[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2436 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2436

To provide secure energy supplies for the people of the United States, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 10, 2001

 Mr. Hansen (for himself, Mr. Young of Alaska, Mr. Tauzin, Mrs. Cubin, 
 Mr. Thornberry, Mr. Otter, and Mr. Calvert) introduced the following 
bill; which was referred to the Committee on Resources, and in addition 
      to the Committee on Energy and Commerce, 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 secure energy supplies for the people of the United States, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Energy Security Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
      TITLE I--GENERAL PROTECTIONS FOR ENERGY SUPPLY AND SECURITY

Sec. 101. Study of existing rights-of-way on Federal lands to determine 
                            capability to support new pipelines or 
                            other transmission facilities.
Sec. 102. Inventory of energy production potential of all Federal 
                            public lands.
Sec. 103. Review of regulations to eliminate barriers to emerging 
                            energy technology.
Sec. 104. Interagency agreement on environmental review of interstate 
                            natural gas pipeline projects.
                   TITLE II--OIL AND GAS DEVELOPMENT

                    Subtitle A--Offshore Oil and Gas

Sec. 201. Short title.
Sec. 202. Lease sales in Western and Central Planning Area of the Gulf 
                            of Mexico.
Sec. 203. Savings clause.
Sec. 204. Analysis of Gulf of Mexico field size distribution, 
                            international competitiveness, and 
                            incentives for development.
       Subtitle B--Improvements to Federal Oil and Gas Management

Sec. 221. Short title.
Sec. 222. Study of impediments to efficient lease operations.
Sec. 223. Elimination of unwarranted denials and stays.
Sec. 224. Limitations on cost recovery for applications.
Sec. 225. Consultation with Secretary of Agriculture.
                       Subtitle C--Miscellaneous

Sec. 231. Offshore subsalt development.
Sec. 232. Program on oil and gas royalties in kind.
Sec. 233. Oil and Gas Technology Transfer Centers.
Sec. 234. Marginal well production incentives.
Sec. 235. Reimbursement for costs of NEPA analyses, documentation, and 
                            studies.
                TITLE III--GEOTHERMAL ENERGY DEVELOPMENT

Sec. 301. Royalty reduction and relief.
Sec. 302. Exemption from royalties for direct use of low temperature 
                            geothermal energy resources.
Sec. 303. Amendments relating to leasing on Forest Service lands.
Sec. 304. Deadline for determination on pending noncompetitive lease 
                            applications.
Sec. 305. Opening of public lands under military jurisdiction.
Sec. 306. Application of amendments.
Sec. 307. Review and report to Congress.
Sec. 308. Reimbursement for costs of NEPA analyses, documentation, and 
                            studies.
                          TITLE IV--HYDROPOWER

Sec. 401. Study and report on increasing electric power production 
                            capability of existing facilities.
Sec. 402. Installation of powerformer at Folsom power plant, 
                            California.
Sec. 403. Conservation through pump modernization.
Sec. 404. Study and implementation of increased operational 
                            efficiencies in hydroelectric power 
                            projects.
Sec. 405. Shift of project loads to off-peak periods.
             TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY

Sec. 501. Short title.
Sec. 502. Definitions.
Sec. 503. Leasing program for lands within the Coastal Plain.
Sec. 504. Lease sales.
Sec. 505. Grant of leases by the Secretary.
Sec. 506. Lease terms and conditions.
Sec. 507. Coastal Plain environmental protection.
Sec. 508. Expedited judicial review.
Sec. 509. Rights-of-way across the Coastal Plain.
Sec. 510. Conveyance.
Sec. 511. Local government impact aid and community service assistance.

      TITLE I--GENERAL PROTECTIONS FOR ENERGY SUPPLY AND SECURITY

SEC. 101. STUDY OF EXISTING RIGHTS-OF-WAY ON FEDERAL LANDS TO DETERMINE 
              CAPABILITY TO SUPPORT NEW PIPELINES OR OTHER TRANSMISSION 
              FACILITIES.

    (a) In General.--Within one year after the date of enactment of 
this Act, the head of each Federal agency that has authorized a right-
of-way across Federal lands for transportation of energy supplies or 
transmission of electricity shall review each such right-of-way and 
submit a report to the Secretary of Energy and the Chairman of the 
Federal Energy Regulatory Commission regarding--
            (1) whether the right-of-way can be used to support new or 
        additional capacity; and
            (2) what modifications or other changes, if any, would be 
        necessary to accommodate such additional capacity.
    (b) Consultations and Considerations.--In performing the review, 
the head of each agency shall--
            (1) consult with agencies of State or local units of 
        government as appropriate; and
            (2) consider whether safety or other concerns related to 
        current uses might preclude the availability of a right-of-way 
        for additional or new transportation or transmission 
        facilities, and set forth those considerations in the report.

SEC. 102. INVENTORY OF ENERGY PRODUCTION POTENTIAL OF ALL FEDERAL 
              PUBLIC LANDS.

    (a) Inventory Requirement.--The Secretary of the Interior, in 
consultation with the Secretary of Agriculture and the Secretary of 
Energy, shall conduct an inventory of the energy production potential 
of all Federal public lands other than national park lands and lands in 
any wilderness area, with respect to wind, solar, coal, and geothermal 
power production.
    (b) Limitations.--
            (1) In general.--The Secretary shall not include in the 
        inventory under this section the matters to be identified in 
        the inventory under section 604 of the Energy Act of 2000 (42 
        U.S.C. 6217).
            (2) Wind and solar power.--The inventory under this 
        section--
                    (A) with respect to wind power production shall be 
                limited to sites having a mean average wind speed--
                            (i) exceeding 12.5 miles per hour at a 
                        height of 33 feet; and
                            (ii) exceeding 15.7 miles per hour at a 
                        height of 164 feet;
                    (B) with respect to solar power production--
                            (i) shall be limited to areas rated as 
                        receiving 450 watts per square meter or 
                        greater; and
                            (ii) may exclude Alaska.
    (b) Examination of Restrictions and Impediments.--The inventory 
shall identify the extent and nature of any restrictions or impediments 
to the development of such energy production potential.
    (c) Geothermal Power.--The inventory shall include an update of the 
1978 Assessment of Geothermal Resources by the United States Geological 
Survey.
    (d) Completion and Updating.--The Secretary--
            (1) shall complete the inventory by not later than 2 years 
        after the date of the enactment of this Act; and
            (2) shall update the inventory regularly thereafter.
    (e) Reports.--The Secretary shall submit to the Committee on 
Resources of the House of Representatives and to the Committee on 
Energy and Natural Resources of the Senate and make publicly 
available--
            (1) a report containing the inventory under this section, 
        by not later than 2 years after the effective date of this 
        section; and
            (2) each update of such inventory.

SEC. 103. REVIEW OF REGULATIONS TO ELIMINATE BARRIERS TO EMERGING 
              ENERGY TECHNOLOGY.

    (a) In General.--Each Federal agency shall carry out a review of 
its regulations and standards to determine those that act as a barrier 
to market entry for emerging energy-efficient technologies, including 
fuel cells, combined heat and power, and distributed generation 
(including small-scale renewable energy).
    (b) Report to Congress.--No later than 18 months after date of 
enactment of this Act, each agency shall provide a report to the 
Congress and the President detailing all regulatory barriers to 
emerging energy-efficient technologies, along with actions the agency 
intends to take, or has taken, to remove such barriers.
    (c) Periodic Review.--Each agency shall subsequently review its 
regulations and standards in this manner no less frequently than every 
5 years, and report their findings to the Congress and the President. 
Such reviews shall include a detailed analysis of all agency actions 
taken to remove existing barriers to emerging energy technologies.

SEC. 104. INTERAGENCY AGREEMENT ON ENVIRONMENTAL REVIEW OF INTERSTATE 
              NATURAL GAS PIPELINE PROJECTS.

    (a) In General.--The Secretary of Energy, in coordination with the 
Federal Energy Regulatory Commission, shall establish an administrative 
interagency task force to develop an interagency agreement to expedite 
and facilitate the environmental review and permitting of interstate 
natural gas pipeline projects.
    (b) Task Force Members.--The task force shall include a 
representative of each of the Bureau of Land Management, the United 
States Fish and Wildlife Service, the Army Corps of Engineers, the 
Forest Service, the Environmental Protection Agency, the Advisory 
Council on Historic Preservation, and such other agencies as the 
Secretary of Energy and the Federal Energy Regulatory Commission 
consider appropriate.
    (c) Terms of Agreement.--The interagency agreement shall require 
that agencies complete their review of interstate pipeline projects 
within a specific period of time after referral of the matter by the 
Federal Energy Regulatory Commission.
    (d) Submittal of Agreement.--The Secretary of Energy shall submit a 
final interagency agreement under this section to the Congress by not 
later than 6 months after the effective date of this section.

                   TITLE II--OIL AND GAS DEVELOPMENT

                    Subtitle A--Offshore Oil and Gas

SEC. 201. SHORT TITLE.

    This subtitle may be referred to as the ``Royalty Relief Extension 
Act of 2001''.

SEC. 202. LEASE SALES IN WESTERN AND CENTRAL PLANNING AREA OF THE GULF 
              OF MEXICO.

    (a) In General.--For all tracts located in water depths of greater 
than 200 meters in the Western and Central Planning Area of the Gulf of 
Mexico, including that portion of the Eastern Planning Area of the Gulf 
of Mexico encompassing whole lease blocks lying west of 87 degrees, 30 
minutes West longitude, any oil or gas lease sale under the Outer 
Continental Shelf Lands Act occurring within 2 years after the date of 
enactment of this Act shall use the bidding system authorized in 
section 8(a)(1)(H) of the Outer Continental Shelf Lands Act (30 U.S.C. 
1337(a)(1)(H)), except that the suspension of royalties shall be set at 
a volume of not less than the following:
            (1) 17.5 million barrels of oil equivalent for fields in 
        water depths of 200 to 400 meters.
            (2) 52.5 million barrels of oil equivalent for fields in 
        400 to 800 meters of water.
            (3) 9 million barrels of oil equivalent for each lease in 
        water depths of 800 to 1,600 meters.
            (4) 12 million barrels of oil equivalent for each lease in 
        water depths greater than 1,600 meters.
    (b) Relationship to Existing Authority.--Except as expressly 
provided in this section, nothing in this section is intended to limit 
the authority of the Secretary of the Interior under the Outer 
Continental Shelf Lands Act (43 U.S.C. 1301 et seq.) to provide royalty 
suspension.

SEC. 203. SAVINGS CLAUSE.

    Nothing in this subtitle shall be construed to affect any offshore 
pre-leasing, leasing, or development moratorium, including any 
moratorium applicable to the Eastern Planning Area of the Gulf of 
Mexico located off the Gulf Coast of Florida.

SEC. 204. ANALYSIS OF GULF OF MEXICO FIELD SIZE DISTRIBUTION, 
              INTERNATIONAL COMPETITIVENESS, AND INCENTIVES FOR 
              DEVELOPMENT.

    (a) In General.--The Secretary of the Interior and the Secretary of 
Energy shall enter into appropriate arrangements with the National 
Academy of Sciences to commission the Academy to perform the following:
            (1) Conduct an analysis and review of existing Gulf of 
        Mexico oil and natural gas resource assessments, including--
                    (A) analysis and review of assessments recently 
                performed by the Minerals Management Service, the 1999 
                National Petroleum Council Gas Study, the Department of 
                Energy's Offshore Marginal Property Study, and the 
                Advanced Resources International, Inc. Deepwater Gulf 
                of Mexico model; and
                    (B) evaluation and comparison of the accuracy of 
                assumptions of the existing assessments with respect to 
                resource field size distribution, hydrocarbon 
                potential, and scenarios for leasing, exploration, and 
                development.
            (2) Evaluate the lease terms and conditions offered by the 
        Minerals Management Service for Lease Sale 178, and compare the 
        financial incentives offered by such terms and conditions to 
        financial incentives offered by the terms and conditions that 
        apply under leases for other offshore areas that are competing 
        for the same limited offshore oil and gas exploration and 
        development capital, including offshore areas of West Africa 
        and Brazil.
            (3) Recommend what level of incentives for all water depths 
        are appropriate in order to ensure that the United States 
        optimizes the domestic supply of oil and natural gas from the 
        offshore areas of the Gulf of Mexico that are not subject to 
        current leasing moratoria. Recommendations under this paragraph 
        should be made in the context of the importance of the oil and 
        natural gas resources of the Gulf of Mexico to the future 
        energy and economic needs of the United States.
    (b) Report.--Not later than 180 days after the date of enactment of 
this Act, the Secretary of the Interior shall submit a report to the 
Committee on Resources in the House of Representatives and the 
Committee on Energy and Natural Resources in the Senate, summarizing 
the findings of the National Academy of Sciences pursuant to subsection 
(a) and providing recommendations of the Secretary for new policies or 
other actions that could help to further increase oil and natural gas 
production from the Gulf of Mexico.

       Subtitle B--Improvements to Federal Oil and Gas Management

SEC. 221. SHORT TITLE.

    This subtitle may be cited as the ``Federal Oil and Gas Lease 
Management Improvement Demonstration Program Act of 2001''.

SEC. 222. STUDY OF IMPEDIMENTS TO EFFICIENT LEASE OPERATIONS.

    (a) In General.--The Secretary of the Interior and the Secretary of 
Agriculture shall jointly undertake a study of the impediments to 
efficient oil and gas leasing and operations on Federal onshore lands 
in order to identify means by which unnecessary impediments to the 
expeditious exploration and production of oil and natural gas on such 
lands can be removed.
    (b) Contents.--The study under subsection (a) shall include the 
following:
            (1) A review of the process by which Federal land managers 
        accept or reject an offer to lease, including the timeframes in 
        which such offers are acted upon, the reasons for any delays in 
        acting upon such offers, and any recommendations for expediting 
        the response to such offers.
            (2) A review of the approval process for applications for 
        permits to drill, including the timeframes in which such 
        applications are approved, the impact of compliance with other 
        Federal laws on such timeframes, any other reasons for delays 
        in making such approvals, and any recommendations for 
        expediting such approvals.
            (3) A review of the approval process for surface use plans 
        of operation, including the timeframes in which such 
        applications are approved, the impact of compliance with other 
        Federal laws on such timeframes, any other reasons for delays 
        in making such approvals, and any recommendations for 
        expediting such approvals.
            (4) A review of the process for administrative appeal of 
        decisions or orders of officers or employees of the Bureau of 
        Land Management with respect to a Federal oil or gas lease, 
        including the timeframes in which such appeals are heard and 
        decided, any reasons for delays in hearing or deciding such 
        appeals, and any recommendations for expediting the appeals 
        process.
    (c) Report.--The Secretaries shall report the findings and 
recommendations resulting from the study required by this section to 
the Committee on Resources of the House of Representatives and to the 
Committee on Energy and Natural Resources of the Senate no later than 6 
months after the date of the enactment of this Act.

SEC. 223. ELIMINATION OF UNWARRANTED DENIALS AND STAYS.

    (a) In General.--The Secretary shall ensure that unwarranted 
denials and stays of lease issuance and unwarranted restrictions on 
lease operations are eliminated from the administration of oil and 
natural gas leasing on Federal land.
    (b) Land Designated for Multiple Use.--Federal land available for 
oil and natural gas leasing under any Bureau of Land Management 
resource management plan or Forest Service leasing analysis shall be 
available without lease stipulations more stringent than restrictions 
on surface use and operations imposed under the laws (including 
regulations) of the oil and natural gas conservation authority of the 
State in which the lands are located, unless the Secretary includes in 
the decision approving the management plan or leasing analysis or in 
the Secretary's acceptance of an offer to lease a written explanation 
why more stringent stipulations are warranted.
    (c) Rejection of Offer To Lease.--
            (1) In general.--If the Secretary rejects an offer to lease 
        Federal lands for oil or natural gas development on the ground 
        that the land is unavailable for oil and natural gas leasing, 
        the Secretary shall provide a written, detailed explanation of 
        the reasons the land is unavailable for leasing.
            (2) Previous resource management decision.--If the 
        determination of unavailability is based on a previous resource 
        management decision, the explanation shall include a careful 
        assessment of whether the reasons underlying the previous 
        decision are still persuasive.
            (3) Segregation of available land from unavailable land.--
        The Secretary may not reject an offer to lease Federal land for 
        oil and natural gas development that is available for such 
        leasing on the ground that the offer includes land unavailable 
        for leasing. The Secretary shall segregate available land from 
        unavailable land, on the offeror's request following notice by 
        the Secretary, before acting on the offer to lease.
    (d) Disapproval or Required Modification of Surface Use Plans of 
Operations and Application for Permit To Drill.--The Secretary shall 
provide a written, detailed explanation of the reasons for disapproving 
or requiring modifications of any surface use plan of operations or 
application for permit to drill with respect to oil or natural gas 
development on Federal lands.

SEC. 224. LIMITATION ON COST RECOVERY FOR APPLICATIONS.

    Notwithstanding sections 304 and 504 of the Federal Land Policy and 
Management Act of 1976 (43 U.S.C. 1734, 1764) and section 9701 of title 
31, United States Code, the Secretary shall not recover the Secretary's 
costs with respect to applications and other documents relating to oil 
and gas leases.

SEC. 225. CONSULTATION WITH SECRETARY OF AGRICULTURE.

    Section 17(h) of the Mineral Leasing Act (30 U.S.C. 226(h)) is 
amended to read as follows:
    ``(h) In issuing any lease on National Forest System lands reserved 
from the public domain, the Secretary of the Interior shall consult 
with the Secretary of Agriculture in determining stipulations on 
surface use under the lease.

                       Subtitle C--Miscellaneous

SEC. 231. OFFSHORE SUBSALT DEVELOPMENT.

    Section 5 of the Outer Continental Shelf Lands Act of 1953 (43 
U.S.C. 1334) is amended by adding at the end the following:
    ``(k) Suspension of Operations for Subsalt Exploration.--
Notwithstanding any other provision of law or regulation, to prevent 
waste caused by the drilling of unnecessary wells and to facilitate the 
discovery of additional hydrocarbon reserves, the Secretary may grant a 
request for a suspension of operations under any lease to allow the 
reprocessing and reinterpretation of geophysical data to identify and 
define drilling objectives beneath allocthonus salt sheets.''.

SEC. 232. PROGRAM ON OIL AND GAS ROYALTIES IN KIND.

    (a) Applicability of Section.--Notwithstanding any other provision 
of law, the provisions of this section shall apply to all royalty in 
kind accepted by the Secretary of the Interior under any Federal oil or 
gas lease or permit under section 36 of the Mineral Leasing Act (30 
U.S.C. 192), section 27 of the Outer Continental Shelf Lands Act (43 
U.S.C. 1353), or any other mineral leasing law, in the period beginning 
on the date of enactment of this Act through September 30, 2006.
    (b) Terms and Conditions.--All royalty accruing to the United 
States under any Federal oil or gas lease or permit under the Mineral 
Leasing Act (30 U.S.C. 181 et seq.) or the Outer Continental Shelf 
Lands Act (43 U.S.C. 1331 et seq.) shall, on the demand of the 
Secretary of the Interior, be paid in oil or gas. If the Secretary of 
the Interior makes such a demand, the following provisions apply to 
such payment:
            (1) Delivery by, or on behalf of, the lessee of the royalty 
        amount and quality due under the lease satisfies the lessee's 
        royalty obligation for the amount delivered, except that 
        transportation and processing reimbursements paid to, or 
        deductions claimed by, the lessee shall be subject to review 
        and audit.
            (2) Royalty production shall be placed in marketable 
        condition by the lessee at no cost to the United States.
            (3) The Secretary of the Interior may--
                    (A) sell or otherwise dispose of any royalty oil or 
                gas taken in kind for not less than the market price; 
                and
                    (B) transport or process any oil or gas royalty 
                taken in kind.
            (4) The Secretary of the Interior may, notwithstanding 
        section 3302 of title 31, United States Code, retain and use a 
        portion of the revenues from the sale of oil and gas royalties 
        taken in kind that otherwise would be deposited to 
        miscellaneous receipts, without regard to fiscal year 
        limitation, or may use royalty production, to pay the cost of--
                    (A) transporting the oil or gas,
                    (B) processing the gas, or
                    (C) disposing of the oil or gas.
            (5) The Secretary may not use revenues from the sale of oil 
        and gas royalties taken in kind to pay for personnel, travel, 
        or other administrative costs of the Federal Government.
    (c) Reimbursement of Cost.--If the lessee, pursuant to an agreement 
with the United States or as provided in the lease, processes the 
royalty gas or delivers the royalty oil or gas at a point not on or 
adjacent to the lease area, the Secretary of the Interior shall--
            (1) reimburse the lessee for the reasonable costs of 
        transportation (not including gathering) from the lease to the 
        point of delivery or for processing costs; or
            (2) at the discretion of the Secretary of the Interior, 
        allow the lessee to deduct such transportation or processing 
        costs in reporting and paying royalties in value for other 
        Federal oil and gas leases.
    (d) Benefit to the United States Required.--The Secretary may 
receive oil or gas royalties in kind only if the Secretary determines 
that receiving such royalties provides benefits to the United States 
greater than or equal to those that would be realized under a 
comparable royalty in value program.
    (e) Report to Congress.--For each of the fiscal years 2002 through 
2006 in which the United States takes oil or gas royalties in kind from 
production in any State or from the Outer Continental Shelf, excluding 
royalties taken in kind and sold to refineries under subsection (h), 
the Secretary of the Interior shall provide a report to the Congress 
describing--
            (1) the methodology or methodologies used by the Secretary 
        to determine compliance with subsection (d), including 
        performance standards for comparing amounts received by the 
        United States derived from such royalties in kind to amounts 
        likely to have been received had royalties been taken in value;
            (2) an explanation of the evaluation that led the Secretary 
        to take royalties in kind from a lease or group of leases, 
        including the expected revenue effect of taking royalties in 
        kind;
            (3) actual amounts received by the United States derived 
        from taking royalties in kind, and costs and savings incurred 
        by the United States associated with taking royalties in kind; 
        and
            (4) an evaluation of other relevant public benefits or 
        detriments associated with taking royalties in kind.
    (f) Deduction of Expenses.--
            (1) In general.--Before making payments under section 35 of 
        the Mineral Leasing Act (30 U.S.C. 191) or section 8(g) of the 
        Outer Continental Shelf Lands Act (30 U.S.C. 1337(g)) of 
        revenues derived from the sale of royalty production taken in 
        kind from a lease, the Secretary of the Interior shall deduct 
        amounts paid or deducted under subsections (b)(4) and (c), and 
        shall deposit such amounts to miscellaneous receipts.
            (2) Accounting for deductions.--If the Secretary of the 
        Interior allows the lessee to deduct transportation or 
        processing costs under subsection (c), the Secretary may not 
        reduce any payments to recipients of revenues derived from any 
        other Federal oil and gas lease as a consequence of that 
        deduction.
    (g) Consultation With States.--The Secretary of the Interior--
            (1) shall consult with a State before conducting a royalty 
        in kind program under this title within the State, and may 
        delegate management of any portion of the Federal royalty in 
        kind program to such State except as otherwise prohibited by 
        Federal law; and
            (2) shall consult annually with any State from which 
        Federal oil or gas royalty is being taken in kind to ensure to 
        the maximum extent practicable that the royalty in kind program 
        provides revenues to the State greater than or equal to those 
        which would be realized under a comparable royalty in value 
        program.
    (h) Provisions for Small Refineries.--
            (1) Preference.--If the Secretary of the Interior 
        determines that sufficient supplies of crude oil are not 
        available in the open market to refineries not having their own 
        source of supply for crude oil, the Secretary may grant 
        preference to such refineries in the sale of any royalty oil 
        accruing or reserved to the United States under Federal oil and 
        gas leases issued under any mineral leasing law, for processing 
        or use in such refineries at private sale at not less than the 
        market price.
            (2) Proration among refineries in production area.--In 
        disposing of oil under this subsection, the Secretary of the 
        Interior may, at the discretion of the Secretary, prorate such 
        oil among such refineries in the area in which the oil is 
        produced.
    (i) Disposition to Federal Agencies.--
            (1) Onshore royalty.--Any royalty oil or gas taken by the 
        Secretary in kind from onshore oil and gas leases may be sold 
        at not less than the market price to any department or agency 
        of the United States.
            (2) Offshore royalty.--Any royalty oil or gas taken in kind 
        from Federal oil and gas leases on the Outer Continental Shelf 
        may be disposed of only under section 27 of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1353).
    (j) Preference for Federal Low-Income Energy Assistance Programs.--
In disposing of royalty oil or gas taken in kind under this section, 
the Secretary may grant a preference to any person, including any State 
or Federal agency, for the purpose of providing additional resources to 
any Federal low-income energy assistance program.

SEC. 233. OIL AND GAS TECHNOLOGY TRANSFER CENTERS.

    (a) In General.--The Secretary of the Interior may establish and 
operate in accordance with this section regional centers administered 
by the United States Geological Survey. Each such center shall be known 
as an United States Geological Survey Oil and Gas Technology Transfer 
Center.
    (b) Partnership.--Each Center shall be established and operated 
under a partnership with the government of the State in which the 
Center is located, through the agency of the State that is responsible 
for geological survey activities.
    (c) Functions.--The Secretary, through each such Center, shall--
            (1) conduct oil and natural gas exploration and production 
        research in the region in which the Center is located; and
            (2) archive and provide public access to data regarding oil 
        and natural gas reserves and production in the region, 
        including information developed through research under 
        paragraph (1).
    (d) Research.--
            (1) Cost sharing.--The Federal share of the cost of 
        research conducted under this section may not exceed 50 
        percent.
            (2) Private contributions.--The Secretary--
                    (A) may accept private contributions of property 
                and services for research conducted under this section; 
                and
                    (B) shall apply the value of such contributions to 
                the non-Federal share of the costs of such research.

SEC. 234. MARGINAL WELL PRODUCTION INCENTIVES.

    To enhance the economics of marginal oil and gas production by 
increasing the ultimate recovery from marginal wells when the cash 
price of West Texas Intermediate crude oil, as posted on the Dow Jones 
Commodities Index chart, is less than $15 per barrel for 180 
consecutive pricing days or when the price of natural gas delivered at 
Henry Hub, Louisiana, is less than $2.00 per million British thermal 
units for 180 consecutive days, the Secretary shall reduce the royalty 
rate as production declines for--
            (1) onshore oil wells producing less than 30 barrels per 
        day;
            (2) onshore gas wells producing less than 120 million 
        British thermal units per day;
            (3) offshore oil wells producing less than 300 barrels of 
        oil per day; and
            (4) offshore gas wells producing less than 1,200 million 
        British thermal units per day.

SEC. 235. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, DOCUMENTATION, AND 
              STUDIES.

    The Mineral Leasing Act (30 U.S.C. 181 et seq.) is amended by 
inserting after section 37 the following:

   ``reimbursement for costs of certain analyses, documentation, and 
                                studies

    ``Sec. 38. (a) In General.--The Secretary of the Interior shall 
reimburse a person who is a lessee, operator, operating rights owner, 
or applicant for an oil or gas lease under this Act for costs incurred 
by the person in preparing any project-level analysis, documentation, 
or related study required under the National Environmental Policy Act 
of 1969 (42 U.S.C. 4321 et seq.) with respect to the lease, through 
royalty credits attributable to the lease, unit agreement, or project 
area for which the analysis, documentation, or related study is 
prepared.
    ``(b) Conditions.--The Secretary shall provide reimbursement under 
subsection (b) only if--
            ``(1) adequate funding to enable the Secretary to timely 
        prepare the analysis, documentation, or related study is not 
        appropriated;
            ``(2) the person paid the costs voluntarily; and
            ``(3) the person maintains records of its costs in 
        accordance with regulations prescribed by the Secretary.''.
    (c) Application.--The amendments made by this section shall apply 
with respect to any lease entered into before, on, or after the date of 
the enactment of this Act.
    (d) Deadline for Regulations.--The Secretary shall issue 
regulations implementing the amendments made by this section by not 
later than 90 days after the date of the enactment of this Act.

                TITLE III--GEOTHERMAL ENERGY DEVELOPMENT

SEC. 301. ROYALTY REDUCTION AND RELIEF.

    (a) Royalty Reduction.--Section 5(a) of the Geothermal Steam Act of 
1970 (30 U.S.C. 1004(a)) is amended by striking ``not less than 10 per 
centum or more than 15 per centum'' and inserting ``not more than 8 per 
centum''.
    (b) Royalty Relief.--
            (1) In general.--Notwithstanding section 5 of the 
        Geothermal Steam Act of 1970 (30 U.S.C. 1004(a)) and any 
        provision of any lease under that Act, no royalty is required 
        to be paid under any qualified geothermal energy lease with 
        respect to commercial production of heat or energy from a 
        facility that begins such production in the 5-year period 
        beginning on the date of the enactment of this Act.
            (2) 3-year application.--Paragraph (2) applies only to 
        commercial production of heat or energy from a facility in the 
        first 3 years of such production.
            (3) Qualified geothermal energy lease defined.--The term 
        ``qualified geothermal energy'' means a lease under the 
        Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.)--
                    (A) that was executed before the end of the 5-year 
                period beginning on the date of the enactment of this 
                Act; and
                    (B) under which no commercial production of any 
                form of heat or energy occurred before the date of the 
                enactment of this Act.

SEC. 302. EXEMPTION FROM ROYALTIES FOR DIRECT USE OF LOW TEMPERATURE 
              GEOTHERMAL ENERGY RESOURCES.

    Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004) is 
amended--
            (1) in paragraph (c) by redesignating subparagraphs (1) and 
        (2) as subparagraphs (A) and (B);
            (2) by redesignating paragraphs (a) through (d) in order as 
        paragraphs (1) through (4);
            (3) by moving paragraphs (1) through (4), as so 
        redesignated (including subparagraphs (A) through (B) of 
        paragraph (3)), 2 ems to the right;
            (4) by inserting ``(a) In General.--'' after ``Sec. 5.''; 
        and
            (5) by adding at the end the following new subsection:
    ``(b) Exemption for Use of Low Temperature Resources.--
            ``(1) In general.--In lieu of any royalty or rental under 
        subsection (a), a lease for qualified development and direct 
        utilization of low temperature geothermal resources shall 
        provide for payment by the lessee of an annual fee of not less 
        than $100, and not more than $1,000, in accordance with the 
        schedule issued under paragraph (2).
            ``(2) Schedule.--The Secretary shall issue a schedule of 
        fees under this section under which a fee is based on the scale 
        of development and utilization to which the fee applies.
            ``(3) Definitions.--In this subsection:
                    ``(A) Low temperature geothermal resources.--The 
                term `low temperature geothermal resources' means 
                geothermal steam and associated geothermal resources 
                having a temperature of less than 195 degrees 
                Fahrenheit.
                    ``(B) Qualified development and direct 
                utilization.--The term `qualified development and 
                direct utilization' means development and utilization 
                in which all products of geothermal resources, other 
                than any heat utilized, are returned to the geothermal 
                formation from which they are produced.''.

SEC. 303. AMENDMENTS RELATING TO LEASING ON FOREST SERVICE LANDS.

    The Geothermal Steam Act of 1970 is amended--
            (1) in section 15(b) (30 U.S.C. 1014(b)) is amended by 
        striking ``with the consent of, and''; and
            (2) section 28(e) (30 U.S.C. 1026(e)) is amended by 
        striking ``in determining whether to consent to leasing under 
        this Act'' and inserting ``in prescribing terms and conditions 
        under section 15(b) for leases''.

SEC. 304. DEADLINE FOR DETERMINATION ON PENDING NONCOMPETITIVE LEASE 
              APPLICATIONS.

    Not later than 90 days after the date of the enactment of this Act, 
the Secretary of the Interior shall, with respect to each application 
pending on the date of the enactment of this Act for a lease under the 
Geothermal  Steam Act of 1970 (30 U.S.C. 1001 et seq.), issue a final 
determination of--
            (1) whether or not to conduct a lease sale by competitive 
        bidding; and
            (2) whether or not to award a lease without competitive 
        bidding.

SEC. 305. OPENING OF PUBLIC LANDS UNDER MILITARY JURISDICTION.

    (a) In General.--Except as otherwise provided in the Geothermal 
Steam Act of 1970 (30 U.S.C. 1001 et seq.) and other provisions of 
Federal law applicable to development of geothermal energy resources 
within public lands, all public lands under the jurisdiction of a 
Secretary of a military department shall be open to the operation of 
such laws and development and utilization of geothermal steam and 
associated geothermal resources, as that term is defined in section 2 
of the Geothermal Steam Act of 1970 (30 U.S.C. 1001)), without the 
necessity for further action by the Secretary or the Congress.
    (b) Conforming Amendment.--Section 2689 of title 10, United States 
Code, is amended by striking ``including public lands,'' and inserting 
``, other than public lands,''.
    (c) Treatment of Existing Leases.--Upon the expiration of any lease 
in effect on the date of the enactment of this Act of public lands 
under the jurisdiction of a military department for the development of 
any geothermal resource, such lease may, at the option of the lessee--
            (1) be treated as a lease under the Geothermal Steam Act of 
        1970 (30 U.S.C. 1001 et seq.), and be renewed in accordance 
        with such Act; or
            (2) be renewed in accordance with the terms of the lease, 
        if such renewal is authorized by such terms.
    (d) Regulations.--The Secretary of the Interior, with the advice 
and concurrence of the Secretary of the military department concerned, 
shall prescribe such regulations to carry out this section as may be 
necessary. Such regulations shall contain guidelines to assist in 
determining how much, if any, of the surface of any lands opened 
pursuant to this section may be used for purposes incident to 
geothermal energy resources development and utilization.
    (e) Closure for Purposes of National Defense or Security.--In the 
event of a national emergency or for purposes of national defense or 
security, the Secretary of the Interior, at the request of the 
Secretary of the military department concerned, shall close any lands 
that have been opened to geothermal energy resources leasing pursuant 
to this section.

SEC. 306. APPLICATION OF AMENDMENTS.

    The amendments made by this title apply with respect to any lease 
executed before, on, or after the date of the enactment of this Act.

SEC. 307. REVIEW AND REPORT TO CONGRESS.

    The Secretary of the Interior shall promptly review and report to 
the Congress regarding the status of all moratoria on and withdrawals 
from leasing under the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et 
seq.) of known geothermal resources areas (as that term is defined in 
section 2 of that Act (30 U.S.C. 1001), specifying for each such area 
whether the basis for such moratoria or withdrawal still applies.

SEC. 308. REIMBURSEMENT FOR COSTS OF NEPA ANALYSES, DOCUMENTATION, AND 
              STUDIES.

    (a) In General.--The Geothermal Steam Act of 1970 (30 U.S.C. 1001 
et seq.) is amended by adding at the end the following:

   ``reimbursement for costs of certain analyses, documentation, and 
                                studies

    ``Sec. 30. (a) In General.--The Secretary of the Interior shall 
reimburse a person who is a lessee, operator, operating rights owner, 
or applicant for a lease under this Act for costs incurred by the 
person in preparing any project-level analysis, documentation, or 
related study required under the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.) with respect to the lease, through 
royalty credits attributable to the lease, unit agreement, or project 
area for which the analysis, documentation, or related study is 
prepared.
    ``(b) Conditions.--The Secretary shall provide reimbursement under 
subsection (b) only if--
            ``(1) adequate funding to enable the Secretary to timely 
        prepare the analysis, documentation, or related study is not 
        appropriated;
            ``(2) the person paid the costs voluntarily; and
            ``(3) the person maintains records of its costs in 
        accordance with regulations prescribed by the Secretary.''.
    (b) Application.--The amendments made by this section shall apply 
with respect to any lease entered into before, on, or after the date of 
the enactment of this Act.
    (c) Deadline for Regulations.--The Secretary shall issue 
regulations implementing the amendments made by this section by not 
later than 90 days after the date of the enactment of this Act.

                          TITLE IV--HYDROPOWER

SEC. 401. STUDY AND REPORT ON INCREASING ELECTRIC POWER PRODUCTION 
              CAPABILITY OF EXISTING FACILITIES.

    (a) In General.--The Secretary of the Interior shall conduct a 
study of the potential for increasing electric power production 
capability at existing facilities under the administrative jurisdiction 
of the Secretary.
    (b) Content.--The study under this section shall include 
identification and description in detail of each facility that is 
capable, with or without modification, of producing additional 
hydroelectric power, including estimation of the existing potential for 
the facility to generate hydroelectric power.
    (c) Report.--The Secretary shall submit to the Congress a report on 
the findings, conclusions, and recommendations of the study under this 
section by not later than 12 months after the date of enactment of this 
Act. The Secretary shall include in the report the following:
            (1) The identifications, descriptions, and estimations 
        referred to in subsection (b).
            (2) A description of activities the Secretary is currently 
        conducting or considering, or that could be considered, to 
        produce additional hydroelectric power from each identified 
        facility.
            (3) A summary of action that has already been taken by the 
        Secretary to produce additional hydroelectric power from each 
        identified facility.
            (4) The costs to install, upgrade, or modify equipment or 
        take other actions to produce additional hydroelectric power 
        from each identified facility.
            (5) The benefits that would be achieved by such 
        installation, upgrade, modification, or other action, including 
        quantified estimates of any additional energy or capacity from 
        each facility identified under subsection (b).
            (6) A description of actions that are planned, underway, or 
        might reasonably be considered to increase hydroelectric power 
        production by replacing turbine runners.
            (7) A description of actions that are planned, underway, or 
        might reasonably be considered to increase hydroelectric power 
        production by performing generator uprates and rewinds.
            (8) Any additional recommendations the Secretary considers 
        advisable to increase hydroelectric power production from, and 
        reduce costs and improve efficiency at, facilities under the 
        jurisdiction of the Secretary.

SEC. 402. INSTALLATION OF POWERFORMER AT FOLSOM POWER PLANT, 
              CALIFORNIA.

    (a) In General.--The Secretary of the Interior may install a 
powerformer at the Bureau of Reclamation Folsom power plant in Folsom, 
California, to replace a generator and transformer that are due for 
replacement due to age.
    (b) Reimbursable Costs.--Costs incurred by the United States for 
installation of a powerformer under this section shall be treated as 
reimbursable costs and shall bear interest at current long-term 
borrowing rates of the United States Treasury at the time of 
acquisition.
    (c) Local Cost Sharing.--In addition to reimbursable costs under 
subsection (b), the Secretary shall seek contributions from power users 
toward the costs of the powerformer and its installation.

SEC. 403. CONSERVATION THROUGH PUMP MODERNIZATION.

    (a) Pump Replacement Program.--The Secretary of the Interior 
shall--
            (1) conduct a study to determine what pumps associated with 
        water delivery projects should be replaced, based on a cost-
        benefit analysis of modernizing pumping installations, 
        including determination and consideration of the savings in 
        energy costs that would result from such replacement; and
            (2) based on the findings of the study, replace each pump 
        for which the benefits of such replacement (including such 
        energy costs savings) is greater than the cost of the pump 
        replacement.
    (b) Costs.--
            (1) Reimbursable costs.--The costs incurred by the United 
        States for replacement of any pump under this section shall be 
        treated as reimbursable costs and shall bear interest at 
        current long-term borrowing rates of the United States Treasury 
        at the time of acquisition.
            (2) Local cost sharing.--In addition to reimbursable costs 
        under paragraph (1), the Secretary shall secure customer 
        funding of the costs of pump replacements under this section.
    (c) Authorization of Appropriations.--For replacement of pumps 
under this section there is authorized to be appropriated to the 
Secretary $20,000,000.

SEC. 404. STUDY AND IMPLEMENTATION OF INCREASED OPERATIONAL 
              EFFICIENCIES IN HYDROELECTRIC POWER PROJECTS.

    (a) In General.--The Secretary of Interior shall conduct a study of 
operational methods and water scheduling techniques at all 
hydroelectric power plants under the administrative jurisdiction of the 
Secretary that have an electric power production capacity greater than 
50 megawatts, to--
            (1) determine whether such power plants and associated 
        river systems are operated so as to maximize energy and 
        capacity capabilities; and
            (2) identify measures that can be taken to improve 
        operational flexibility at such plants to achieve such 
        maximization.
    (b) Report.--The Secretary shall submit a report on the findings, 
conclusions, and recommendations of the study under this section by not 
later than 18 months after the date of the enactment of this Act, 
including a summary of the determinations and identifications under 
paragraphs (1) and (2) of subsection (a).
    (c) Cooperation by Federal Power Marketing Administrations.--The 
Secretary shall coordinate with the Administrator of each Federal power 
marketing administration in--
            (1) determining how the value of electric power produced by 
        each hydroelectric power facility that produces power marketed 
        by the administration can be maximized; and
            (2) implementing measures identified under subsection 
        (a)(2).
    (d) Limitation on Implementation of Measures.--Implementation under 
subsections (a)(2) and (b)(2) shall be limited to those measures that 
can be implemented within the constraints imposed on Department of the 
Interior facilities by other uses required by law.

SEC. 405. SHIFT OF PROJECT LOADS TO OFF-PEAK PERIODS.

    (a) In General.--The Secretary of the Interior shall--
            (1) review electric power consumption by Bureau of 
        Reclamation facilities for water pumping purposes; and
            (2) make such adjustments in such pumping as possible to 
        minimize the amount of electric power consumed for such pumping 
        during periods of peak electric power consumption, including by 
        performing as much of such pumping as possible during off-peak 
        hours at night.
    (b) Consent of Affected Irrigation Customers Required.--The 
Secretary may not under this section make any adjustment in pumping at 
a facility without the consent of each person that has contracted with 
the United States for delivery of water from the facility for use for 
irrigation and that would be affected by such adjustment.
    (c) Existing Obligations Not Affected.--This section shall not be 
construed to affect any existing obligation of the Secretary to provide 
electric power, water, or other benefits from Bureau of Reclamation 
facilities.

             TITLE V--ARCTIC COASTAL PLAIN DOMESTIC ENERGY

SEC. 501. SHORT TITLE.

    This title may be cited as the ``Arctic Coastal Plain Domestic 
Energy Security Act of 2001''.

SEC. 502. DEFINITIONS.

    In this title:
            (1) Coastal plain.--The term ``Coastal Plain'' means that 
        area identified as such in the map entitled ``Arctic National 
        Wildlife Refuge'', dated August 1980, as referenced in section 
        1002(b) of the Alaska National Interest Lands Conservation Act 
        of 1980 (16 U.S.C. 3142(b)(1)), comprising approximately 
        1,549,000 acres.
            (2) Secretary.--The term ``Secretary'', except as otherwise 
        provided, means the Secretary of the Interior or the 
        Secretary's designee.

SEC. 503. 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 
        title a competitive oil and gas leasing program under the 
        Mineral Leasing Act (30 U.S.C. 181 et seq.) 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 title 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, and 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 title in a manner that 
        ensures the receipt of fair market value by the public for the 
        mineral resources to be leased.
    (b) Repeal.--Section 1003 of the Alaska National Interest Lands 
Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
    (c) Compliance With Requirements Under Certain Other Laws.--
            (1) Compatibility.--For purposes of the National Wildlife 
        Refuge System Administration Act of 1966, 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 that 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 
        actions authorized to be taken by the Secretary to develop and 
        promulgate the regulations for the establishment of a leasing 
        program authorized by this title before the conduct of the 
        first lease sale.
            (3) Compliance with nepa for other actions.--Before 
        conducting the first lease sale under this title, the Secretary 
        shall prepare an environmental impact statement under the 
        National Environmental Policy Act of 1969 with respect to the 
        actions authorized by this title 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 
        title 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 title.
    (d) Relationship to State and Local Authority.--Nothing in this 
title shall be considered to expand or limit State and local regulatory 
authority.
    (e) Special Areas.--
            (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 
        as depicted on the map referred to in section 502(1).
            (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 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 
title.
    (g) Regulations.--
            (1) In general.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out this title, 
        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. 504. LEASE SALES.

    (a) In General.--Lands may be leased pursuant to this title 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 title shall be 
by sealed competitive cash bonus bids.
    (d) Acreage Minimum in First Sale.--In the first lease sale under 
this title, 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 title within 22 
        months after the date of enactment of this title; and
            (2) conduct additional sales so long as sufficient interest 
        in development exists to warrant, in the Secretary's judgment, 
        the conduct of such sales.

SEC. 505. 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 504 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 title 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. 506. LEASE TERMS AND CONDITIONS.

    (a) In General.--An oil or gas lease issued pursuant to this title 
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 title 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, and the environment as 
        required pursuant to section 503(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; and
            (8) contain such other provisions as the Secretary 
        determines necessary to ensure compliance with the provisions 
        of this title and the regulations issued under this title.
    (b) Project Labor Agreements.--The Secretary, as a term and 
condition of each lease under this title 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 title 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. 507. 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 503, administer the provisions of this title 
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; and
            (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.
    (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, 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 title, 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 title are conducted in a manner consistent with the purposes and 
environmental requirements of this title.
    (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 title 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 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--
                    (A) the Secretary determines, after affording an 
                opportunity for public comment and review, that special 
                circumstances exist necessitating that exploration 
                activities be conducted at other times of the year; and
                    (B) 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 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 title, 
        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 reduction 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.

SEC. 508. EXPEDITED JUDICIAL REVIEW.

    (a) Filing of Complaint.--
            (1) Deadline.--Subject to paragraph (2), any complaint 
        seeking judicial review of any provision of this title or any 
        action of the Secretary under this title shall be filed in any 
        appropriate district court of the United States--
                    (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 an 
        action of the Secretary under this title 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 
        title, 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. 509. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

    (a) Exemption.--Title XI of the Alaska National Interest Lands 
Conservation Act of 1980 (16 U.S.C. 3161 et seq.) shall not apply to 
the issuance by the Secretary under section 28 of the Mineral Leasing 
Act (30 U.S.C. 185) of rights-of-way and easements across the Coastal 
Plain for the transportation of oil and gas.
    (b) Terms and Conditions.--The Secretary shall include in any 
right-of-way or easement referred to in 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 503(g) provisions granting rights-of-way and easements 
described in subsection (a) of this section.

SEC. 510. 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 2 of Public Land Order 
        6959, to the extent necessary  to fulfill the Corporation's 
entitlement under section 12 of the Alaska Native Claims Settlement Act 
(43 U.S.C. 1611); and
            (2) to the Arctic Slope Regional Corporation the subsurface 
        estate beneath such surface estate pursuant to the August 9, 
        1983, agreement between the Arctic Slope Regional Corporation 
        and the United States of America.

SEC. 511. 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 
        title.
            (2) Eligible entities.--The North Slope Borough, Kaktovik, 
        and other boroughs, municipal subdivisions, villages, and any 
        other community organized under Alaska State law 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; and
            (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 firefighting, police, water, waste 
        treatment, medivac, and medical services.
    (c) Application.--
            (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 under on 
        leases and lease sales authorized under this title.
            (4) Limitation on deposits.--The total amount in the fund 
        may not exceed $10,000,000.
            (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.
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