[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3917 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 3917

 To establish the American-Made Energy Trust Fund, to increase the tax 
 credits for cellulosic biomass ethanol, to extend tax incentives for 
     solar and fuel cell property, to promote coal-to-liquid fuel 
 activities, to direct the Secretary of the Interior to establish and 
  implement a competitive oil and gas leasing program for the Coastal 
                Plain of Alaska, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 21, 2006

   Mr. Burr introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To establish the American-Made Energy Trust Fund, to increase the tax 
 credits for cellulosic biomass ethanol, to extend tax incentives for 
     solar and fuel cell property, to promote coal-to-liquid fuel 
 activities, to direct the Secretary of the Interior to establish and 
  implement a competitive oil and gas leasing program for the Coastal 
                Plain of Alaska, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``American-Made 
Energy Freedom Act of 2006''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
TITLE I--TAX INCENTIVES FOR CELLULOSIC BIOMASS ETHANOL, SOLAR AND FUEL 
        CELL PROPERTY, AND CERTAIN LIQUID FUEL DERIVED FROM COAL

Sec. 101. Increased tax credits for cellulosic biomass ethanol.
Sec. 102. Extension of energy credit for solar and fuel cell property.
Sec. 103. Extension and modification of credit for residential energy 
                            efficient property.
Sec. 104. Extension and modification of excise tax credits for certain 
                            liquid fuel derived from coal.
               TITLE II--AMERICAN-MADE ENERGY TRUST FUND

Sec. 201. Establishment of American-Made Energy Trust Fund.
TITLE III--DEVELOPMENT OF OIL AND GAS RESOURCES OF THE COASTAL PLAIN OF 
                                 ALASKA

Sec. 301. Definitions.
Sec. 302. Leasing program for lands within the Coastal Plain.
Sec. 303. Lease sales.
Sec. 304. Grant of leases by the Secretary.
Sec. 305. Lease terms and conditions.
Sec. 306. Coastal plain environmental protection.
Sec. 307. Expedited judicial review.
Sec. 308. Federal and State distribution of revenues.
Sec. 309. Rights-of-way across the Coastal Plain.
Sec. 310. Conveyance.
Sec. 311. Local government impact aid and community service assistance.

TITLE I--TAX INCENTIVES FOR CELLULOSIC BIOMASS ETHANOL, SOLAR AND FUEL 
        CELL PROPERTY, AND CERTAIN LIQUID FUEL DERIVED FROM COAL

SEC. 101. INCREASED TAX CREDITS FOR CELLULOSIC BIOMASS ETHANOL.

    (a) Income Tax Credit.--
            (1) In general.--Section 40 of the Internal Revenue Code of 
        1986 (relating to alcohol used as fuel) is amended by adding at 
        the end the following new subsection:
    ``(i) Increased Credit for Cellulosic Biomass Ethanol.--
            ``(1) In general.--In the case of cellulosic biomass 
        ethanol--
                    ``(A) subsection (h) shall not apply,
                    ``(B) if such ethanol has a proof of at least 150 
                but less than 190--
                            ``(i) subsection (b)(3) shall not apply, 
                        and
                            ``(ii) subsections (b)(1)(A), (b)(2)(A), 
                        (d)(3)(A), and (d)(3)(B) shall each be applied 
                        by substituting `the low-proof cellulosic 
                        ethanol amount' for `60 cents', and
                    ``(C) if such alcohol has a proof of at least 190, 
                subsections (b)(1)(A), (b)(2)(A), (d)(3)(A), and 
                (d)(3)(B) shall each be applied by substituting `the 
                cellulosic ethanol amount' for `60 cents'.
            ``(2) Limitations.--
                    ``(A) Overall dollar limitation.--Paragraph (1) 
                shall not apply to any cellulosic biomass ethanol which 
                is sold or used after the date on which the Secretary 
                certifies that, in the estimation of the Secretary, 
                more than $1,250,000,000 has been allowed, in the 
                aggregate, as a credit under this section with respect 
                to cellulosic biomass ethanol taken into account under 
                this subsection and subsection (c).
                    ``(B) Per taxpayer maximum.--
                            ``(i) In general.--With respect to any 
                        taxpayer, paragraph (1) shall only apply to the 
                        first 25,000,000 gallons of cellulosic biomass 
                        ethanol sold or used by the taxpayer during any 
                        calendar year.
                            ``(ii) Termination of taxpayer maximum.--
                        Clause (i) shall not apply with respect to any 
                        calendar year after the first calendar year 
                        with respect to which the Secretary certifies 
                        that, in the estimation of the Secretary, at 
                        least 10 taxpayers sell or use cellulosic 
                        biomass ethanol to which paragraph (1) applies.
                    ``(C) Per taxpayer minimum.--With respect to any 
                taxpayer, paragraph (1) shall not apply to any 
                cellulosic biomass ethanol sold or used by the taxpayer 
                during any calendar year unless the aggregate amount of 
                cellulosic biomass ethanol sold or used by such 
                taxpayer during such calendar year exceeds 5,000,000 
                gallons.
            ``(3) Cellulosic ethanol amount; low-proof cellulosic 
        ethanol amount.--
                    ``(A) In general.--The terms `cellulosic ethanol 
                amount' and `low-proof cellulosic ethanol amount' mean 
                $1.25 and $1.10, respectively.
                    ``(B) Phase-out based on price of oil.--
                            ``(i) In general.--The $1.25 and $1.10 
                        amounts contained in subparagraph (A) shall 
                        each be reduced (but not below $0.51 and 
                        $0.3778, respectively) by an amount which bears 
                        the same ratio to the amount so contained in 
                        subparagraph (A) (as so increased) as--
                                    ``(I) the amount (if any) by which 
                                the price of a barrel of crude oil 
                                exceeds $40, bears to
                                    ``(II) $71.
                            ``(ii) Determination by secretary.--The 
                        price of a barrel of crude oil shall be 
                        determined periodically by the Secretary under 
                        such methodology as the Secretary determines 
                        appropriate. The price determined under this 
                        clause and the reduction required by clause (i) 
                        shall apply with respect to cellulosic biomass 
                        ethanol sold or used during the period with 
                        respect to which such determination relates.
                    ``(C) Inflation adjustment of phase-out based on 
                price of oil.--In the case of any period beginning in a 
                calendar year after 2007, the dollar amounts contained 
                in subclauses (I) and (II) of subparagraph (B)(i) shall 
                be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2006' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                Any increase determined under the preceding sentence 
                shall be rounded to the nearest multiple of $1.
            ``(4) Cellulosic biomass ethanol.--The term `cellulosic 
        biomass ethanol' means ethanol produced by enzymatic hydrolysis 
        of any lignocellulosic or hemicellulosic feedstock that is 
        available on a renewable or recurring basis, including 
        agricultural residues, agricultural fibers, dedicated energy 
        crops, grasses, plants, and wood and wood residues.
            ``(5) Application of aggregation, etc., rules.--Rules 
        similar to the rules of paragraphs (2), (3), and (4) of 
        subsection (g) shall apply for purposes of the limitations 
        under subparagraphs (B) and (C) of paragraph (2).''.
            (2) Termination.--Subsection (e) of section 40 of such Code 
        (relating to termination) is amended--
                    (A) by redesignating paragraph (2) as paragraph 
                (3),
                    (B) by inserting after paragraph (1) the following 
                new paragraph:
            ``(2) Cellulosic biomass ethanol.--In the case of 
        cellulosic biomass ethanol with respect to which subsection 
        (i)(1) applies--
                    ``(A) paragraph (1) shall not apply, and
                    ``(B) this section shall not apply to any sale or 
                use of such ethanol for any period after the earlier of 
                the date on which the Secretary makes the certification 
                described in subsection (i)(2)(A) or December 31, 
                2023.'', and
                    (C) by inserting ``or (2)'' after ``paragraph (1)'' 
                in paragraph (3) (as redesignated by this paragraph).
    (b) Excise Tax Credit.--
            (1) In general.--Paragraph (2) of section 6426(b) of the 
        Internal Revenue Code of 1986 (relating to applicable amount) 
        is amended--
                    (A) by adding at the end the following new 
                subparagraph:
                    ``(C) Cellulosic biomass ethanol.--In the case of 
                cellulosic biomass ethanol to which section 40(i)(1) 
                applies or to which such section would apply but for 
                subsections (c) and (e) of section 40, the applicable 
                amount is the cellulosic ethanol amount (as defined in 
                section 40(i)(3)).'', and
                    (B) by striking ``subparagraph (B)'' in 
                subparagraph (A) and inserting ``subparagraphs (B) or 
                (C)''.
            (2) Termination.--Paragraph (5) of section 6426(b) of such 
        Code (relating to termination) is amended to read as follows:
            ``(5) Termination.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), this subsection shall not apply to 
                any sale, use, or removal for any period after December 
                31, 2010.
                    ``(B) Cellulosic biomass ethanol.--In the case of 
                any cellulosic biomass ethanol with respect to which 
                paragraph (2)(C) applies--
                            ``(i) subparagraph (A) shall not apply, and
                            ``(ii) this subsection shall not apply to 
                        any sale or use of such ethanol for any period 
                        after the earlier of the date on which the 
                        Secretary makes the certification described in 
                        section 40(i)(2)(A) or December 31, 2023.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to fuel sold or used after the date of the enactment of this Act.

SEC. 102. EXTENSION OF ENERGY CREDIT FOR SOLAR AND FUEL CELL PROPERTY.

    (a) 30 Percent Credit for Solar.--Subclause (II) of section 
48(a)(2)(A)(i) of the Internal Revenue Code of 1986 is amended by 
striking ``2008'' and inserting ``2013''.
    (b) Qualified Fuel Cell Property.--
            (1) In general.--Subparagraph (E) of section 48(c)(1) of 
        such Code is amended by striking ``2007'' and inserting 
        ``2012''.
            (2) Termination of special rule.--Subparagraph (D) of 
        section 48(c)(1) of such Code is amended by inserting ``placed 
        in service before January 1, 2008, and'' after ``qualified fuel 
        cell property which is''.
    (c) Fiber-Optic Distributed Sunlight.--Clause (ii) of section 
48(a)(3)(A) of such Code is amended by striking ``2008'' and inserting 
``2013''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 103. EXTENSION AND MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY 
              EFFICIENT PROPERTY.

    (a) In General.--Subsection (g) of section 25D of the Internal 
Revenue Code of 1986 is amended by striking ``2007'' and inserting 
``2012''.
    (b) Modification of Maximum Credit for Qualified Solar Electricity 
Property.--Subparagraph (A) of section 25D(b)(1) of such Code is 
amended to read as follows:
                    ``(A) $2,000 with respect to each half kilowatt of 
                capacity of property for which qualified solar 
                electricity property expenditures are made,''.
    (c) Conforming Amendments.--
            (1) Paragraph (1) of section 25D(a) of such Code is amended 
        by striking ``photovoltaic'' and inserting ``solar 
        electricity''.
            (2) Paragraph (2) of section 25D(d) of such Code is amended 
        in the text and in the heading by striking ``photovoltaic'' and 
        inserting ``solar electricity''.
            (3) Paragraph (4)(A)(i) of section 25D(e) of such Code is 
        amended by striking ``photovoltaic'' and inserting ``solar 
        electricity''.
    (d) Effective Dates.--
            (1) In general.--The amendment made by subsection (a) shall 
        take effect on the date of the enactment of this Act.
            (2) Increase in credit for solar electricity property.--The 
        amendments made by subsections (b) and (c) shall apply to 
        taxable years beginning after December 31, 2005.
            (3) Hold harmless transition rule.--In the case of any 
        taxable year beginning after December 31, 2005, and before the 
        date of the enactment of this Act, the taxpayer may elect (at 
        such time and in such form and manner as the Secretary of the 
        Treasury may determine) to apply the limitation under section 
        25D(b)(1)(A) of the Internal Revenue Code of 1986 which was in 
        effect immediately before the date of the enactment of this Act 
        for purposes of determining the credit under section 25D of 
        such Code for such taxable year in lieu of such limitation as 
        otherwise in effect for such year.

SEC. 104. EXTENSION AND MODIFICATION OF EXCISE TAX CREDITS FOR CERTAIN 
              LIQUID FUEL DERIVED FROM COAL.

    (a) Modification of Excise Tax Credits.--Section 6426 of the 
Internal Revenue Code of 1986 is amended by redesignating subsection 
(g) as subsection (h) and by inserting after subsection (f) the 
following new subsection:
    ``(g) Special Rules for Liquid Fuel Derived From Coal.--
            ``(1) Limitations.--
                    ``(A) Overall dollar limitation.--No liquid coal 
                fuel shall be taken into account in determining the 
                alternative fuel credit under subsection (d) or the 
                alternative fuel mixture credit under subsection (e) if 
                such fuel is sold or used after the date on which the 
                Secretary certifies that, in the estimation of the 
                Secretary, more than $1,500,000,000 has been allowed, 
                in the aggregate, as a credit under this section with 
                respect to liquid coal fuel taken into account under 
                subsections (d) and (e).
                    ``(B) Per taxpayer maximum.--
                            ``(i) In general.--With respect to any 
                        taxpayer, only the first 150,000,000 gallons of 
                        liquid coal fuel which is sold or used by the 
                        taxpayer during any calendar year may be taken 
                        into account under subsection (d) or (e).
                            ``(ii) Termination of taxpayer maximum.--
                        Clause (i) shall not apply with respect to any 
                        calendar year after the first calendar year 
                        with respect to which the Secretary certifies 
                        that, in the estimation of the Secretary, at 
                        least 5 taxpayers sell or use liquid coal fuel 
                        which is taken into account under subsection 
                        (d) or (e).
                    ``(C) Per taxpayer minimum.--With respect to any 
                taxpayer, liquid coal fuel sold or used by the taxpayer 
                during any calendar year shall not be taken into 
                account in determining the alternative fuel credit 
                under subsection (d) or the alternative fuel mixture 
                credit under subsection (e) unless the aggregate amount 
                of liquid coal fuel sold or used by such taxpayer 
                during such calendar year exceeds 15,000,000 gallons.
            ``(2) Adjustment of credit amount.--Solely for purposes of 
        determining that portion of the alternative fuel credit under 
        subsection (d) and the alternative fuel mixture credit under 
        subsection (e) which is allowed with respect to liquid coal 
        fuel--
                    ``(A) Phase-out based on price of oil.--
                            ``(i) In general.--The 50 cent amounts 
                        contained in subsections (d)(1) and (e)(1) 
                        shall each be reduced (but not below zero) by 
                        an amount which bears the same ratio to the 
                        amount so contained in subsection (d)(1) or 
                        (e)(1) (as so increased) as--
                                    ``(I) the amount (if any) by which 
                                the price of a barrel of crude oil 
                                exceeds $45, bears to
                                    ``(II) $70.
                            ``(ii) Determination by secretary.--The 
                        price of a barrel of crude oil shall be 
                        determined periodically by the Secretary under 
                        such methodology as the Secretary determines 
                        appropriate. The price determined under this 
                        clause and the reduction required by clause (i) 
                        shall apply with respect to liquid coal fuel 
                        sold or used during the period to which such 
                        determination relates.
                    ``(B) Inflation adjustment of phase-out based on 
                price of oil.--In the case of any period beginning in a 
                calendar year after 2007, the dollar amounts contained 
                in subclauses (I) and (II) of subparagraph (A)(i) shall 
                be increased by an amount equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2006' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                Any increase determined under the preceding sentence 
                shall be rounded to the nearest multiple of $1.
            ``(3) Liquid coal fuel.--For purposes of this section and 
        section 6427, the term `liquid coal fuel' means liquid fuel 
        derived from coal which is described in subsection (d)(2)(E).
            ``(4) Application of aggregation, etc., rules.--Rules 
        similar to the rules of paragraphs (2), (3), and (4) of section 
        40(g) shall apply for purposes of the limitations under 
        paragraph (2).
            ``(5) Credit may be transferred.--Nothing in any law or 
        rule of law shall be construed to limit the transferability of 
        the alternative fuel credit under subsection (e) or the 
        alternative fuel mixture credit under subsection (e) if--
                    ``(A) liquid coal fuel is taken into account in 
                determining such credit, and
                    ``(B) such fuel or an alternative fuel mixture 
                produced with such coal is purchased from the 
                transferor of such credit by the transferee of such 
                credit.''.
    (b) Extension of Credit.--
            (1) Alternative fuel credit.--Paragraph (4) of section 
        6426(d) of such Code (relating to termination) is amended by 
        inserting ``(the earlier of December 31, 2023, or the date of 
        the certification under subsection (g)(1)(A), in the case of 
        any sale or use involving liquid coal fuel)'' before the period 
        at the end.
            (2) Alternative fuel mixture credit.--Paragraph (3) of 
        section 6426(e) of such Code (relating to termination) is 
        amended by inserting ``(the earlier of December 31, 2023, or 
        the date of the certification under subsection (g)(1)(A), in 
        the case of any sale or use involving liquid coal fuel)'' 
        before the period at the end.
            (3) Refundability of credit.--Paragraph (5) of section 
        6427(e) of such Code (relating to termination) is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (C), by striking the period at the end of subparagraph 
                (D) and inserting ``, and'', and by adding at the end 
                the following new subparagraph:
                    ``(E) any alternative fuel or alternative fuel 
                mixture (as so defined) involving liquid coal fuel sold 
                or used after the earlier of December 31, 2023, or the 
                date of the certification under section 
                6426(g)(1)(A).'', and
                    (B) by inserting ``or (E)'' after ``subparagraph 
                (D)'' in subparagraph (C).
    (c) Effective Date.--The amendments made by this section shall 
apply to any sale or use for any period after September 30, 2006.

               TITLE II--AMERICAN-MADE ENERGY TRUST FUND

SEC. 201. ESTABLISHMENT OF AMERICAN-MADE ENERGY 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-MADE 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-Made Energy Trust Fund', consisting of such amounts as may be 
appropriated or credited to the American-Made Energy Trust Fund as 
provided in this section or section 9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the American-Made Energy Trust Fund amounts required to be transferred 
under section 308(a)(2) of the American-Made Energy Freedom Act of 
2006.
    ``(c) Expenditures From American-Made Energy Trust Fund.--
            ``(1) In general.--As provided by appropriation Acts, 
        amounts in the American-Made Energy Trust Fund shall be 
        available--
                    ``(A) for transfer to the general fund of the 
                Treasury to offset any reduction in revenue to the 
                United States that the Secretary estimates results from 
                the amendments made by title I of the American-Made 
                Energy Freedom Act of 2006, and
                    ``(B) to carry out sections 210, 932, 1510, 1511, 
                1512, 1514, and title XVII of the Energy Policy Act of 
                2005.
            ``(2) Limitation on availability to carry out the energy 
        policy act of 2005.--
                    ``(A) In general.--Notwithstanding paragraph (1), 
                amounts in the American-Made Energy Trust Fund shall be 
                available to carry out the provisions referred to in 
                paragraph (1)(B) 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-Made Energy Trust Fund) of the 
                amounts necessary to make all future transfers 
                described in subparagraph (A) of paragraph (1).
                    ``(B) Apportionment of excess amount.--
                Notwithstanding paragraph (1), the excess amount 
                certified by the Secretary under subparagraph (A) shall 
                be apportioned to the provisions referred to in 
                paragraph (1)(B) in accordance with the following 
                table:

``To carry out the following           The following percentage of the 
        provision of the Energy                 excess amount shall be 
        Policy Act of 2005:                                 available: 
        Section 210........................................ 15 percent 
        Section 932........................................  5 percent 
        Section 1510.......................................  2 percent 
        Section 1511....................................... 24 percent 
        Section 1512....................................... 24 percent 
        Section 1514....................................... 10 percent 
        Title XVII......................................... 20 percent.
                    ``(C) Maximum dollar limitation.--Notwithstanding 
                paragraph (1), the maximum aggregate amount which may 
                be paid from the American-Made Energy Trust Fund to 
                carry out the provisions referred to in paragraph 
                (1)(B) shall not exceed $3,000,000,000.
                    ``(D) Report to congress.--Any certification made 
                under subparagraph (A) 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-Made Energy Trust Fund.''.
    (c) Effective Date.--The amendments made by this section shall 
apply after the date of the enactment of this Act.

TITLE III--DEVELOPMENT OF OIL AND GAS RESOURCES OF THE COASTAL PLAIN OF 
                                 ALASKA

SEC. 301. DEFINITIONS.

    In this title:
            (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. 302. 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 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 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, 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.--
            (1) Repeal.--Section 1003 of the Alaska National Interest 
        Lands Conservation Act of 1980 (16 23U.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 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 title. 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.
            (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 
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 title.
            (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. 303. 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 the 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. 304. 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 303 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. 305. 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, subsistence resources, and 
        the environment as required pursuant to section 302(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 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. 306. 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 302, 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;
            (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 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, 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 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 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. 307. 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--
                    (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 title or any 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 title 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 title 
        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. 308. 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 title--
            (1) 50 percent shall be paid to the State of Alaska;
            (2) except as provided in section 311(d), the balance shall 
        be transferred to the American-Made Energy Trust Fund.
    (b) Payments to Alaska.--Payments to the State of Alaska under this 
section shall be made semiannually.

SEC. 309. 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 302(g) provisions granting rights-of-way and easements 
described in subsection (a) of this section.

SEC. 310. 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. 311. 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, 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 title, 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.
    (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 from 
        Federal leases and lease sales authorized under this title.
            (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.
                                 <all>