[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3435 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3435

To improve energy security of the United States through a reduction in 
the oil intensity of the economy of the United States and expansion of 
 secure oil supplies, to be achieved by increasing the availability of 
  alternative fuel sources, fostering responsible oil exploration and 
  production, and improving international arrangements to secure the 
               global oil supply, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 3, 2007

Mr. Pickering introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committees on 
   Ways and Means, Science and Technology, Natural Resources, Armed 
Services, Foreign Affairs, and Select Intelligence (Permanent Select), 
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 improve energy security of the United States through a reduction in 
the oil intensity of the economy of the United States and expansion of 
 secure oil supplies, to be achieved by increasing the availability of 
  alternative fuel sources, fostering responsible oil exploration and 
  production, and improving international arrangements to secure the 
               global oil supply, 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 ``Security and Fuel 
Efficiency Energy Act of 2007'' or the ``SAFE Energy Act of 2007''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
     TITLE I--INCREASED USE OF ALTERNATIVE FUELS AND INFRASTRUCTURE

Sec. 101. Renewable fuel standard.
Sec. 102. Ethanol-blend fuel infrastructure.
Sec. 103. Emerging biofuels.
Sec. 104. Biodiesel.
Sec. 105. Unconventional fossil fuels.
Sec. 106. Phaseout of alternative fuels credits.
Sec. 107. Advanced biomass fuels production tax credit.
Sec. 108. Study of incentives for renewable fuels.
TITLE II--DEVELOPMENT AND INVENTORY OF CERTAIN OUTER CONTINENTAL SHELF 
                               RESOURCES

Sec. 201. Authorization of activities and exports involving hydrocarbon 
                            resources by United States persons.
Sec. 202. Travel in connection with authorized hydrocarbon exploration 
                            and extraction activities.
Sec. 203. Moratorium of oil and gas leasing in certain areas of the 
                            Gulf of Mexico.
Sec. 204. Inventory and leasing of outer Continental Shelf oil and 
                            natural gas resources.
Sec. 205. Conforming amendments to moratoria on use of appropriations.
Sec. 206. Enhanced oil recovery.
Sec. 207. Treatment of revenues under oil and gas leases for other 
                            areas.
                 TITLE III--MANAGEMENT OF ENERGY RISKS

Sec. 301. Bureau of International Energy Policy.
Sec. 302. Strategic energy infrastructure equipment reserve.
Sec. 303. Increase in capacity.

     TITLE I--INCREASED USE OF ALTERNATIVE FUELS AND INFRASTRUCTURE

SEC. 101. RENEWABLE FUEL STANDARD.

    Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is amended 
as follows:
            (1) In paragraph (2)(B) as follows:
                    (A) By striking clause (i) and inserting the 
                following:
                            ``(i) Calendar years 2006 through 2020.--
                                    ``(I) Renewable fuel.--For the 
                                purpose of subparagraph (A), subject to 
                                subclause (II), the applicable total 
                                volume for any of calendar years 2006 
                                through 2020 shall be determined in 
                                accordance with the following table:

                                            Applicable total volume of 
                                                         renewable fuel
``Calendar year:                              (in billions of gallons):
        2006...................................................     4.0
        2007...................................................     4.7
        2008...................................................     7.1
        2009...................................................     9.5
        2010...................................................    12.0
        2011...................................................    12.6
        2012...................................................    13.2
        2013...................................................    13.8
        2014...................................................    14.4
        2015...................................................    15.0
        2016...................................................    18.0
        2017...................................................    21.0
        2018...................................................    24.0
        2019...................................................    27.0
        2020...................................................    30.0
                                    ``(II) Cellulosic biomass 
                                ethanol.--For the purpose of paragraph 
                                (1), of the total volume of renewable 
                                fuel required under subclause (I), the 
                                applicable volume for any of calendar 
                                years 2012 through 2020 for cellulosic 
                                biomass ethanol shall be determined in 
                                accordance with the following table:

                                       Applicable volume of cellulosic 
                                                        biomass ethanol
``Calendar year:                              (in billions of gallons):
        2012...................................................   0.25 
        2013...................................................    1.0 
        2014...................................................    3.0 
        2015...................................................    5.0 
        2016...................................................    7.0 
        2017...................................................    9.0 
        2018...................................................   11.0 
        2019...................................................   13.0 
        2020................................................... 15.0''.
                    (B) In clause (ii)--
                            (i) in the clause heading, by striking 
                        ``2013'' and inserting ``2021'';
                            (ii) by striking ``2013'' and inserting 
                        ``2021''; and
                            (iii) by striking ``2012'' and inserting 
                        ``2020''.
                    (C) In clause (iii), by striking ``thereafter--'' 
                and all that follows through ``(II) the'' and inserting 
                ``thereafter, the''.
                    (D) In clause (iv)--
                            (i) by striking ``2013'' and inserting 
                        ``2021''; and
                            (ii) in subclause (II)(bb), by striking 
                        ``2012'' and inserting ``2020''.
            (2) In paragraph (3)--
                    (A) in subparagraph (A), by striking ``2011'' and 
                inserting ``2019''; and
                    (B) in subparagraph (B)(i), by striking ``2012'' 
                and inserting ``2020.''
            (3) In paragraph (6)(A), by striking ``2012'' and inserting 
        ``2020''.
            (4) By amending paragraph (7) to read as follows:
            ``(7) Waivers.--
                    ``(A) In general.--The Administrator, in 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy, may waive the requirements of 
                paragraph (2) in whole or in part on petition by one or 
                more States by reducing the national quantity of 
                renewable fuel required under paragraph (2)--
                            ``(i) based on a determination by the 
                        Administrator, after public notice and 
                        opportunity for comment, that implementation of 
                        the requirement would severely harm the economy 
                        or environment of a State, a region, or the 
                        United States; or
                            ``(ii) based on a determination by the 
                        Administrator, after public notice and 
                        opportunity for comment, that there is an 
                        inadequate domestic supply.
                    ``(B) Petitions for waivers.--The Administrator, in 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy, shall approve or disapprove a 
                State petition for a waiver of the requirements of 
                paragraph (2) within 90 days after the date on which 
                the petition is received by the Administrator.
                    ``(C) Termination of waivers.--A waiver granted 
                under subparagraph (A) shall terminate after 1 year, 
                but may be renewed by the Administrator after 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy.''.

SEC. 102. ETHANOL-BLEND FUEL INFRASTRUCTURE.

    Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is amended 
by adding at the end the following:
            ``(11) Installation of ethanol-blend fuel pumps by covered 
        owners at stations.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Covered owner.--The term `covered 
                        owner' means any person that, individually or 
                        together with any other person with respect to 
                        which the person has an affiliate relationship 
                        or significant ownership interest, owns 10 or 
                        more retail station outlets, as determined by 
                        the Secretary.
                            ``(ii) Ethanol-blend fuel.--The term 
                        `ethanol-blend fuel' means a blend of gasoline 
                        not more than 85 percent, nor less than 80 
                        percent, of the content of which is derived 
                        from ethanol produced in the United States, as 
                        defined by the Secretary in a manner consistent 
                        with applicable standards of the American 
                        Society for Testing and Materials.
                            ``(iii) Secretary.--The term `Secretary' 
                        means the Secretary of Energy, acting in 
                        consultation with the Administrator and the 
                        Secretary of Agriculture.
                    ``(B) Assessment.--Not later than 5 years after the 
                date of enactment of this paragraph, the Secretary 
                shall make an assessment of the progress made toward 
                the creation of adequate infrastructure for the 
                production and distribution of ethanol-blend fuel 
                (including the creation of adequate qualified 
                alternative fuel vehicle refueling property that is a 
                blender pump).
                    ``(C) Regulations.--If the Secretary determines (in 
                the assessment made under subparagraph (B)) that 
                adequate progress has not been made toward the creation 
                of adequate infrastructure for the production and 
                distribution of ethanol-blend fuel, the Secretary shall 
                promulgate regulations to ensure, to the maximum extent 
                practicable, that each covered owner installs or 
                otherwise makes available 1 or more pumps that dispense 
                ethanol-blend fuel (including any other equipment 
                necessary, such as tanks, to ensure that the pumps 
                function properly) at not less than the applicable 
                percentage of the retail station outlets of the covered 
                owner specified in subparagraph (D).
                    ``(D) Applicable percentages.--For the purpose of 
                subparagraph (C), the applicable percentage of the 
                retail station outlets shall be--
                            ``(i) during the 10-year period beginning 
                        on the date of any determination made under 
                        subparagraph (C), 10 percent; and
                            ``(ii) after the 10-year period described 
                        in clause (i), 20 percent.
                    ``(E) Financial responsibility.--In promulgating 
                regulations under subparagraph (C), the Secretary shall 
                ensure that each covered owner described in that 
                subparagraph assumes full financial responsibility for 
                the costs of installing or otherwise making available 
                the pumps described in that subparagraph and any other 
                equipment necessary (including tanks) to ensure that 
                the pumps function properly.
                    ``(F) Production credits for exceeding ethanol-
                blend fuel pumps installation requirement.--
                            ``(i) Earning and period for applying 
                        credits.--If the percentage of the retail 
                        station outlets of a covered owner at which the 
                        covered owner installs ethanol-blend fuel pumps 
                        in a particular calendar year exceeds the 
                        percentage required under subparagraph (D), the 
                        covered owner shall earn credits under this 
                        paragraph, which may be applied to any of the 3 
                        consecutive calendar years immediately after 
                        the calendar year for which the credits are 
                        earned.
                            ``(ii) Trading credits.--A covered owner 
                        that has earned credits under clause (i) may 
                        sell credits to another covered owner to enable 
                        the purchaser to meet the requirement under 
                        subparagraph (D).''.

SEC. 103. EMERGING BIOFUELS.

    (a) Establishment of Incentive Program.--The Secretary of Energy 
(referred to in this section as the ``Secretary'') shall establish a 
program under which the Secretary shall provide to eligible entities 
such incentives (including grants, loans, and loan guarantees) as the 
Secretary determines to be appropriate for the production of cellulosic 
ethanol and other emerging biofuels derived from renewable sources 
(including municipal solid waste).
    (b) Application.--To be eligible to receive an incentive under this 
section, an eligible entity shall submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary may require, including--
            (1) a description of the project for which the incentive 
        will be used;
            (2) a description of the use by the eligible entity of the 
        incentive; and
            (3) an estimate of the annual production using the 
        incentive by the eligible entity of cellulosic ethanol or 
        another biofuel, expressed on a per-gallon basis.
    (c) Selection Requirements.--
            (1) Minimum number of incentives.--The Secretary shall 
        provide incentives under this section to not less than 6 
        biorefineries located in different regions of the United 
        States.
            (2) Least-cost incentives.--The Secretary shall provide 
        incentives under this section only to eligible entities the 
        applications of which reflect the least-cost use of the 
        incentives, on a per-gallon basis, with respect to similar 
        projects.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $500,000,000.

SEC. 104. BIODIESEL.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Energy shall submit to Congress 
a report on any research and development challenges inherent in 
increasing to 5 percent the proportion of diesel fuel sold in the 
United States that is biodiesel, as defined in section 757 of the 
Energy Policy Act of 2005 (42 U.S.C. 16105).
    (b) Regulations.--The Administrator of the Environmental Protection 
Agency shall promulgate regulations providing for the uniform labeling 
of biodiesel blends that are certified to meet applicable standards 
published by the American Society for Testing and Materials.

SEC. 105. UNCONVENTIONAL FOSSIL FUELS.

    (a) In General.--The Secretary of Energy shall carry out a 10-year 
carbon capture research and development program to develop carbon 
dioxide capture technologies that can be used in the recovery of liquid 
fuels from oil shale and the production of liquid fuels in coal 
utilization facilities to minimize the emissions of carbon dioxide from 
those processes.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $50,000,000 for the period of fiscal years 2008 through 
        2012; and
            (2) $100,000,000 for the period of fiscal years 2013 
        through 2017.

SEC. 106. PHASEOUT OF ALTERNATIVE FUELS CREDITS.

    (a) Alcohol Fuels Credit.--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) Phaseout of Credit.--
            ``(1) In general.--The amount of the credit allowable under 
        subsection (a) shall be reduced by an amount which bears the 
        same ratio to the amount of the credit (determined without 
        regard to this paragraph) as--
                    ``(A) the amount by which the reference price for 
                the calendar year preceding the calendar year in which 
                the taxable year begins exceeds $45, bears to
                    ``(B) $20.
            ``(2) Reference price.--For purposes of paragraph (1), the 
        term `reference price' means, with respect to any calendar 
        year, the reference price determined for such calendar year 
        under section 45K(d)(2)(C).''.
    (b) Biodiesel Fuels Credit.--Section 40A of such Code (relating to 
biodiesel and renewable diesel used as fuel) is amended by 
redesignating subsection (g) as subsection (h) and by inserting after 
subsection (f) the following new subsection:
    ``(g) Phaseout of Credit.--
            ``(1) In general.--The amount of the credit allowable under 
        subsection (a) shall be reduced by an amount which bears the 
        same ratio to the amount of the credit (determined without 
        regard to this paragraph) as--
                    ``(A) the amount by which the reference price for 
                the calendar year preceding the calendar year in which 
                the taxable year begins exceeds $45, bears to
                    ``(B) $20.
            ``(2) Reference price.--For purposes of paragraph (1), the 
        term `reference price' means, with respect to any calendar 
        year, the reference price determined for such calendar year 
        under section 45K(d)(2)(C).''.
    (c) Credit Against Excise Tax on Alcohol Fuel, Biodiesel, and 
Alternative Fuel Mixtures.--Section 6426 of such Code (relating to 
credit for alcohol fuel, biodiesel, and alternative fuel mixtures) is 
amended by adding at the end the following:
    ``(h) Phaseout of Credit.--
            ``(1) In general.--The amount of the credit allowable under 
        subsection (a) shall be reduced by an amount which bears the 
        same ratio to the amount of the credit (determined without 
        regard to this paragraph) as--
                    ``(A) the amount by which the reference price for 
                the calendar year preceding the calendar year in which 
                the taxable year begins exceeds $45, bears to
                    ``(B) $20.
            ``(2) Reference price.--For purposes of paragraph (1), the 
        term `reference price' means, with respect to any calendar 
        year, the reference price determined for such calendar year 
        under section 45K(d)(2)(C).''.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to taxable years 
        beginning after the date of the enactment of this Act.
            (2) Credit against excise tax.--The amendment made by 
        subsection (c) shall apply to fuel sold, used, or removed after 
        December 31, 2007.

SEC. 107. ADVANCED BIOMASS FUELS PRODUCTION TAX CREDIT.

    (a) In General.--Subchapter B of chapter 65 of the Internal Revenue 
Code of 1986 (relating to rules for special application) is amended by 
adding at the end the following:

``SEC. 6426A. CREDIT FOR PRODUCING ADVANCED BIOMASS FUEL.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by section 4041 and against the tax imposed by 
section 4081 an amount equal to the credit described in subsection (b). 
No credit shall be allowed in the case of the credits described in 
subsections (b) and (c) unless the taxpayer is registered under section 
4101.
    ``(b) Advanced Biomass Fuel Credit.--
            ``(1) In general.--For purposes of this section, the 
        advanced biomass fuel credit is the product of 50 cents and the 
        number of gallons of an advanced biomass fuel produced by the 
        taxpayer and which during the taxable year--
                    ``(A) is sold by such taxpayer to another person--
                            ``(i) for use by such other person in the 
                        production of a qualified mixture in such other 
                        person's trade or business (other than casual 
                        off-farm production),
                            ``(ii) for use by such other person as a 
                        fuel in a trade or business, or
                            ``(iii) who sells such advanced biomass 
                        fuel at retail to another person and places 
                        such fuel in the fuel tank of such other 
                        person, or
                    ``(B) is used or sold by such taxpayer for any 
                purpose described in clause (i).
            ``(2) Advanced biomass fuel.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `advanced biomass fuel' 
                means fuel derived from any lignocellulosic or 
                hemicellulosic matter that is available on a renewable 
                or recurring basis, including--
                            ``(i) dedicated energy crops and trees,
                            ``(ii) wood and wood residues,
                            ``(iii) plants,
                            ``(iv) grasses,
                            ``(v) agricultural residues,
                            ``(vi) fibers,
                            ``(vii) animal wastes and other waste 
                        materials, and
                            ``(viii) municipal solid waste.
                    ``(B) Fuel produced in facilities where certain 
                waste materials displace fossil fuels used in 
                production.--Such term also includes any fuel derived 
                from biomass and produced in facilities where animal 
                wastes or other waste materials are digested or 
                otherwise used to displace 90 percent or more of the 
                fossil fuel normally used to produce a quantity of 
                ethanol with the same energy content.
                    ``(C) Exceptions.--Such term does not include 
                ethanol, methanol, or biodiesel.
            ``(3) Certification of advanced biomass fuel.--No credit 
        shall be allowed under this subsection unless the taxpayer 
        obtains a certification (in such form and manner as prescribed 
        by the Secretary) from the producer or importer of a biofuel or 
        biofuels-blend that identifies the product produced and the 
        percentage of advanced biomass fuel in the product.
    ``(c) Mixture Not Used as a Fuel, etc.--
            ``(1) Imposition of tax.--If--
                    ``(A) any credit was determined under this section 
                with respect to advanced biomass fuel used in the 
                production of any advanced biomass fuel mixture, and
                    ``(B) any person--
                            ``(i) separates the advanced biomass from 
                        the mixture, or
                            ``(ii) without separation, uses the mixture 
                        other than as a fuel,
                then there is hereby imposed on such person a tax equal 
                to the product of the applicable amount and the number 
                of gallons of such advanced biomass fuel.
            ``(2) Applicable laws.--All provisions of law, including 
        penalties, shall, insofar as applicable and not inconsistent 
        with this section, apply in respect of any tax imposed under 
        paragraph (1) as if such tax were imposed by section 4081 and 
        not by this section.
    ``(d) Coordination With Exemption From Excise Tax.--Rules similar 
to the rules under section 40(c) shall apply for purposes of this 
section.''.
    (b) Conforming Amendments.--
            (1) Section 6427(e) of such Code is amended--
                    (A) in paragraph (1) by inserting ``or 6427A'' 
                after ``6427'',
                    (B) by redesignating paragraphs (3) through (5) as 
                paragraphs (4) through (6), respectively, and by 
                inserting after paragraph (2) the following new 
                paragraph:
            ``(3) Advanced biomass fuel.--If any person sells or uses 
        an advanced biomass fuel (as defined in section 6426A) for a 
        purpose described in section 6426A(c)(1) in such person's trade 
        or business, the Secretary shall pay (without interest) to such 
        person an amount equal to the advanced biomass fuel credit with 
        respect to such fuel.'',
                    (C) in paragraph (4), as so redesignated, by 
                striking ``paragraph (1) or (2)'' and 
                inserting``paragraphs (1), (2), or (3)'', and
                    (D) in paragraph (5), as so redesignated, by 
                striking `` or alternative fuel mixture credit'' and 
                inserting ``, alternative fuel mixture credit, advanced 
                biomass fuel credit, or advanced biomass fuel mixture 
                credit''.
            (2) Section 6427(i)(3) of such Code is amended--
                    (A) by inserting ``or 6426A'' after ``6426'' in 
                subparagraph (A), and
                    (B) in the section heading by striking ``and 
                biodiesel mixture credit'' and inserting ``biodiesel 
                mixture credit, and advanced biomass fuel mixture 
                credit''.
            (3) Section 40(c) of such Code is amended by inserting 
        ``section 6426A,'' after ``6426,''.
            (4) Section 40A(c) of such Code is amended by inserting 
        ``section 6426A,'' after ``6426,''.
            (5) Section 4101(a)(1) of such Code is amended--
                    (A) by striking ``or alcohol'' and inserting ``, 
                alcohol'', and
                    (B) by inserting ``or advanced biomass fuel (as 
                defined in section 6426A)'' before ``shall register''.
            (6) Section 4104(a)(2) of such Code is amended by inserting 
        ``section 6426A,'' after ``6426,''.
            (7) Section 9503(b)(1) of such Code is amended by inserting 
        ``or 6426A'' after ``6426''.
    (c) Clerical Amendment.--The table of sections for subchapter B of 
chapter 65 of such Code is amended by inserting after the item relating 
to section 6426 the following new item:

``Sec. 6426A. Credit for producing advanced biomass fuel.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to fuel sold, used, or removed after December 31, 2007.

SEC. 108. STUDY OF INCENTIVES FOR RENEWABLE FUELS.

    (a) Study.--The Director of the National Science Foundation (in 
consultation with the Secretary of Energy, the Secretary of the 
Treasury, Secretary of Agriculture, the Administrator of the 
Environmental Protection Agency, representatives of the biofuels 
industry, the oil industry, and other interested parties) shall conduct 
a study of the renewable fuels industry and markets in the United 
States, including--
            (1) the costs to produce corn-based and cellulosic-based 
        ethanol and biobutanol, biodiesel, and other emerging biofuels;
            (2) the factors affecting the future market prices for 
        those biofuels, including world oil prices; and
            (3) the level of tax incentives necessary, to the maximum 
        extent practicable, to grow the biofuels industry of the United 
        States to reduce the dependence of the United States on foreign 
        oil during calendar years 2011 through 2030.
    (b) Goals.--The study shall include an analysis of the types and 
advantages and disadvantages of tax incentive options to, to the 
maximum extent practicable--
            (1) limit the overall cost of the tax incentives to the 
        Federal Government;
            (2) encourage expansion of the biofuels industry by 
        ensuring that new plants and recently-built plants can fully 
        amortize the investments in the plants;
            (3) reward energy-efficient and low carbon-emitting 
        technologies;
            (4) ensure that pioneering processes (such as those that 
        convert cellulosic feedstocks like corn stover and switch grass 
        to ethanol) are economically competitive with fossil fuels;
            (5) encourage agricultural producer equity participation in 
        ethanol plants; and
            (6) encourage the development of higher blend markets, such 
        as E-20, E30, and E-85.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Director shall submit a report that describes the results 
of the study to--
            (1) the Committee on Agriculture, Nutrition, and Forestry 
        of the Senate;
            (2) the Committee on Energy and Natural Resources of the 
        Senate;
            (3) the Committee on Environment and Public Works of the 
        Senate;
            (4) the Committee on Finance of the Senate;
            (5) the Committee on Agriculture of the House of 
        Representatives;
            (6) the Committee on Energy and Commerce of the House of 
        Representatives; and
            (7) the Committee on Ways and Means of the House of 
        Representatives.

TITLE II--DEVELOPMENT AND INVENTORY OF CERTAIN OUTER CONTINENTAL SHELF 
                               RESOURCES

SEC. 201. AUTHORIZATION OF ACTIVITIES AND EXPORTS INVOLVING HYDROCARBON 
              RESOURCES BY UNITED STATES PERSONS.

    (a) Authorization.--Notwithstanding any other provision of law 
(including a regulation), United States persons (including agents and 
affiliates of those United States persons) may--
            (1) engage in any transaction necessary for the exploration 
        for and extraction of hydrocarbon resources from any portion of 
        any foreign exclusive economic zone that is contiguous to the 
        exclusive economic zone of the United States; and
            (2) export without license authority all equipment 
        necessary for the exploration for or extraction of hydrocarbon 
        resources described in paragraph (1).
    (b) Definition.--In this section, the term ``United States person'' 
means--
            (1) any United States citizen or alien lawfully admitted 
        for permanent residence in the United States; and
            (2) any person other than an individual, if 1 or more 
        individuals described in paragraph (1) own or control at least 
        51 percent of the securities or other equity interest in the 
        person.

SEC. 202. TRAVEL IN CONNECTION WITH AUTHORIZED HYDROCARBON EXPLORATION 
              AND EXTRACTION ACTIVITIES.

    Section 910 of the Trade Sanctions Reform and Export Enhancement 
Act of 2000 (22 U.S.C. 7209) is amended by inserting after subsection 
(b) the following:
    ``(c) General License Authority for Travel-Related Expenditures by 
Persons Engaging in Hydrocarbon Exploration and Extraction 
Activities.--
            ``(1) In general.--The Secretary of the Treasury shall, 
        authorize under a general license the travel-related 
        transactions listed in section 515.560(c) of title 31, Code of 
        Federal Regulations, for travel to, from, or within Cuba in 
        connection with exploration for and the extraction of 
        hydrocarbon resources in any part of a foreign maritime 
        exclusive economic zone that is contiguous to the exclusive 
        economic zone of the United States.
            ``(2) Persons authorized.--Persons authorized to travel to 
        Cuba under this section include full-time employees, 
        executives, agents, and consultants of oil and gas producers, 
        distributors, and shippers.
            ``(3) Definition.--In this section, the term `exclusive 
        economic zone of the United States' has the meaning given the 
        term `Exclusive Economic Zone' in section 2101(10a) of title 
        46, United States Code.''.

SEC. 203. MORATORIUM OF OIL AND GAS LEASING IN CERTAIN AREAS OF THE 
              GULF OF MEXICO.

    (a) In General.--Section 104(a) of the Gulf of Mexico Energy 
Security Act of 2006 (43 U.S.C. 1331 note; title I of division C of 
Public Law 109-432) is amended--
            (1) in paragraph (2), by striking ``125 miles'' and 
        inserting ``45 miles''; and
            (2) in paragraph (3), by striking ``100 miles'' each place 
        it appears and inserting ``45 miles''.
    (b) Regulations.--
            (1) In general.--The Secretary of the Interior shall 
        promulgate regulations that establish appropriate environmental 
        safeguards for the exploration and production of oil and 
        natural gas on the outer Continental Shelf.
            (2) Minimum requirements.--At a minimum, the regulations 
        shall include--
                    (A) provisions requiring surety bonds of sufficient 
                value to ensure the mitigation of any foreseeable 
                incident;
                    (B) provisions assigning liability to the 
                leaseholder in the event of an incident causing damage 
                or loss, regardless of the negligence of the 
                leaseholder or lack of negligence;
                    (C) provisions no less stringent than those 
                contained in the Spill Prevention, Control, and 
                Countermeasure regulations promulgated under the Oil 
                Pollution Act of 1990 (33 U.S.C. 2701 et seq.);
                    (D) provisions ensuring that--
                            (i) no facility for the exploration or 
                        production of resources is visible to the 
                        unassisted eye from any shore of any coastal 
                        State; and
                            (ii) the impact of offshore production 
                        facilities on coastal vistas is otherwise 
                        mitigated;
                    (E) provisions to ensure, to the maximum extent 
                practicable, that exploration and production activities 
                will result in no significant adverse effect on fish or 
                wildlife (including habitat), subsistence resources, or 
                the environment; and
                    (F) provisions that will impose seasonal 
                limitations on activity to protect breeding, spawning, 
                and wildlife migration patterns.

SEC. 204. INVENTORY AND LEASING OF OUTER CONTINENTAL SHELF OIL AND 
              NATURAL GAS RESOURCES.

    (a) Inventory.--
            (1) In general.--Except as otherwise provided in subsection 
        (c), the Secretary of the Interior (in this section referred to 
        as the ``Secretary'') may conduct an inventory in accordance 
        with this subsection of oil and natural gas resources beneath 
        the waters of the outer Continental Shelf (as defined in 
        section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1331)), other than beneath such waters located in the Gulf of 
        Mexico or off the coast of Florida.
            (2) Best available technology.--In conducting the 
        inventory, the Secretary shall use the best technology 
        available to obtain accurate resource estimates.
            (3) Reports.--The Secretary shall submit to Congress and 
        the requesting Governor a report on any inventory conducted 
        under this section.
    (b) Leasing.--Except as otherwise provided in subsection (c), the 
Secretary shall offer for oil and natural gas leasing pursuant to the 
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) by as soon 
as practicable after the date of enactment of this Act all areas for 
which an inventory has been conducted under subsection (a).
    (c) Limitations.--The Secretary may not under this section--
            (1) conduct an inventory under this subsection for any area 
        of the outer Continental Shelf located within 50 miles of the 
        State, if the Governor of the State notifies the Secretary that 
        the State objects to conduct of the inventory in that area;
            (2) conduct any offshore oil and natural gas preleasing, 
        leasing, or related activities for any area of the outer 
        Continental Shelf located within 50 miles of a State, before--
                    (A) the Secretary submits to Congress the report 
                under subsection (a)(3) for that area; and
                    (B) the Governor of the State requests the 
                Secretary to make such area available for such leasing; 
                or
            (3) conduct any offshore oil and natural gas preleasing, 
        leasing, or related activities for any area of the outer 
        Continental Shelf located more than 50 miles and less than 100 
        miles from the State, if the Governor of the State notifies the 
        Secretary that the State objects to conduct of the inventory in 
        that area.

SEC. 205. CONFORMING AMENDMENTS TO MORATORIA ON USE OF APPROPRIATIONS.

    The Department of the Interior, Environment, and Related Agencies 
Appropriations Act, 2006 (Public Law 109-54) is amended--
            (1) in section 104 (119 Stat. 521) by striking ``the areas 
        of northern, central, and southern California; the North 
        Atlantic; Washington and Oregon; and'';
            (2) in section 105 (119 Stat. 521) by inserting ``and any 
        other area that the Secretary of the Interior may offer for 
        leasing, preleasing, or any related activity under section 104 
        of that Act'' after ``2006)''; and
            (3) in section 106 (119 Stat. 522) by striking ``the Mid-
        Atlantic and South Atlantic planning areas'' and inserting 
        ``the portion of the South Atlantic planning area located off 
        the coast of Florida''.

SEC. 206. ENHANCED OIL RECOVERY.

    Section 354(c)(4)(B) of the Energy Policy Act of 2005 (42 U.S.C. 
15910(c)(4)(B)) is amended--
            (1) in clause (iii), by striking ``and'' at the end;
            (2) in clause (iv), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                            ``(v) are carried out in geologically 
                        challenging fields.''.

SEC. 207. TREATMENT OF REVENUES UNDER OIL AND GAS LEASES FOR OTHER 
              AREAS.

    Section 105 of the Gulf of Mexico Energy Security Act (Public Law 
109-432; 43 U.S.C. 1331 note) is amended by adding at the end the 
following:
    ``(g) Treatment of Revenues Under Oil and Gas Leases for Other 
Areas.--Amounts received by the United States as rentals, royalties, 
bonus bids, and other sums due and payable under Federal oil and gas 
leases for outer Continental Shelf planning areas that are opened for 
such leases after the date of the enactment of this subsection shall be 
deposited and paid to States adjoining such areas in substantially the 
same manner in which qualified outer Continental Shelf revenues are 
deposited and paid under this section.''.

                 TITLE III--MANAGEMENT OF ENERGY RISKS

SEC. 301. BUREAU OF INTERNATIONAL ENERGY POLICY.

    Section 101 of the National Security Act of 1947 (50 U.S.C. 402) is 
amended--
            (1) by redesignating subsection (i) (as added by section 
        301 of Public Law 105-292 (112 Stat. 2800)) as subsection (k); 
        and
            (2) by adding at the end the following:
    ``(l) Bureau of International Energy Policy.--
            ``(1) Establishment.--The President shall establish within 
        the National Security Council a Bureau of International Energy.
            ``(2) Duties.--The Bureau shall, in conjunction with the 
        Secretary of Defense, the Secretary of State, and the Secretary 
        of Energy, prepare and submit to Congress an annual energy 
        security report.''.

SEC. 302. STRATEGIC ENERGY INFRASTRUCTURE EQUIPMENT RESERVE.

    (a) Establishment.--The Secretary of Energy may establish and 
operate a strategic energy infrastructure equipment reserve.
    (b) Use.--The reserve shall be used and operated for--
            (1) the protection, conservation, maintenance, and testing 
        of strategic energy infrastructure equipment; and
            (2) the provision of strategic energy infrastructure 
        equipment whenever and to the extent that--
                    (A) the Secretary, with the approval of the 
                President, finds that the equipment is needed for 
                energy security purposes; and
                    (B) the provision of the equipment is authorized by 
                a joint resolution of Congress.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 303. INCREASE IN CAPACITY.

    (a) The Energy Policy and Conservation Act is amended--
            (1) in section 151(b) (42 U.S.C. 6231(b)) by striking ``1'' 
        and inserting ``1.5''; and
            (2) in section 154(a) (42 U.S.C. 6234(a)) by striking ``1'' 
        and inserting ``1.5''.
    (b) Section 301(e) of the Energy Policy Act of 2005 (42 U.S.C. 6240 
note) is amended by striking ``1,000,000,000'' and inserting 
``1,500,000,000''.
                                 <all>