale under this Act at least once every year for land in a State with
respect to which there is a nomination pending under paragraph (1) of
land otherwise available for leasing.
(3) NONCOMPETITIVE LEASING- The Secretary shall make available for a period
of 2 years for noncompetitive leasing any tract for which a competitive
lease sale is held under paragraph (2), but for which the Secretary does
not receive any bids in such sale.
(4) PENDING LEASE APPLICATIONS- It shall be a priority for the Secretary
to ensure timely completion of administrative actions and process applications
for leasing of Federal lands described in subsection (b)(1)(A) for installation
and operation of photovoltaic and concentrating solar power energy systems,
that are pending on the date of enactment of this subsection.
(d) Leasing Time Period- Any lease of lands under this section shall be effective
for a period of 30 years, with an option to renew once for an additional period
of 30 years.
(e) Reservation of Royalty-
(1) IN GENERAL- Production of solar energy under a lease under this section
shall be subject to a royalty described in paragraph (2), which shall be
assessed and collected by the Secretary of the Interior, acting through
the Minerals Management Service. The leaseholder shall be liable for payment
of such royalty.
(2) ROYALTY FOR PROJECTS UNDER THE FEDERAL SOLAR LANDS LEASING PROGRAM-
The royalty under paragraph (1) shall be--
(A) 0.25 percent per kw/h on energy produced under the lease in years
1 through 5 of the lease;
(B) 0.5 percent per kw/h on energy produced under the lease in years 5
through 15 of the lease;
(C) 1 percent per kw/h on energy produced under the lease in years 15
through 30 of the lease; and
(D) 1 percent per kw/h on energy produced under the lease after year 30.
(3) REVENUE SHARING- Of the amount received by the United States as royalty
under this subsection for a leased tract--
(A) one-third shall be paid to the State in which the lands are located;
(B) one-third shall be paid to the county in which the lands are located;
and
(C) one-third shall be deposited into the American Energy Trust fund created
by this title.
(f) Duties of Leaseholders-
(1) PAYMENT OF ROYALTY- A person who is required to make any royalty payment
under this section shall make such payments to the United States at such
times and in such manner as the Secretary may by rule prescribe.
(2) JOINT AND SEVERABLE LIABILITY- Any person liable for royalty payments
under this section who assigns any payment obligation shall remain jointly
and severally liable for all royalty payments due for the claim for the
period.
(3) AFFIRMATION OF PAYMENT RESPONSIBILITY- Any person paying royalties under
this section shall file a written instrument, together with the first royalty
payment, affirming that such person is responsible for making proper payments
for all amounts due for all time periods for which such person has a payment
responsibility. Such responsibility for the periods referred to in the preceding
sentence shall include any and all additional amounts billed by the Secretary
and determined to be due by final agency or judicial action.
(4) RECORDKEEPING- Records required by the Secretary under this section
shall be maintained for 7 years after release of financial assurance unless
the Secretary notifies the leaseholder that the Secretary has initiated
an audit or investigation involving such records and that such records must
be maintained for a longer period. In any case when an audit or investigation
is underway, records shall be maintained until the Secretary releases the
operator of the obligation to maintain such records.
(5) AUDITS- The Secretary may conduct such audits of all leaseholders directly
or indirectly involved in the production of solar energy on lands leased
under this section as the Secretary considers necessary for the purposes
of ensuring compliance with the requirements of this section. For purposes
of performing such audits, the Secretary shall, at reasonable times and
upon request, have access to, and may copy, all books, papers, and other
documents that relate to compliance with any provision of this section by
any person.
(6) PROVISION OF PROTECTED INFORMATION- Trade secrets, proprietary, and
other confidential information protected from disclosure under section 552
of title 5, United States Code, popularly known as the Freedom of Information
Act, shall be made available by the Secretary to other Federal agencies
as necessary to assure compliance with this Act and other Federal laws.
(A) PENALTY- If there is any underreporting of royalty owed on energy
produced under a lease for any production month by any person liable for
royalty payments under this section, the Secretary shall assess a penalty
of not greater than 10 percent of the amount of that underreporting.
(B) WAIVER OR REDUCTION AUTHORIZED- The Secretary may waive or reduce
a penalty assessed under this paragraph if the person liable for royalty
payments under this section corrects the underreporting before the date
such person receives notice from the Secretary that an underreporting
may have occurred, or before 90 days after the date of the enactment of
this section, whichever is later.
(C) WAIVER REQUIRED- The Secretary shall waive any portion of an assessment
under this paragraph attributable to that portion of the underreporting
for which the person responsible for paying the royalty demonstrates that--
(i) such person had written authorization from the Secretary to report
royalty on the value of the production on basis on which it was reported;
(ii) such person had substantial authority for reporting royalty on
the value of the production on the basis on which it was reported;
(iii) such person previously had notified the Secretary, in such manner
as the Secretary may by rule prescribe, of relevant reasons or facts
affecting the royalty treatment of specific production which led to
the underreporting; or
(iv) such person meets any other exception which the Secretary may,
by rule, establish.
(D) TREATMENT AS FEDERAL SHARE- Subsection (b)(4) shall not apply to penalties
received by the United States under this paragraph.
(E) UNDERREPORTING DEFINED- For the purposes of this subsection, the term
`underreporting' means the difference between the royalty on the value
of the production that should have been reported and the royalty on the
value of the production that was reported, if the value that should have
been reported is greater than the value that was reported.
(g) Programmatic Environmental Impact Statement- Not later than 18 months
after the date of enactment of this Act, in accordance with section 102(2)(C)
of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)), the
Secretary of the Interior shall complete a programmatic environmental impact
statement for the solar leasing program under section 3.
(h) Final Regulation- Not later than 6 months after the completion of the
programmatic environmental impact statement under this section, the Secretary
shall publish a final regulation implementing this section.
(i) Study- Not later than 2 years after the date of enactment of this Act,
the Secretary of the Interior shall complete a study of--
(1) Federal lands available for possible consideration of leasing for a
compressed air energy storage system;
(2) barriers to additional access to Federal lands for transmission of energy
produced under leases awarded under the solar energy leasing program under
this Act; and
(3) the need for energy transmission corridors on public lands to address
identified congestion or constraints.
TITLE VII--PROMOTE GREATER ENERGY EFFICIENCY AND CONSERVATION
SEC. 701. INCREASE AND EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS
DEDUCTION.
(a) Increase in Amount of Deduction- Section 179D of the Internal Revenue
Code of 1986 (relating to energy efficient commercial buildings deduction)
is amended--
(1) in subsection (b)(1)(A) by striking `$1.80' and inserting `$2.25', and
(2) in subsection (d)(1)(A) by striking `$.60 for $1.80' and inserting `$.75
for $2.25'.
(b) Extension- Subsection (h) of section 179D of such Code (relating to termination)
is amended by striking `December 31, 2008' and inserting `December 31, 2013'.
(c) Effective Date- The amendments made by this section shall apply to property
placed in service in taxable years beginning after December 31, 2006.
SEC. 702. PERMANENT EXTENSION OF THE CREDIT FOR NONBUSINESS ENERGY PROPERTY,
THE CREDIT FOR GAS PRODUCED FROM BIOMASS AND FOR SYNTHETIC FUELS PRODUCED
FROM COAL, AND THE CREDIT FOR ENERGY EFFICIENT APPLIANCES.
(a) Credit for Nonbusiness Energy Property Made Permanent-
(1) IN GENERAL- Section 25C of the Internal Revenue Code of 1986 is amended
by striking subsection (g).
(2) EFFECTIVE DATE- The amendment made by this subsection shall apply to
property placed in service after December 31, 2007.
(b) Credit for Gas Produced From Biomass and for Synthetic Fuels Produced
From Coal Made Permanent-
(1) IN GENERAL- Subparagraph (B) of section 45K(f)(1) of such Code is amended
to read as follows:
`(B) if such facility is originally placed in service after December 31,
1992, paragraph (2) of subsection (e) shall not apply.'.
(2) EFFECTIVE DATE- The amendment made by this subsection shall apply to
fuel sold after December 31, 2007.
(c) Credit for Energy Efficient Appliances Made Permanent-
(A) Subparagraph (A) of section 45M(b)(1) of such Code is amended by striking
`which--' and all that follows and inserting `which meets the requirements
of the Energy Star program which are in effect for dishwashers for the
calendar year in which manufactured.'.
(B) Clauses (i) and (ii) of section 45M(b)(2)(B) of such Code are amended
to read as follows:
`(i) the EF required by the Energy Star program for dishwashers for
the calendar year in which manufactured minus the EF required by the
Energy Star program for dishwashers in 2005, to
`(ii) the EF required by the Energy Star program for dishwashers for
the calendar year in which manufactured.'.
(2) CLOTHES WASHERS- Subparagraph (B) of section 45M(b)(1) of such Code
is amended by striking `which--' and all that follows and inserting `which
meets the requirements of the Energy Star program which are in effect for
clothes washers for the calendar year in which manufactured.'.
(A) Clause (i) of section 45M(b)(1)(C) of such Code is amended by striking
`which--' and all that follows and inserting `which consumes at least
15 percent but not more than 20 percent less kilowatt hours per year than
the 2001 energy conservation standards.'.
(B) Clause (ii) of section 45M(b)(1)(C) of such Code is amended by striking
`which--' and all that follows and inserting `which consumes at least
20 percent but not more than 25 percent less kilowatt hours per year than
the 2001 energy conservation standards.'.
(C) Clause (iii) of section 45M(b)(1)(C) of such Code is amended by striking
`which--' and all that follows and inserting `which consumes at least
25 percent less kilowatt hours per year than the 2001 energy conservation
standards.'.
(4) EFFECTIVE DATE- The amendments made by this subsection shall apply to
appliances manufactured after 2007.
SEC. 703. EXTENSION AND CLARIFICATION OF NEW ENERGY EFFICIENT HOME CREDIT.
(a) Extension- Subsection (g) of section 45L of the Internal Revenue Code
of 1986 (relating to termination), as amended by section 205 of division A
of the Tax Relief and Health Care Act of 2006, is amended by striking `December
31, 2008' and inserting `December 31, 2013'.
(1) IN GENERAL- Paragraph (1) of section 45L(a) is amended by striking `and'
at the end of subparagraph (A) and by striking subparagraph (B) and inserting
the following:
`(B) acquired by a person from such eligible contractor, and
`(C) used by any person as a residence during the taxable year.'.
(2) EFFECTIVE DATE- The amendments made by this subsection shall take effect
as if included in section 1332 of the Energy Policy Act of 2005.
SEC. 704. EXTENSION AND MODIFICATION OF DEDUCTION FOR ENERGY EFFICIENT COMMERCIAL
BUILDINGS.
(a) Extension- Subsection (h) of section 179D of the Internal Revenue Code
of 1986 (relating to termination) is amended to read as follows:
`(h) Termination- This section shall not apply with respect to property--
`(1) which is certified under subsection (d)(6) after December 31, 2012,
or
`(2) which is placed in service after December 31, 2014.
A provisional certification shall be treated as meeting the requirements of
paragraph (1) if it is based on the building plans, subject to inspection
and testing after installation.'.
(b) Increase in Maximum Amount of Deduction-
(1) IN GENERAL- Subparagraph (A) of section 179D(b)(1) of such Code is amended
by striking `$1.80' and inserting `$2.25'.
(2) PARTIAL ALLOWANCE- Paragraph (1) of section 179D(d) of such Code is
amended--
(A) by striking `$.60' and inserting `$0.75', and
(B) by striking `$1.80' and inserting `$2.25'.
(c) Modifications to Certain Special Rules-
(1) METHODS OF CALCULATING ENERGY SAVINGS-
(A) IN GENERAL- Paragraph (2) of section 179D(d) of such Code is amended--
(i) by inserting `in detail' after `based',
(ii) by inserting `, except that the Secretary shall use Standard 90.1-2001
in lieu of the California title 24 energy standards and the tables contained
therein and the Secretary may add requirements from Standard 90.1-2001
(or any successor standard)' before the period at the end, and
(iii) by adding at the end the following new sentence: `The calculation
methods contained in such regulations shall also provide for the calculation
of appropriate energy savings for design methods and technologies not
otherwise credited in such manual or standard, including energy savings
associated with natural ventilation, evaporative cooling, automatic
lighting controls (such as occupancy sensors, photocells, and time clocks),
day lighting, designs utilizing semi-conditioned spaces which maintain
adequate comfort conditions without air conditioning or without heating,
improved fan system efficiency (including reductions in static pressure),
advanced unloading mechanisms for mechanical cooling (such as multiple
or variable speed compressors), on-site generation of electricity (including
combined heat and power systems, fuel cells, and renewable energy generation
such as solar energy), and wiring with lower energy losses than wiring
satisfying Standard 90.1-2001 requirements for building power distribution
systems.'.
(B) REQUIREMENTS FOR COMPUTER SOFTWARE USED IN CALCULATING ENERGY AND
POWER CONSUMPTION COSTS- Paragraph (3)(B) of section 179D(d) of such Code
is amended by striking `and' at the end of clause (ii), by striking the
period at the end of clause (iii) and inserting `, and', and by adding
at the end the following:
`(iv) which automatically--
`(I) generates the features, energy use, and energy and power consumption
costs of a reference building which meets Standard 90.1-2001,
`(II) generates the features, energy use, and energy and power consumption
costs of a compliant building or system which reduces the annual energy
and power costs by 50 percent compared to Standard 90.1-2001, and
`(III) compares such features, energy use, and consumption costs to
the features, energy use, and consumption costs of the building or
system with respect to which the calculation is being made.'.
(2) TARGETS FOR PARTIAL ALLOWANCE OF CREDIT- Paragraph (1)(B) of section
179D(d) of such Code is amended--
(A) by striking `The Secretary' and inserting the following:
`(i) IN GENERAL- The Secretary', and
(B) by adding at the end the following:
`(i) ADDITIONAL REQUIREMENTS- For purposes of clause (i)--
`(I) the Secretary shall determine prescriptive criteria that can
be modeled explicitly for reference buildings which meet the requirements
of subsection (c)(1)(D) for different building types and regions,
`(II) a system may be certified as meeting the target under subparagraph
(A)(ii) if the appropriate reference building either meets the requirements
of subsection (c)(1)(D) with such system rather than the comparable
reference system (using the calculation under paragraph (2)) or meets
the relevant prescriptive criteria under subclause (I), and
`(III) the lighting system target shall be based on lighting power
density, except that it shall allow lighting controls credits that
trade off for lighting power density savings based on Section 3.2.2
of the 2005 California Nonresidential Alternative Calculation Method
Approval Manual.
`(B) PUBLICATION- The Secretary shall publish in the Federal Register
the bases for the target levels established in the regulations under clause
(i).'.
(d) Alternative Standards- Section 179D(d) of such Code is amended by adding
at the end the following new paragraph:
`(7) ALTERNATIVE STANDARDS PENDING FINAL REGULATIONS- Until such time as
the Secretary issues final regulations under paragraph (1)(B)--
`(A) in the case of property which is part of a building envelope, the
building envelope system target under paragraph (1)(A)(ii) shall be a
7 percent reduction in total annual energy and power costs (determined
in the same manner as under subsection (c)(1)(D)), and
`(B) in the case of property which is part of the heating, cooling, ventilation,
and hot water systems, the heating, cooling, ventilation, and hot water
system shall be treated as meeting the target under paragraph (1)(A)(ii)
if it would meet the requirement in subsection (c)(1)(D) if combined with
a building envelope system and lighting system which met their respective
targets under paragraph(1)(A)(ii) (including interim targets in effect
under subsection (f) and subparagraph (A)).'.
(e) Modifications to Lighting Standards-
(1) STANDARDS TO BE ALTERNATE STANDARDS- Subsection (f) of section 179D
of such Code is amended by--
(A) striking `Interim' in the heading and inserting `Alternative', and
(B) inserting `, or, if the taxpayer elects, in lieu of the target set
forth in such final regulations' after `lighting system' at the end of
the matter preceding paragraph (1).
(2) QUALIFIED INDIVIDUALS- Section 179D(d)(6)(C) of such Code is amended
by adding at the end the following: `For purposes of certification of whether
the alternative target for lighting systems under subsection (f) is met,
individuals qualified to determine compliance shall include individuals
who are certified as Lighting Certified (LC) by the National Council on
Qualifications for the Lighting Professions, Certified Energy Managers (CEM)
by the Association of Energy Engineers, and LEED Accredited Professionals
(AP) by the U.S. Green Buildings Council.'.
(3) REQUIREMENT FOR BILEVEL SWITCHING- Section 179D(f)(2) of such Code is
amended by adding at the end the following new subparagraph:
`(3) APPLICATION OF SUBSECTION TO BILEVEL SWITCHING-
`(A) IN GENERAL- Notwithstanding paragraph (2)(C)(i), this subsection
shall apply to a system which does not include provisions for bilevel
switching if the reduction in lighting power density is at least 37.5
percent of the minimum requirements in Table 9.3.1.1 or Table 9.3.1.2
(not including additional interior lighting allowances) of Standard 90.1-2001.
`(B) REDUCTION IN DEDUCTION- In the case of a system to which this subsection
applies by reason of subparagraph (A), paragraph (2) shall be applied--
`(i) by striking `40 percent' and inserting `50 percent' in subparagraph
(A) thereof, and
`(ii) in subparagraph (B)(ii) thereof--
`(I) by striking `25 percentage points' and inserting `37.5 percentage
points'; and
`(II) by striking `15' and inserting `12.5'.'.
(f) Public Property- Paragraph (4) of section 179(d) of such Code is amended
by striking `the Secretary shall promulgate a regulation to allow the allocation
of the deduction' and inserting `the deduction under this section shall be
allowed'.
(g) Effective Date- The amendments made by this section shall apply to property
placed in service in taxable years beginning after the date of the enactment
of this Act.
SEC. 705. DEDUCTION FOR ENERGY EFFICIENT LOW-RISE BUILDINGS.
(a) In General- Part VI of subchapter B of chapter 1 of the Internal Revenue
Code of 1986, as amended by section 404 of division A of the Tax Relief and
Health Care Act of 2006, is amended by inserting after section 179E the following
new section:
`SEC. 179F. ENERGY EFFICIENT LOW-RISE BUILDINGS DEDUCTION.
`(a) In General- There shall be allowed as a deduction an amount equal to
the amount of qualified energy efficiency expenditures paid or incurred by
the taxpayer during the taxable year.
`(1) IN GENERAL- The amount allowed as a credit under subsection (a) with
respect to any dwelling unit shall not exceed the product of--
`(A) the qualified energy savings achieved, and
`(2) MINIMUM AMOUNT OF QUALIFIED ENERGY SAVINGS- No credit shall be allowed
under subsection (a) with respect to any dwelling unit in a qualified low-rise
building which achieves a qualified energy savings of less than 20 percent.
`(c) Qualified Energy Efficiency Expenditures- For purposes of this section--
`(1) IN GENERAL- The term `qualified energy efficiency expenditures' means
any amount paid or incurred which is related to producing qualified energy
savings in any dwelling unit located in a qualified low-rise building of
the taxpayer which is located in the United States.
`(2) NO DOUBLE BENEFIT FOR CERTAIN EXPENDITURES- The term `qualified energy
efficiency expenditures' shall not include any expenditure for any property
for which a deduction has been allowed to the taxpayer under section 179G.
`(3) QUALIFIED LOW-RISE BUILDING- The term `qualified low-rise building'
means a building--
`(A) with respect to which depreciation is allowable under section 167,
`(B) which is used for multifamily housing, and
`(C) which is not within the scope of Standard 90.1-2001 (as defined under
section 179D(c)(2)).
`(d) Qualified Energy Savings- For purposes of this section--
`(1) IN GENERAL- The term `qualified energy savings' means, with respect
to any dwelling unit in a qualified low-rise building, the amount (measured
as a percentage) by which--
`(A) the annual energy use with respect to such dwelling unit after qualified
energy efficiency expenditures are made, as certified under paragraph
(2), is less than
`(B) the annual energy use with respect to such dwelling unit before the
qualified energy efficiency expenditures were made, as certified under
paragraph (2).
In determining annual energy use under subparagraph (B), any energy efficiency
improvements which are not attributable to qualified energy efficiency expenditures
shall be disregarded.
`(A) IN GENERAL- The Secretary, in consultation with the Secretary of
Energy, shall prescribe the procedures and method for the making of certifications
under this paragraph based on the Residential Energy Services Network
(RESNET) Technical Guidelines in effect on the date of the enactment of
this Act.
`(B) QUALIFIED INDIVIDUALS- Any certification made under this paragraph
may only be made by an individual who is recognized by an organization
certified by the Secretary for such purposes.
`(e) Special Rules- For purposes of this section, rules similar to the rules
under paragraphs (8) and (9) of section 25D(e) shall apply.
`(f) Basis Adjustments- For purposes of this subtitle, if a credit is allowed
under this section with respect to any expenditure with respect to any property,
the increase in the basis of such property which would (but for this subsection)
result from such expenditure shall be reduced by the amount of the credit
so allowed.
`(g) Termination- This section shall not apply with respect to any property
placed in service after December 31, 2013.'.
(b) Conforming Amendments-
(1) Section 263(a)(1) of such Code, as amended by section 404 of division
A of the Tax Relief and Health Care Act of 2006, is amended by striking
`or' at the end of subparagraph (K), by striking the period at the end of
subparagraph (L) and inserting `, or', and by inserting after subparagraph
(L) the following new subparagraph:
`(M) expenditures for which a deduction is allowed under section 179F.'.
(2) Section 312(k)(3)(B) of such Code is amended by striking `179, 179A,
179B, 179C, 179D, or 179E' each place it appears in the heading and text
and inserting `179, 179A, 179B, 179C, 179D, 179E, or 179F'.
(3) Section 1016(a) of such Code, as amended by section 101, is amended
by striking `and' at the end of paragraph (37), by striking the period at
the end of paragraph (38) and inserting `, and', and by adding at the end
the following new paragraph:
`(39) to the extent provided in section 179F(f).'.
(4) Section 1245(a) of such Code is amended by inserting `179F,' after `179E,'
both places it appears in paragraphs (2)(C) and (3)(C).
(5) The table of sections for part VI of subchapter B of such Code is amended
by inserting after the item relating to section 179E the following new item:
`Sec. 179F. Energy efficient low-rise buildings deduction.'.
(c) Effective Date- The amendments made by this section shall apply to amounts
paid or incurred in taxable years beginning after the date of the enactment
of this Act.
TITLE VIII--INCREASING AMERICA'S GASOLINE REFINING CAPABILITIES
SEC. 801. DEFINITIONS.
For purposes of this title--
(1) the term `Administrator' means the Administrator of the Environmental
Protection Agency;
(2) the term `applicant' means a person who (with the approval of the governor
of the State, or in the case of Native American tribes or tribal territories
the designated leader of the tribe or tribal community, where the proposed
refinery would be located) is seeking a Federal refinery authorization;
(3) the term `biomass' has the meaning given that term in section 932(a)(1)
of the Energy Policy Act of 2005;
(4) the term `Federal refinery authorization'--
(A) means any authorization required under Federal law, whether administered
by a Federal or State administrative agency or official, with respect
to siting, construction, expansion, or operation of a refinery; and
(B) includes any permits, licenses, special use authorizations, certifications,
opinions, or other approvals required under Federal law with respect to
siting, construction, expansion, or operation of a refinery;
(5) the term `refinery' means--
(A) a facility designed and operated to receive, load, unload, store,
transport, process, and refine crude oil by any chemical or physical process,
including distillation, fluid catalytic cracking, hydrocracking, coking,
alkylation, etherification, polymerization, catalytic reforming, isomerization,
hydrotreating, blending, and any combination thereof, in order to produce
gasoline or distillate;
(B) a facility designed and operated to receive, load, unload, store,
transport, process, and refine coal by any chemical or physical process,
including liquefaction, in order to produce gasoline or diesel as its
primary output; or
(C) a facility designed and operated to receive, load, unload, store,
transport, process (including biochemical, photochemical, and biotechnology
processes), and refine biomass in order to produce biofuel;
(6) the term `Secretary' means the Secretary of Energy; and
(7) the term `State' means a State, the District of Columbia, the Commonwealth
of Puerto Rico, and any other territory or possession of the United States.
SEC. 802. STATE ASSISTANCE.
(a) State Assistance- At the request of a governor of a State, or in the case
of Native American tribes or tribal territories the designated leader of the
tribe or tribal community, the Administrator is authorized to provide financial
assistance to that State or tribe or tribal community to facilitate the hiring
of additional personnel to assist the State or tribe or tribal community with
expertise in fields relevant to consideration of Federal refinery authorizations.
(b) Other Assistance- At the request of a governor of a State, or in the case
of Native American tribes or tribal territories the designated leader of the
tribe or tribal community, a Federal agency responsible for a Federal refinery
authorization shall provide technical, legal, or other nonfinancial assistance
to that State or tribe or tribal community to facilitate its consideration
of Federal refinery authorizations.
SEC. 803. REFINERY PROCESS COORDINATION AND PROCEDURES.
(a) Appointment of Federal Coordinator-
(1) IN GENERAL- The President shall appoint a Federal coordinator to perform
the responsibilities assigned to the Federal coordinator under this title.
(2) OTHER AGENCIES- Each Federal and State agency or official required to
provide a Federal refinery authorization shall cooperate with the Federal
coordinator.
(b) Federal Refinery Authorizations-
(1) MEETING PARTICIPANTS- Not later than 30 days after receiving a notification
from an applicant that the applicant is seeking a Federal refinery authorization
pursuant to Federal law, the Federal coordinator appointed under subsection
(a) shall convene a meeting of representatives from all Federal and State
agencies responsible for a Federal refinery authorization with respect to
the refinery. The governor of a State shall identify each agency of that
State that is responsible for a Federal refinery authorization with respect
to that refinery.
(2) MEMORANDUM OF AGREEMENT- (A) Not later than 90 days after receipt of
a notification described in paragraph (1), the Federal coordinator and the
other participants at a meeting convened under paragraph (1) shall establish
a memorandum of agreement setting forth the most expeditious coordinated
schedule possible for completion of all Federal refinery authorizations
with respect to the refinery, consistent with the full substantive and procedural
review required by Federal law. If a Federal or State agency responsible
for a Federal refinery authorization with respect to the refinery is not
represented at such meeting, the Federal coordinator shall ensure that the
schedule accommodates those Federal refinery authorizations, consistent
with Federal law. In the event of conflict among Federal refinery authorization
scheduling requirements, the requirements of the Environmental Protection
Agency shall be given priority.
(B) Not later than 15 days after completing the memorandum of agreement,
the Federal coordinator shall publish the memorandum of agreement in the
Federal Register.
(C) The Federal coordinator shall ensure that all parties to the memorandum
of agreement are working in good faith to carry out the memorandum of agreement,
and shall facilitate the maintenance of the schedule established therein.
(c) Consolidated Record- The Federal coordinator shall, with the cooperation
of Federal and State administrative agencies and officials, maintain a complete
consolidated record of all decisions made or actions taken by the Federal
coordinator or by a Federal administrative agency or officer (or State administrative
agency or officer acting under delegated Federal authority) with respect to
any Federal refinery authorization. Such record shall be the record for judicial
review under subsection (d) of decisions made or actions taken by Federal
and State administrative agencies and officials, except that, if the Court
determines that the record does not contain sufficient information, the Court
may remand the proceeding to the Federal coordinator for further development
of the consolidated record.
(1) IN GENERAL- The United States District Court for the district in which
the proposed refinery is located shall have exclusive jurisdiction over
any civil action for the review of the failure of an agency or official
to act on a Federal refinery authorization in accordance with the schedule
established pursuant to the memorandum of agreement.
(2) STANDING- If an applicant or a party to a memorandum of agreement alleges
that a failure to act described in paragraph (1) has occurred and that such
failure to act would jeopardize timely completion of the entire schedule
as established in the memorandum of agreement, such applicant or other party
may bring a cause of action under this subsection.
(3) COURT ACTION- If an action is brought under paragraph (2), the Court
shall review whether the parties to the memorandum of agreement have been
acting in good faith, whether the applicant has been cooperating fully with
the agencies that are responsible for issuing a Federal refinery authorization,
and any other relevant materials in the consolidated record. Taking into
consideration those factors, if the Court finds that a failure to act described
in paragraph (1) has occurred, and that such failure to act would jeopardize
timely completion of the entire schedule as established in the memorandum
of agreement, the Court shall establish a new schedule that is the most
expeditious coordinated schedule possible for completion of proceedings,
consistent with the full substantive and procedural review required by Federal
law. The court may issue orders to enforce any schedule it establishes under
this paragraph.
(4) FEDERAL COORDINATOR'S ACTION- When any civil action is brought under
this subsection, the Federal coordinator shall immediately file with the
Court the consolidated record compiled by the Federal coordinator pursuant
to subsection (c).
(5) EXPEDITED REVIEW- The Court shall set any civil action brought under
this subsection for expedited consideration.
SEC. 804. DESIGNATION OF CLOSED MILITARY BASES.
(a) Designation Requirement- Not later than 90 days after the date of enactment
of this Act, the President shall designate no less than 3 closed military
installations, or portions thereof, as potentially suitable for the construction
of a refinery. At least 1 such site shall be designated as potentially suitable
for construction of a refinery to refine biomass in order to produce biofuel.
(b) Redevelopment Authority- The redevelopment authority for each installation
designated under subsection (a), in preparing or revising the redevelopment
plan for the installation, shall consider the feasibility and practicability
of siting a refinery on the installation.
(c) Management and Disposal of Real Property- The Secretary of Defense, in
managing and disposing of real property at an installation designated under
subsection (a) pursuant to the base closure law applicable to the installation,
shall give substantial deference to the recommendations of the redevelopment
authority, as contained in the redevelopment plan for the installation, regarding
the siting of a refinery on the installation. The management and disposal
of real property at a closed military installation or portion thereof found
to be suitable for the siting of a refinery under subsection (a) shall be
carried out in the manner provided by the base closure law applicable to the
installation.
(d) Definitions- For purposes of this section--
(1) the term `base closure law' means the Defense Base Closure and Realignment
Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687
note) and title II of the Defense Authorization Amendments and Base Closure
and Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note); and
(2) the term `closed military installation' means a military installation
closed or approved for closure pursuant to a base closure law.
SEC. 805. SAVINGS CLAUSE.
Nothing in this title shall be construed to affect the application of any
environmental or other law, or to prevent any party from bringing a cause
of action under any environmental or other law, including citizen suits.
SEC. 806. REFINERY REVITALIZATION REPEAL.
Subtitle H of title III of the Energy Policy Act of 2005 and the items relating
thereto in the table of contents of such Act are repealed.
SEC. 807. NEW SOURCE REVIEW UNDER THE CLEAN AIR ACT.
Part A of title I of the Clean Air Act (42 U.S.C. 7401 and following) is amended
by adding the following new section at the end thereof:
`SEC. 132 NEW SOURCE REVIEW.
`In promulgating regulations respecting new source review under this Act,
the Administrator shall include in such regulations provisions providing that
routine maintenance and repair shall not constitute a modification of an existing
source requiring compliance with new source review requirements. Such provisions
shall provide that equipment replacement shall be considered routine maintenance
and repair if it meets each of the following requirements:
`(1) It does not increase actual emissions of any air pollutant by more
than 5 percent.
`(2) It does not increase actual emissions of any air pollutant by more
than 40 tons per year.
Notwithstanding any other provision of this Act, no State may include in any
State implementation plan any provisions regarding new source review that
are more stringent than those contained in the regulations of the Administrator
under this section.'.
SEC. 808. DESIGNATION OF NEW REFINING CAPACITY ON BROWNFIELD SITES.
(a) Designation Requirement- Not later than 90 days after the date of enactment
of this Act, the Secretary shall designate no less than 5 brownfield sites,
or portions thereof, subject to subsection (c)(2), that are appropriate and
available for the purposes of siting a refinery.
(b) Analysis of Refinery Sites- In considering any site for possible designation
under subsection (a), the Secretary shall conduct an analysis of--
(1) the availability of crude oil supplies to the site, including supplies
from domestic production of shale oil and tar sands and other strategic
unconventional fuels;
(2) the distribution of the Nation's refined petroleum product demand;
(3) whether such site is in close proximity to substantial pipeline infrastructure,
including both crude oil and refined petroleum product pipelines, and potential
infrastructure feasibility;
(4) the need to diversify the geographical location of the domestic refining
capacity;
(5) the effect that increased refined petroleum products from a refinery
on that site may have on the price and supply of gasoline to consumers;
and
(6) such other factors as the Secretary considers appropriate.
(c) Making Designated Sites Available-
(1) Secretary'S ROLE- If a designated site is owned by the Federal Government,
the Secretary shall take appropriate actions to make the site available
for the construction of a refinery. If the site is not owned by the Federal
Government, the Secretary shall facilitate the necessary transfer of interest
in the site from a willing seller to enable the construction of a refinery
on the site.
(2) Governor'S OBJECTION- No site may be used for a refinery under this
Act if, not later than 60 days after designation of the site under subsection
(a), the Governor of the State in which the site is located transmits to
the Secretary an objection to the designation, unless, not later than 60
days after the Secretary receives such objection, the Congress has by law
overridden the objection.
SEC. 809. YEAR EXTENSION OF ELECTION TO EXPENSE CERTAIN REFINERIES.
(a) In General- Paragraph (1) of section 179C(c) of the Internal Revenue Code
of 1986 (defining qualified refinery property) is amended--
(1) by striking `January 1, 2012' in subparagraph (B) and inserting `January
1, 2017', and (2) by striking `January 1, 2008' each place it appears in
subparagraph (F) and inserting `January 1, 2013'.
(b) Implementation Through Secretarial Guidance-
(1) GUIDANCE- Paragraph (1) of section 179C(b) of such Code (relating to
general rule for election) is amended by inserting `or other guidance' after
`regulations'.
(2) REPORTING- Subsection (h) of section 179C of such Code (relating to
reporting) is amended by striking `shall require' and inserting `may, through
guidance, require'.
(c) Effective Date- The amendments made by this Act shall apply to property
placed in service after December 31, 2007.
(d) Requirement for Issuance of Guidance- Not later than 90 days after the
date of the enactment of this Act, the Secretary of the Treasury shall issue
regulations or other guidance to carry out section 179C of the Internal Revenue
Code of 1986 (as amended by this section).
TITLE IX--COMMON SENSE REGULATORY RELIEF AND POLICY REFORM
SEC. 901. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY PRODUCTION TAX
CREDIT.
(a) Extension of Credit- Each of the following provisions of section 45(d)
(relating to qualified facilities) is amended by striking `January 1, 2009'
and inserting `January 1, 2018':
(2) Clauses (i) and (ii) of paragraph (2)(A).
(3) Clauses (i)(I) and (ii) of paragraph (3)(A).
(9) Subparagraphs (A) and (B) of paragraph (9).
(b) Production Credit for Electricity Produced From Marine Renewables-
(1) IN GENERAL- Paragraph (1) of section 45(c) (relating to resources) is
amended by striking `and' at the end of subparagraph (G), by striking the
period at the end of subparagraph (H) and inserting `, and', and by adding
at the end the following new subparagraph:
`(I) marine and hydrokinetic renewable energy.'.
(2) MARINE RENEWABLES- Subsection (c) of section 45 is amended by adding
at the end the following new paragraph:
`(10) MARINE AND HYDROKINETIC RENEWABLE ENERGY-
`(A) IN GENERAL- The term `marine and hydrokinetic renewable energy' means
energy derived from--
`(i) waves, tides, and currents in oceans, estuaries, and tidal areas,
`(ii) free flowing water in rivers, lakes, and streams,
`(iii) free flowing water in an irrigation system, canal, or other man-made
channel, including projects that utilize nonmechanical structures to
accelerate the flow of water for electric power production purposes,
or
`(iv) differentials in ocean temperature (ocean thermal energy conversion).
`(B) EXCEPTIONS- Such term shall not include any energy which is derived
from any source which utilizes a dam, diversionary structure (except as
provided in subparagraph (A)(iii)), or impoundment for electric power
production purposes.'.
(3) DEFINITION OF FACILITY- Subsection (d) of section 45 is amended by adding
at the end the following new paragraph:
`(11) MARINE AND HYDROKINETIC RENEWABLE ENERGY FACILITIES- In the case of
a facility producing electricity from marine and hydrokinetic renewable
energy, the term `qualified facility' means any facility owned by the taxpayer--
`(A) which has a nameplate capacity rating of at least 150 kilowatts,
and
`(B) which is originally placed in service on or after the date of the
enactment of this paragraph and before January 1, 2010.'.
(4) CREDIT RATE- Subparagraph (A) of section 45(b)(4) is amended by striking
`or (9)' and inserting `(9), or (11)'.
(5) COORDINATION WITH SMALL IRRIGATION POWER- Paragraph (5) of section 45(d),
as amended by subsection (a), is amended by striking `January 1, 2013' and
inserting `the date of the enactment of paragraph (11)'.
(c) Sales of Electricity to Regulated Public Utilities Treated as Sales to
Unrelated Persons- Section 45(e)(4) (relating to related persons) is amended
by adding at the end the following new sentence: `A taxpayer shall be treated
as selling electricity to an unrelated person if such electricity is sold
to a regulated public utility (as defined in section 7701(a)(33).'.
(d) Trash Facility Clarification- Paragraph (7) of section 45(d) is amended--
(1) by striking `facility which burns' and inserting `facility (other than
a facility described in paragraph (6)) which uses', and
(2) by striking `COMBUSTION' in the heading thereof.
(1) EXTENSION- The amendments made by subsection (a) shall apply to property
originally placed in service after December 31, 2008.
(2) MODIFICATIONS- The amendments made by subsections (b) and (c) shall
apply to electricity produced and sold after the date of the enactment of
this Act, in taxable years ending after such date.
(3) TRASH FACILITY CLARIFICATION- The amendments made by subsection (d)
shall apply to electricity produced and sold before, on, or after December
31, 2007.
SEC. 902. EXTENSION AND MODIFICATION OF SOLAR ENERGY AND FUEL CELL INVESTMENT
TAX CREDIT.
(1) SOLAR ENERGY PROPERTY- Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section
48(a) (relating to energy credit) are each amended by striking `January
1, 2009' and inserting `January 1, 2018'.
(2) FUEL CELL PROPERTY- Subparagraph (E) of section 48(c)(1) (relating to
qualified fuel cell property) is amended by striking `December 31, 2008'
and inserting `December 31, 2017'.
(3) QUALIFIED MICROTURBINE PROPERTY- Subparagraph (E) of section 48(c)(2)
(relating to qualified microturbine property) is amended by striking `December
31, 2008' and inserting `December 31, 2017'.
(b) Allowance of Energy Credit Against Alternative Minimum Tax- Subparagraph
(B) of section 38(c)(4) (relating to specified credits) is amended by striking
`and' at the end of clause (iii), by striking the period at the end of clause
(iv) and inserting `, and', and by adding at the end the following new clause:
`(v) the credit determined under section 46 to the extent that such credit
is attributable to the energy credit determined under section 48.'.
(c) Repeal of Dollar Per Kilowatt Limitation for Fuel Cell Property-
(1) IN GENERAL- Section 48(c)(1) (relating to qualified fuel cell), as amended
by subsection (a)(2), is amended by striking subparagraph (B) and by redesignating
subparagraphs (C), (D), and (E) as subparagraphs (B), (C), and (D), respectively.
(2) CONFORMING AMENDMENT- Section 48(a)(1) is amended by striking `paragraphs
(1)(B) and (2)(B) of subsection (c)' and inserting `subsection (c)(2)(B)'.
(d) Public Electric Utility Property Taken Into Account-
(1) IN GENERAL- Paragraph (3) of section 48(a) is amended by striking the
second sentence thereof.
(2) CONFORMING AMENDMENTS-
(A) Paragraph (1) of section 48(c), as amended by this section, is amended
by striking subparagraph (C) and redesignating subparagraph (D) as subparagraph
(C).
(B) Paragraph (2) of section 48(c), as amended by subsection (a)(3), is
amended by striking subparagraph (D) and redesignating subparagraph (E)
as subparagraph (D).
(1) EXTENSION- The amendments made by subsection (a) shall take effect on
the date of the enactment of this Act.
(2) ALLOWANCE AGAINST ALTERNATIVE MINIMUM TAX- The amendments made by subsection
(b) shall apply to credits determined under section 46 of the Internal Revenue
Code of 1986 in taxable years beginning after the date of the enactment
of this Act and to carrybacks of such credits.
(3) FUEL CELL PROPERTY AND PUBLIC ELECTRIC UTILITY PROPERTY- The amendments
made by subsections (c) and (d) shall apply to periods after the date of
the enactment of this Act, in taxable years ending after such date, under
rules similar to the rules of section 48(m) of the Internal Revenue Code
of 1986 (as in effect on the day before the date of the enactment of the
Revenue Reconciliation Act of 1990).
SEC. 903. REPEAL OF REQUIREMENT TO DEDUCT FROM AN AMOUNT PAYABLE TO EACH
STATE.
Title I of division F of the Consolidated Appropriations Act, 2008 is amended
under the heading `Minerals Management Service', under the heading `administrative
provisions', by striking the second sentence.
SEC. 904. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM CONVENTIONAL HYDROPOWER
PROJECTS.
(a) In General- Subparagraph (A) of section 45(c)(8) of the Internal Revenue
Code of 1986 (relating to qualified hydropower production) is amended by striking
`and' at the end of clause (i), by striking the period at the end of clause
(ii) and inserting `, and', and by adding at the end the following new clause:
`(iii) in the case of any hydroelectric dam which was placed in service
after the date of the enactment of this clause, the hydropower production
from the facility for the taxable year.'.
(b) Effective Date- The amendment made by this section shall apply to property
placed in service after the date of the enactment of this Act.
SEC. 905. DEFINITION OF RENEWABLE BIOMASS.
Section 211(o)(1)(I) of the Clean Air Act (42 U.S.C. 7545(o)(1)(I)) is amended--
(1) in clause (ii), by striking `on non-federal land'; and
(2) in clause (iv), by striking `that are from non-federal forestlands,
including forestlands' and inserting `from forestlands, including those
on public lands and those'.
SEC. 906. NEPA JUDICIAL REVIEW.
Title I of the National Environmental Policy Act of 1969 (42 U.S.C. 4331 et
seq.) is amended by adding at the end the following new section:
`SEC. 106. JUDICIAL REVIEW.
`(a) In General- Review of a Federal agency's compliance with section 102
of the Act may be filed in the circuit in which the petitioner resides or
transacts business which is directly affected by the action. Any such application
for review shall be made within ninety days from the date of promulgation
of the Federal agency's decision.
`(b) Procedures for Review-
`(1) LIMITATION- In any judicial action under this Act, judicial review
of any issues concerning a Federal agency's compliance with section 102
shall be limited to the administrative record. Otherwise applicable principles
of administrative law shall govern whether any supplemental materials may
be considered by the court.
`(2) STANDARD- In considering objections raised in any judicial action under
this Act, the court shall uphold the Federal agency's decision, whether
in is the first instance, a revocation, recession or other action, unless
the objecting party can demonstrate, on the administrative record, that
the decision was arbitrary and capricious or otherwise not in accordance
with law.
`(3) REMEDY- If the court finds that the selection of the response action
was arbitrary and capricious or otherwise not in accordance with law, the
court shall award such relief as the court deems appropriate.
`(4) PROCEDURAL ERRORS- In reviewing alleged procedural errors, the court
may disallow costs or damages only if the errors were so serious and related
to matters of such central relevance to the action that the action would
have been significantly changed had such errors not been made.
`(c) Notice of Actions- Whenever any action is brought under this Act in a
court of the United States by a plaintiff other than the United States, the
plaintiff shall provide a copy of the complaint to the Attorney General of
the United States and to the Secretary or Administrator of the affected Federal
agency.
`(d) Intervention- In any action commenced under this Act, any person may
intervene as a matter of right when such person claims an interest relating
to the subject of the action and is so situated that the disposition of the
action may, as a practical matter, impair or impede the person's ability to
protect that interest, unless the Secretary or Administrator shows that the
person's interest is adequately represented by existing parties.'.
TITLE X--TAX-EXEMPT FINANCING OF CERTAIN ELECTRIC TRANSMISSION FACILITIES
SEC. 1001. TAX-EXEMPT FINANCING OF CERTAIN ELECTRIC TRANSMISSION FACILITIES
NOT SUBJECT TO PRIVATE BUSINESS USE TEST.
(a) In General- Section 141(b)(6) of the Internal Revenue Code of 1986 (defining
private business use) is amended by adding at the end the following new subparagraph:
`(C) EXCEPTION FOR CERTAIN ELECTRIC TRANSMISSION FACILITIES- For purposes
of the 1st sentence of subparagraph (A), the operation or use of an electric
transmission facility by any person which is not a governmental unit shall
not be considered a private business use if--
`(i) the facility is placed in service on or after the date of the enactment
of this subparagraph and is owned by--
`(I) a State or political subdivision of a State, or any agency, authority,
or instrumentality of any of the foregoing providing electric service,
directly or indirectly to the public, or
`(II) a State or political subdivision of a State expressly authorized
under applicable State law effective on or after January 1, 2004,
to finance and own electric transmission facilities, and
`(ii) bonds for such facility are issued before the date which is 5
years after the date of the enactment of this subparagraph.'.
(b) Effective Date- The amendment made by this section shall apply to bonds
issued after the date of the enactment of this Act.
TITLE XI--RESTORE OUR DOMESTIC ENERGY WORKFORCE SCIENCE AND TECHNOLOGY EDUCATION
SEC. 1101. SHORT TITLE.
This title may be cited as the `Strengthening Americas Science and Technology
Education Act'.
SEC. 1102. POLICY.
It is the policy of the United States to maintain the human capital needed
to preserve and foster the economic, energy, and mineral resources security
of the United States. The Science and Technology programs that produce human
capital needed for the energy and mineral resources security of the United
States are national assets and shall be assisted with Federal funds to ensure
their continued health and existence.
SEC. 1103. MAINTAINING SCIENCE AND TECHNOLOGY EDUCATION PROGRAMS.
(a) The Secretary of the Interior (in this title referred to as the `Secretary')
shall administer this title and shall prescribe rules and regulations to carry
out its policies and provisions not later than 1 year after enactment.
(b) In support of the policy stated in section 2, the Secretary shall provide
research funds to schools, universities, and institutions to assist in maintaining
recognized programs in energy, petroleum, mining, and mineral engineering
education and research.
(c) All funds shall be directed only to recognized programs and shall be subject
to the conditions of this title.
(d) Research funded at recognized programs under this title shall include
studies and research to enhance basic science and engineering as well as studies
to provide proof of scientific or engineering concepts and studies to determine
scientific or engineering feasibility.
(e) The Secretary shall only provide funds to recognized programs, which for
the purposes of this title shall mean--
(1) an engineering program for energy, petroleum, chemical, mining, or mineral
engineering accredited on the date of enactment;
(2) a geological engineering or geophysical engineering that is accredited
on the date of enactment of this Act and which is focused on petroleum or
natural gas production, the production of mineral resources, and the development
of permanent underground workings as demonstrated by the curriculum and
the expertise of the existing faculty; or
(3) a program in geology or geophysics that the Secretary determines to
be acceptable under this title and that have undergraduate and graduate
programs of research and education in the geology and geophysics of conventional
or nonconventional energy, geothermal, metallic and nonmetallic deposits,
including industrial minerals, sand and gravel deposits.
(f) All recognized engineering programs must meet meeting the specific program
criteria, established by the member societies of ABET, Inc. of Baltimore Maryland.
In the absence of a nationally recognized accreditation program for the applied
geology and geophysics programs the Secretary shall request the Committee
created by this title to examine the program and the outcomes of the programs
to determine if it is appropriate to provide funding for the program.
(g) Each school, university, or institution receiving funds under this title
shall maintain the program for which the funds are provided for 10 years after
the date of the last receipt of such funds and take steps described in its
application for funding to increase the number of undergraduate students enrolled
in and completing the programs of study in petroleum, chemical, mining, geological,
geophysical, or mineral engineering, and geology and geophysics.
(h) The Secretary shall show particular consideration to minority serving
institutions with an established recognized program or that proposes to establish
a recognized program, including but not limited to assigning appropriate employees
to serve as mentors and adjunct faculty, transferring appropriate equipment
to the programs and allowing faculty or students at such institutions free
access to appropriate departmental training.
(i) Where appropriate, the Secretary may make funds available to consortia
to conduct projects of broad application that could not otherwise be undertaken,
including national and regional projects in geology or geophysics and engineering
as applied to petroleum, geothermal, mining, and mineral processing or beneficiation.
Provided, that funds granted to any consortium shall only be given to a single
eligible school with a recognized program which shall be responsible for distribution,
monitoring, and reporting on the activities of the consortium as required
by the Secretary.
SEC. 1104. FUNDS FOR SCHOLARSHIPS AND FELLOWSHIPS.
(a) The Secretary shall provide funds for the purpose of providing merit-based
scholarships for undergraduate education, graduate fellowships, and postdoctoral
fellowships at eligible schools.
(b) In awarding the Scholarships and fellowships authorized by this section
the Secretary shall give a preference for veterans and service members who
have received or will receive either the Afghanistan Campaign Medal or the
Iraq Campaign Medal as authorized by Public Law 108-234, and Executive Order
No. 13363.
(c) In order to receive a scholarship or a graduate fellowship, an individual
student must be a lawful permanent resident of the United States or a United
States citizen and must agree in writing to complete a course of studies and
receive a degree in petroleum, chemical, mining, geological, geophysical,
or mineral engineering, petroleum geology, geothermal geology, mining and
economic geology, petroleum and mining geophysics, or mineral economics in
a program recognized under this title.
(d) The regulations shall require that an individual, in order to retain a
scholarship or graduate fellowship, must continue in one of the course of
studies authorized by this section, must remain in good academic standing,
as determined by the school, institution, or university and must allow for
reinstatement of the scholarship or graduate fellowship by the Secretary,
upon the recommendation of the school or institution. Such regulations may
also provide for recovery of funds from an individual who fails to complete
any of the courses of study listed in subsection (c) of this section after
notice that such completion is a requirement of receipt funding under this
title. Students may change courses of study provided they remain within the
listing of programs in subsection (c).
(e) An individual granted a scholarship or fellowship with funds provided
under this title shall through their respective school, university, or institution,
advise the Director of the office established by this title of progress towards
completion of the course of studies and upon the awarding of the degree within
30 days after the award.
(f) To carry out this section, the schools, universities, and institutions
that are eligible to receive funding under this title shall be responsible
for enforcing the requirements of this section for scholarship or fellowship
students and shall return to the Secretary any funds recovered from an individual
under subsection (d). An institution seeking funds under this subsection shall
describe, in its application to the Secretary for funding, the number of students
that would be awarded scholarships or fellowships if the application is approved,
how such students would be selected, and how the provisions of this section
will be enforced.
SEC. 1105. USE OF FUNDS BY INSTITUTIONS.
(a) Grants for basic science and engineering studies and research shall not
require additional participation by funding partners. All other grants for
studies shall include participation by industry and may include funding from
other Federal agencies.
(b) No funds made available under this section shall be applied to the acquisition
by purchase or lease of any land or interests therein, or the rental, purchase,
construction, preservation, or repair of any building.
(c) Funding made available may be used with the express approval of the Secretary
for proposals to maintain or upgrade existing laboratories and laboratory
equipment, but such funds shall not be used for any university overhead expenses.
(d) Funding made available under this title may be used for maintaining and
upgrading mines and oil and gas drilling rigs owned by an eligible program
or the school in which the program is located that are used for undergraduate
and graduate training and worker safety training. All requests for funding
such mines and oil and gas drilling rigs must demonstrate that they have been
owned by the school for 5 years prior to the date of enactment.
(e) Each school shall have an officer appointed by its governing authority
who shall receive and account for all funds paid under this title and shall
make an annual report to the Secretary on or before the first day of September
of each year, on work accomplished and the status of projects underway, together
with a detailed statement of the amounts received under this title during
the preceding fiscal year, and of its disbursements on schedules prescribed
by the Secretary.
(f) The schools, universities, and institutions receiving funding under this
title shall make detailed reports to the Center on projects completed, in
progress, or planned with funds provided under this title. All such reports
shall be available to the public on not less than an annual basis through
the Center.
(g) All uses, products, processes, and other developments resulting from any
research, demonstration, or experiment funded in whole or in part under this
title shall be made available promptly to the general public, subject to exception
or limitation, if any, as the Secretary may find necessary in the interest
of national security, and subject to the applicable Federal law governing
patents.
SEC. 1106. ESTABLISHMENT OF A NATIONAL CENTER.
(a) There is established in the Department of the Interior an office to be
known as the National Science and Technology Education Center (hereafter in
this title referred to as the `Center') to administer the provisions of this
title.
(b) The Center shall answer directly to the Secretary and shall be located
at a site on or near the campus of a school, college or university with a
recognized program, to be determined by the Secretary after consultation with
the Committee and the receipt of public comments.
(c) There shall be a director of the Center who shall be a member of the Senior
Executive Service, provided further that the position of the director shall
be a career reserved position as defined in section 3132(a)(8) of title 5,
United States Code.
(d) The director is authorized to appoint a deputy director and to employ
such officers and employees as may be necessary to enable the Center to carry
out its functions.
(e) In carrying the Center's functions, the director shall provide professional
and administrative staff support for the Committee, including recordkeeping
and maintaining minutes of all Committee and subcommittee meetings, maintaining
accurate records of funds disbursed for all scholarship and fellowship grants,
research grants, and grants for career technical education purposes, preparing
any regulations required to implement this title, conducting site visits at
programs receiving funding under this title, and serving as a central repository
for reports and clearing house for public information on research funded by
this title.
(f) The director or an employee of the Center shall be present at each meeting
of the Committee or a subcommittee of the Committee.
(g) As needed the director shall ascertain whether the requirements of this
title have been met by recognized programs.
(h) Each employee or contractor of the Center and each member of the Committee
shall disclose to the Secretary any financial interests in or financial relationships
with schools, universities, institutions, or individuals receiving funds,
scholarships, or fellowships under this title.
(i) Any employee, contractor, or member of the Committee with a financial
relationship must recuse themselves from any recommendation or decision regarding
the awarding of funds, scholarships or fellowships or any review, report,
analysis, or investigation regarding compliance with the provisions of this
title by a school, university, institution, or any individual.
SEC. 1107. STAKEHOLDER COMMITTEE ON SCIENCE AND TECHNOLOGY EDUCATION.
(a) The Secretary shall appoint a Stakeholder Committee for Science and Technology
Education (referred to in this title as the `Committee') which shall be composed
of--
(1) the Assistant Secretary of the Interior responsible for land and minerals
management; and
(2) not more than 18 other persons who are knowledgeable in the fields of
energy, petroleum, geothermal, mining and mineral resources research, including
two university leaders from a school with at least one recognized program;
a community or technical college administrator, a tribal college administrator;
a career technical education educator; six representatives equally distributed
from the energy, mining, and aggregate industries; a working miner; a working
oilfield worker; a representative of the Interstate Oil and Gas Compact
Commission; a representative from the Interstate Mining Compact Commission;
a representative of the State geologists, and two representatives of the
general public. In making these appointments, the Secretary shall consult
with interested groups.
(b) The Chairman of the Committee may have present during meetings representatives
of Federal agencies with responsibility for energy and minerals resources
management, energy and mineral resource investigations, energy and mineral
commodity information, international trade in energy and mineral commodities,
mining safety regulation and mine safety research, and research into the development,
production, and utilization of energy and mineral commodities. These representatives
shall serve as technical advisors to the committee and shall have no voting
responsibilities.
(c) The Secretary shall consult with the Committee on policy matters relating
to carrying out this title and carefully consider its recommendations in such
matters.
(d) Committee members, other than officers or employees of Federal, State,
or local governments, shall be, for each day (including travel time) during
which they are performing Committee business, paid at a rate fixed by the
Secretary but not in excess of the daily equivalent of the maximum rate of
pay for level IV of the Executive Schedule under section 5136 of title 5,
United States Code, and shall be fully reimbursed for travel, subsistence,
and related expenses.
(e) The Assistant Secretary of the Interior responsible for Land and Minerals
management shall be the Chairman of the Committee. There shall also be a Vice
Chairman elected by the Committee from among the members, who shall perform
such duties as are determined to be appropriate by the committee, except that
the Chairman must personally preside at all meetings of the full Committee.
The Committee may organize itself into such subcommittees as the Committee
may deem appropriate.
(f) Following completion of the report required by section 385 of the Energy
Policy Act of 2005, the Committee shall consider the recommendations of the
report and shall formulate and recommend a national plan for utilizing the
fiscal resources provided under this title. The Committee shall submit such
plan to the Secretary for approval. Upon approval, the plan shall guide the
Secretary and the Committee in their actions under this title.
(g) The Committee shall make recommendations to the Secretary regarding both
the long term and short term viability of the faculty at schools with recognized
programs and may recommend the awarding of graduate fellowships and postdoctoral
fellowships to those students who declare their intent to seek roles as future
faculty at the domestic recognized programs.
SEC. 1108. CAREER TECHNICAL AND COMMUNITY COLLEGE EDUCATION.
(a) The Secretary shall provide grants to support sustaining the operation
or the development of programs in mining engineering technology, petroleum
engineering technology, industrial engineering technology, or industrial technology
that--
(1) are focused on technology and its use in energy and mineral production
and related maintenance, operational safety, or energy infrastructure protection
and security;
(2) prepare students for advanced or supervisory roles in the mining industry
or the petroleum industry; and
(3) grant either an associate's degree or a baccalaureate degree.
(b)(1) The Secretary shall provide grants to sustain the operation or the
development of programs, including joint apprenticeship programs authorized
by Federal law, university, college or community college programs, secondary
school vocational education programs, or career academy programs, that provide
training for individuals seeking to enter the geothermal, petroleum, mining,
or mineral mining industries.
(2) The Secretary shall give particular consideration to supporting programs
that provide training for a progressive career path in the industries listed
in subsection (b).
(3) The Secretary, after consultation with the Committee, may offer support
to programs that grant degrees or certificates in programs that provide training
in disciplines that provide essential support for the industries listed in
subsection (b), including those listed in subsection (c) of this section even
if those programs are not purposely designed to provide personnel for the
industries listed in subsection (b) of this section.
(c) The Secretary shall provide grants to support the operation or the development
of programs of program of career technical education at a secondary school,
offered cooperatively with a community college in one of the industrial sectors
of--
(1) agriculture, forestry, or fisheries;
(2) utilities, particularly power transmission and pipeline construction
and operations;
(3) maintenance and maintenance logistics;
(6) transportation and warehousing.
(d) Schools or institutions receiving funds under this section must show evidence
of an institutional commitment for the purposes of career technical education
and provide evidence that the school or institution has received or will receive
industry cooperation in the form of equipment, employee time, or donations
of funds to support the activities that are within the scope of this section.
(e) Schools seeking funds to support the operation of a program may initially
only use those funds for enhancing the instructional skills of teachers through
additional training and resources as will permit such teachers to enhance
their skills. After the teachers have achieved enhanced skills and meets an
appropriate standard as agreed to by local authorities in consultation with
the Secretary the funds be used to purchase classroom and laboratory equipment.
(f) Schools seeking funds to support the development of a new program shall
use the funds to support the purchase of classroom and laboratory equipment
and to supplement teacher salaries to encourage the hiring of highly qualified
teachers.
(g) Schools or institutions receiving funds under this section must agree
to maintain the programs for which the funding is sought for a period of 10
years beginning on the date the school or institution receives such funds,
unless the Secretary finds that a shorter period of time is appropriate for
the local labor market or is required by State authorities.
(h) Schools or institutions receiving funds under this section may combine
these funds with State funds, and other Federal funds where allowed by law,
to carry out programs described in this section, however the use of the funds
received under this section must be reported to the Secretary not less than
annually.
(i) The Secretary shall seek the advice of the Committee in determining the
criteria used to carry out this section.
SEC. 1109. NUCLEAR SCIENCE AND ENGINEERING SCHOLARSHIPS.
(a) Purpose- It is the purpose of this section to authorize scholarships funded
by the Department of Energy for undergraduate education in nuclear science
and nuclear engineering.
(b) Scholarship Program Authorized-
(1) IN GENERAL- The Secretary of Energy shall award not less than 65 grants
per year to eligible undergraduate institutions to support scholarships
for students majoring in nuclear science or nuclear engineering.
(2) APPLICATION- An eligible undergraduate institution that desires to receive
a grant under this section shall submit to the Secretary of Energy an application
at such time, in such manner, and accompanied by such information as the
Secretary may require.
(3) DURATION AND AMOUNT- A grant under this section shall be 4 years in
duration. An eligible undergraduate institution that receives a grant under
this section shall receive $100,000 for each year of the grant period.
(4) USE OF FUNDS- An eligible undergraduate institution that receives a
grant under this section shall use the grant funds for the awarding of scholarships
in nuclear science or nuclear engineering.
SEC. 1110. NUCLEAR WORKFORCE DEVELOPMENT.
Not later than 120 days after the date of enactment of this Act, the Secretary
of Energy, in consultation with the Secretary of Labor, shall provide to Congress
recommendations for developing a robust nuclear workforce within the United
States.
SEC. 1111. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this title 5 percent of
all funds available within the American Energy Trust Fund for each of fiscal
years 2009 through 2019 and all funds that are authorized shall remain available
until expended.
TITLE XII--TAPPING AMERICA'S INGENUITY AND CREATIVITY
SEC. 1201. DEFINITIONS.
(1) ADMINISTERING ENTITY- The term `administering entity' means the entity
with which the Secretary enters into an agreement under section 1204(c).
(2) DEPARTMENT- The term `Department' means the Department of Energy.
(3) SECRETARY- The term `Secretary' means the Secretary of Energy.
SEC. 1202. STATEMENT OF POLICY.
It is the policy of the United States to provide incentives to encourage the
development and implementation of innovative energy technologies and new energy
sources that will reduce our reliance on foreign energy.
SEC. 1203. PRIZE AUTHORITY.
(a) In General- The Secretary shall carry out a program to competitively award
cash prizes in conformity with this title to advance the research, development,
demonstration, and commercial application of innovative energy technologies
and new energy sources.
(b) Advertising and Solicitation of Competitors-
(1) ADVERTISING- The Secretary shall widely advertise prize competitions
to encourage broad participation in the program carried out under subsection
(a), including individuals, universities, communities, and large and small
businesses.
(2) ANNOUNCEMENT THROUGH FEDERAL REGISTER NOTICE- The Secretary shall announce
each prize competition by publishing a notice in the Federal Register. This
notice shall include essential elements of the competition such as the subject
of the competition, the duration of the competition, the eligibility requirements
for participation in the competition, the process for participants to register
for the competition, the amount of the prize, and the criteria for awarding
the prize.
(c) Administering the Competition- The Secretary may enter into an agreement
with a private, nonprofit entity to administer the prize competitions, subject
to the provisions of this title. The administering entity shall perform the
following functions:
(1) Advertise the competition and its results.
(2) Raise funds from private entities and individuals to pay for administrative
costs and cash prizes.
(3) Develop, in consultation with and subject to the final approval of the
Secretary, criteria to select winners based upon the goal of safely and
adequately storing nuclear used fuel.
(4) Determine, in consultation with and subject to the final approval of
the Secretary, the appropriate amount of the awards.
(5) Protect against the administering entity's unauthorized use or disclosure
of a registered participant's intellectual property, trade secrets, and
confidential business information. Any information properly identified as
trade secrets or confidential business information that is submitted by
a participant as part of a competitive program under this title may be withheld
from public disclosure.
(6) Develop and promulgate sufficient rules to define the parameters of
designing and proposing innovative energy technologies and new energy sources
with input from industry, citizens, and corporations familiar with such
activities.
(d) Funding Sources- Prizes under this title may consist of Federal appropriated
funds, funds provided by the administering entity, or funds raised through
grants or donations. The Secretary may accept funds from other Federal agencies
for such cash prizes and, notwithstanding section 3302(b) of title 31, United
States Code, may use such funds for the cash prize program. Other than publication
of the names of prize sponsors, the Secretary may not give any special consideration
to any private sector entity or individual in return for a donation to the
Secretary or administering entity.
(e) Announcement of Prizes- The Secretary may not publish a notice required
by subsection (b)(2) until all the funds needed to pay out the announced amount
of the prize have been appropriated to the Department or the Department has
received from the administering entity a written commitment to provide all
necessary funds.
SEC. 1204. ELIGIBILITY.
To be eligible to win a prize under this title, an individual or entity--
(1) shall notify the administering entity of intent to submit ideas and
intent to collect the prize upon selection;
(2) shall comply with all the requirements stated in the Federal Register
notice required under section 1203(b)(2);
(3) in the case of a private entity, shall be incorporated in and maintain
a primary place of business in the United States, and in the case of an
individual, whether participating singly or in a group, shall be a citizen
of the United States;
(4) shall not be a Federal entity, a Federal employee acting within the
scope of his or her employment, or an employee of a national laboratory
acting within the scope of employment;
(5) shall not use Federal funding or other Federal resources to compete
for the prize; and
(6) shall not be an entity acting on behalf of any foreign government or
agent.
SEC. 1205. INTELLECTUAL PROPERTY.
The Federal Government shall not, by virtue of offering or awarding a prize
under this title, be entitled to any intellectual property rights derived
as a consequence of, or in direct relation to, the participation by a registered
participant in a competition authorized by this title. This section shall
not be construed to prevent the Federal Government from negotiating a license
for the use of intellectual property developed for a prize competition under
this title. The Federal Government may seek assurances that technologies for
which prizes are awarded under this title are offered for commercialization
in the event an award recipient does not take, or is not expected to take
within a reasonable time, effective steps to achieve practical application
of the technology.
SEC. 1206. WAIVER OF LIABILITY.
The Secretary may require registered participants to waive claims against
the Federal Government and the administering entity (except claims for willful
misconduct) for any injury, death, damage, or loss of property, revenue, or
profits arising from the registered participants' participation in a competition
under this title. The Secretary shall give notice of any waiver required under
this section in the notice required by section 1203(b)(2). The Secretary may
not require a registered participant to waive claims against the administering
entity arising out of the unauthorized use or disclosure by the administering
entity of the registered participant's intellectual property, trade secrets,
or confidential business information.
SEC. 1207. AUTHORIZATION OF APPROPRIATIONS.
(a) Awards- 40 percent of amounts in the American Energy Trust Fund shall
be available without further appropriation to carry out specified provisions
of this section.
(b) Treatment of Awards- Amounts received pursuant to an award under this
title may not be taxed by any Federal, State, or local authority.
(c) Administration- In addition to the amounts authorized under subsection
(a), there are authorized to be appropriated to the Secretary for each of
fiscal years 2009 through 2020 $2,000,000 for the administrative costs of
carrying out this title.
(d) Carryover of Funds- Funds appropriated for prize awards under this title
shall remain available until expended and may be transferred, reprogrammed,
or expended for other purposes only after the expiration of 11 fiscal years
after the fiscal year for which the funds were originally appropriated. No
provision in this title permits obligation or payment of funds in violation
of section 1341 of title 31, United States Code.
SEC. 1208. NEXT GENERATION AUTOMOBILE PRIZE PROGRAM.
The Secretary of Energy shall establish a program to award a prize in the
amount of $500,000,000 to the first automobile manufacturer incorporated in
the United States to manufacture and sell in the United States 50,000 midsized
sedan automobiles which operate on gasoline and can travel 100 miles per gallon.
SEC. 1209. ADVANCED BATTERY MANUFACTURING INCENTIVE PROGRAM.
(a) Definitions- In this section:
(1) ADVANCED BATTERY- The term `advanced battery' means an electrical storage
device suitable for vehicle applications.
(2) ENGINEERING INTEGRATION COSTS- The term `engineering integration costs'
includes the cost of engineering tasks relating to--
(A) incorporation of qualifying components into the design of advanced
batteries; and
(B) design of tooling and equipment and developing manufacturing processes
and material suppliers for production facilities that produce qualifying
components or advanced batteries.
(b) Advanced Battery Manufacturing Facility- The Secretary shall provide facility
funding awards under this section to advanced battery manufacturers to pay
not more than 30 percent of the cost of reequipping, expanding, or establishing
a manufacturing facility in the United States to produce advanced batteries.
(c) Period of Availability- An award under subsection (b) shall apply to--
(1) facilities and equipment placed in service before December 30, 2020;
and
(2) engineering integration costs incurred during the period beginning on
the date of enactment of this Act and ending on December 30, 2020.
(1) IN GENERAL- Not later than 1 year after the date of enactment of this
title, and subject to the availability of appropriated funds, the Secretary
shall carry out a program to provide a total of not more than $100,000,000
in loans to eligible individuals and entities (as determined by the Secretary)
for the costs of activities described in subsection (b).
(2) SELECTION OF ELIGIBLE PROJECTS- The Secretary shall select eligible
projects to receive loans under this subsection in cases in which, as determined
by the Secretary, the award recipient--
(A) is financially viable without the receipt of additional Federal funding
associated with the proposed project;
(B) will provide sufficient information to the Secretary for the Secretary
to ensure that the qualified investment is expended efficiently and effectively;
and
(C) has met such other criteria as may be established and published by
the Secretary.
(3) RATES, TERMS, AND REPAYMENT OF LOANS- A loan provided under this subsection--
(A) shall have an interest rate that, as of the date on which the loan
is made, is equal to the cost of funds to the Department of the Treasury
for obligations of comparable maturity;
(B) shall have a term equal to the lesser of--
(i) the projected life, in years, of the eligible project to be carried
out using funds from the loan, as determined by the Secretary; and
(C) may be subject to a deferral in repayment for not more than 5 years
after the date on which the eligible project carried out using funds from
the loan first begins operations, as determined by the Secretary; and
(D) shall be made by the Federal Financing Bank.
(e) Fees- The cost of administering a loan made under this section shall not
exceed $100,000.
(f) Set Aside for Small Manufacturers-
(1) DEFINITION OF COVERED FIRM- In this subsection, the term `covered firm'
means a firm that--
(A) employs fewer than 500 individuals; and
(B) manufactures automobiles or components of automobiles.
(2) SET ASIDE- Of the amount of funds used to provide awards for each fiscal
year under subsection (b), the Secretary shall use not less than 10 percent
to provide awards to covered firms or consortia led by a covered firm.
(g) Authorization of Appropriations- There are authorized to be appropriated
from the American Energy Trust Fund such sums as are necessary to carry out
this section for each of fiscal years 2009 through 2013.
END
