[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6001 Introduced in House (IH)]
110th CONGRESS
2d Session
H. R. 6001
To rebalance the United States energy portfolio, to increase and
utilize the Nation's domestic energy resources and supply, to
strengthen energy security and independence, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 8, 2008
Mr. Buyer (for himself, Mr. Cole of Oklahoma, Mr. Graves, Mr.
Pickering, Mr. Hayes, Mr. Shimkus, Mr. Pence, Mr. Burton of Indiana,
Mr. Kline of Minnesota, Mrs. Blackburn, Mr. Wamp, Mr. Young of Alaska,
Mr. Hoekstra, Mr. Shuster, Mr. McHenry, Mr. Barrett of South Carolina,
Mr. Souder, and Mr. Shadegg) introduced the following bill; which was
referred to the Committee on Natural Resources, and in addition to the
Committees on Energy and Commerce, Ways and Means, Armed Services, and
Science and Technology, 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 rebalance the United States energy portfolio, to increase and
utilize the Nation's domestic energy resources and supply, to
strengthen energy security and independence, 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.
(a) Short Title.--This Act may be cited as the ``Main Street U.S.A.
Energy Security Act of 2008''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title.
TITLE I--INCREASE OUR ENERGY CAPACITY
Subtitle A--Refineries
Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. State assistance.
Sec. 104. Refinery process coordination and procedures.
Sec. 105. Designation of closed military bases.
Sec. 106. Savings clause.
Sec. 107. Refinery revitalization repeal.
Subtitle B--Oil and Gas Development on the Coastal Plain of Alaska
Sec. 121 Definitions.
Sec. 122. Leasing program for lands within the Coastal Plain.
Sec. 123. Lease sales.
Sec. 124. Grant of leases by the Secretary.
Sec. 125. Lease terms and conditions.
Sec. 126. Coastal plain environmental protection.
Sec. 127. Expedited judicial review.
Sec. 128. Federal and State distribution of revenues.
Sec. 129. Rights-of-way across the Coastal Plain.
Sec. 130. Conveyance.
Sec. 131. Local government impact aid and community service assistance.
Subtitle C--Opening of Outer Continental Shelf
Sec. 141. Short title.
Sec. 142. Policy.
Sec. 143. Definitions under the Outer Continental Shelf Lands Act.
Sec. 144. Determination of Adjacent Zones and planning areas.
Sec. 145. Administration of leasing.
Sec. 146. Grant of leases by Secretary.
Sec. 147. Disposition of receipts.
Sec. 148. Reservation of lands and rights.
Sec. 149. Outer Continental Shelf Leasing Program.
Sec. 150. Coordination with Adjacent States.
Sec. 151. Environmental studies.
Sec. 152. Federal Energy Natural Resources Enhancement Act of 2008.
Sec. 153. Termination of effect of laws prohibiting the spending of
appropriated funds for certain purposes.
Sec. 154. Outer Continental Shelf incompatible use.
Sec. 155. Repurchase of certain leases.
Sec. 156. Offsite environmental mitigation.
Sec. 157. Minerals Management Service.
Sec. 158. Authority to use decommissioned offshore oil and gas
platforms and other facilities for
artificial reef, scientific research, or
other uses.
Sec. 159. Repeal of requirement to conduct comprehensive inventory of
OCS oil and natural gas resources.
Sec. 160. Mining and petroleum schools.
Sec. 161. Onshore and offshore mineral lease fees.
Sec. 162. OCS regional headquarters.
Sec. 163. National Geo Fund Act of 2008.
Sec. 164. Leases for areas located within 100 miles of California or
Florida.
Sec. 165. Coastal impact assistance.
Sec. 166. Oil shale and tar sands amendments.
Sec. 167. Availability of OCS receipts to provide payments under Secure
Rural Schools and Community Self-
Determination Act of 2000.
Sec. 168. Sense of the Congress to buy and build American.
Subtitle D--Nuclear
Sec. 181. Incentives for innovative technologies.
Sec. 182. Authorization for Nuclear Power 2010 Program.
Sec. 183. Domestic manufacturing base for nuclear components and
equipment.
Sec. 184. Nuclear energy workforce.
Sec. 185. National Nuclear Energy Council.
Sec. 186. Nuclear waste management.
TITLE II--INCREASE OUR UTILIZATION EFFICIENCY
Subtitle A--Coal to Liquids
Sec. 201. Location of coal-to-liquid manufacturing facilities.
Sec. 202. Authorization to conduct research, development, testing, and
evaluation of assured domestic fuels.
Sec. 203. Coal-to-liquid long-term fuel procurement and Department of
Defense development.
Subtitle B--Energy Tax Provisions
Sec. 211. Short title; amendment of 1986 Code.
Part 1--Production Incentives
Sec. 221. Extension and modification of renewable energy credit.
Sec. 222. Production credit for electricity produced from marine
renewables.
Sec. 223. Extension of electricity production tax credit to electricity
produced from the production of substitute
natural gas from refined coal or petcoke.
Sec. 224. Extension and modification of energy credit.
Sec. 225. New clean renewable energy bonds.
Sec. 226. Extension and modification of special rule to implement FERC
and State electric restructuring policy.
Sec. 227. Extension and modification of credit for residential energy
efficient property.
Part 2--Transportation Conservation Incentives
subpart a--vehicles
Sec. 231. Credit for plug-in hybrid vehicles.
Sec. 232. Extension and modification of alternative fuel vehicle
refueling property credit.
Sec. 233. Modification of limitation on automobile depreciation.
subpart b--fuels
Sec. 241. Extension and modification of credits for biodiesel and
renewable diesel.
Sec. 242. Clarification that credits for fuel are designed to provide
an incentive for United States production.
Sec. 243. Credit for production of cellulosic alcohol.
Sec. 244. Extension for credit for alternative fuels and mixtures
derived from coal (including peat) through
the Fischer-Tropsch process.
Part 3--Other Conservation Provisions
Sec. 251. Qualified energy conservation bonds.
Sec. 252. Extension and modification of credit for nonbusiness energy
property.
Sec. 253. Extension of energy efficient commercial buildings deduction.
Sec. 254. Modifications of energy efficient appliance credit for
appliances produced after 2007.
Sec. 255. Five-year applicable recovery period for depreciation of
qualified energy management devices.
Sec. 256. Clarification of eligibility for certain fuels credits for
fuel with insufficient nexus to the United
States.
TITLE III--RESEARCH AND DEVELOPMENT
Sec. 301. Blended fuels.
Sec. 302. Cellulosic Ethanol.
TITLE I--INCREASE OUR ENERGY CAPACITY
Subtitle A--Refineries
SEC. 101. SHORT TITLE.
This subtitle may be cited as the ``Refinery Permit Process
Schedule Act''.
SEC. 102. DEFINITIONS.
For purposes of this subtitle--
(1) the term ``Administrator'' means the Administrator of
the Environmental Protection Agency;
(2) the term ``applicant'' means a person who is seeking a
Federal refinery authorization;
(3) the term ``biomass'' has the meaning given that term in
section 932(a)(1) of the Energy Policy Act of 2005;
(4) the term ``Federal refinery authorization''--
(A) means any authorization required under Federal
law, whether administered by a Federal or State
administrative agency or official, with respect to
siting, construction, expansion, or operation of a
refinery; and
(B) includes any permits, licenses, special use
authorizations, certifications, opinions, or other
approvals required under Federal law with respect to
siting, construction, expansion, or operation of a
refinery;
(5) the term ``refinery'' means--
(A) a facility designed and operated to receive,
load, unload, store, transport, process, and refine
crude oil by any chemical or physical process,
including distillation, fluid catalytic cracking,
hydrocracking, coking, alkylation, etherification,
polymerization, catalytic reforming, isomerization,
hydrotreating, blending, and any combination thereof,
in order to produce gasoline or distillate;
(B) a facility designed and operated to receive,
load, unload, store, transport, process, and refine
coal by any chemical or physical process, including
liquefaction, in order to produce gasoline or diesel as
its primary output; or
(C) a facility designed and operated to receive,
load, unload, store, transport, process (including
biochemical, photochemical, and biotechnology
processes), and refine biomass in order to produce
biofuel; and
(6) the term ``State'' means a State, the District of
Columbia, the Commonwealth of Puerto Rico, and any other
territory or possession of the United States.
SEC. 103. STATE ASSISTANCE.
(a) State Assistance.--At the request of a governor of a State, the
Administrator is authorized to provide financial assistance to that
State to facilitate the hiring of additional personnel to assist the
State with expertise in fields relevant to consideration of Federal
refinery authorizations.
(b) Other Assistance.--At the request of a governor of a State, a
Federal agency responsible for a Federal refinery authorization shall
provide technical, legal, or other nonfinancial assistance to that
State to facilitate its consideration of Federal refinery
authorizations.
SEC. 104. REFINERY PROCESS COORDINATION AND PROCEDURES.
(a) Appointment of Federal Coordinator.--
(1) In general.--The President shall appoint a Federal
coordinator to perform the responsibilities assigned to the
Federal coordinator under this subtitle.
(2) Other agencies.--Each Federal and State agency or
official required to provide a Federal refinery authorization
shall cooperate with the Federal coordinator.
(b) Federal Refinery Authorizations.--
(1) Meeting participants.--Not later than 30 days after
receiving a notification from an applicant that the applicant
is seeking a Federal refinery authorization pursuant to Federal
law, the Federal coordinator appointed under subsection (a)
shall convene a meeting of representatives from all Federal and
State agencies responsible for a Federal refinery authorization
with respect to the refinery. The governor of a State shall
identify each agency of that State that is responsible for a
Federal refinery authorization with respect to that refinery.
(2) Memorandum of agreement.--(A) Not later than 90 days
after receipt of a notification described in paragraph (1), the
Federal coordinator and the other participants at a meeting
convened under paragraph (1) shall establish a memorandum of
agreement setting forth the most expeditious coordinated
schedule possible for completion of all Federal refinery
authorizations with respect to the refinery, consistent with
the full substantive and procedural review required by Federal
law. If a Federal or State agency responsible for a Federal
refinery authorization with respect to the refinery is not
represented at such meeting, the Federal coordinator shall
ensure that the schedule accommodates those Federal refinery
authorizations, consistent with Federal law. In the event of
conflict among Federal refinery authorization scheduling
requirements, the requirements of the Environmental Protection
Agency shall be given priority.
(B) Not later than 15 days after completing the memorandum
of agreement, the Federal coordinator shall publish the
memorandum of agreement in the Federal Register.
(C) The Federal coordinator shall ensure that all parties
to the memorandum of agreement are working in good faith to
carry out the memorandum of agreement, and shall facilitate the
maintenance of the schedule established therein.
(c) Consolidated Record.--The Federal coordinator shall, with the
cooperation of Federal and State administrative agencies and officials,
maintain a complete consolidated record of all decisions made or
actions taken by the Federal coordinator or by a Federal administrative
agency or officer (or State administrative agency or officer acting
under delegated Federal authority) with respect to any Federal refinery
authorization. Such record shall be the record for judicial review
under subsection (d) of decisions made or actions taken by Federal and
State administrative agencies and officials, except that, if the Court
determines that the record does not contain sufficient information, the
Court may remand the proceeding to the Federal coordinator for further
development of the consolidated record.
(d) Remedies.--
(1) In general.--The United States District Court for the
district in which the proposed refinery is located shall have
exclusive jurisdiction over any civil action for the review of
the failure of an agency or official to act on a Federal
refinery authorization in accordance with the schedule
established pursuant to the memorandum of agreement.
(2) Standing.--If an applicant or a party to a memorandum
of agreement alleges that a failure to act described in
paragraph (1) has occurred and that such failure to act would
jeopardize timely completion of the entire schedule as
established in the memorandum of agreement, such applicant or
other party may bring a cause of action under this subsection.
(3) Court action.--If an action is brought under paragraph
(2), the Court shall review whether the parties to the
memorandum of agreement have been acting in good faith, whether
the applicant has been cooperating fully with the agencies that
are responsible for issuing a Federal refinery authorization,
and any other relevant materials in the consolidated record.
Taking into consideration those factors, if the Court finds
that a failure to act described in paragraph (1) has occurred,
and that such failure to act would jeopardize timely completion
of the entire schedule as established in the memorandum of
agreement, the Court shall establish a new schedule that is the
most expeditious coordinated schedule possible for completion
of proceedings, consistent with the full substantive and
procedural review required by Federal law. The court may issue
orders to enforce any schedule it establishes under this
paragraph.
(4) Federal coordinator's action.--When any civil action is
brought under this subsection, the Federal coordinator shall
immediately file with the Court the consolidated record
compiled by the Federal coordinator pursuant to subsection (c).
(5) Expedited review.--The Court shall set any civil action
brought under this subsection for expedited consideration.
SEC. 105. DESIGNATION OF CLOSED MILITARY BASES.
(a) Designation Requirement.--Not later than 90 days after the date
of enactment of this Act, the President shall designate no less than 3
closed military installations, or portions thereof, as potentially
suitable for the construction of a refinery. At least 1 such site shall
be designated as potentially suitable for construction of a refinery to
refine biomass in order to produce biofuel.
(b) Redevelopment Authority.--The redevelopment authority for each
installation designated under subsection (a), in preparing or revising
the redevelopment plan for the installation, shall consider the
feasibility and practicability of siting a refinery on the
installation.
(c) Management and Disposal of Real Property.--The Secretary of
Defense, in managing and disposing of real property at an installation
designated under subsection (a) pursuant to the base closure law
applicable to the installation, shall give substantial deference to the
recommendations of the redevelopment authority, as contained in the
redevelopment plan for the installation, regarding the siting of a
refinery on the installation. The management and disposal of real
property at a closed military installation or portion thereof found to
be suitable for the siting of a refinery under subsection (a) shall be
carried out in the manner provided by the base closure law applicable
to the installation.
(d) Definitions.--For purposes of this section--
(1) the term ``base closure law'' means the Defense Base
Closure and Realignment Act of 1990 (part A of title XXIX of
Public Law 101-510; 10 U.S.C. 2687 note) and title II of the
Defense Authorization Amendments and Base Closure and
Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note); and
(2) the term ``closed military installation'' means a
military installation closed or approved for closure pursuant
to a base closure law.
SEC. 106. SAVINGS CLAUSE.
Nothing in this subtitle shall be construed to affect the
application of any environmental or other law, or to prevent any party
from bringing a cause of action under any environmental or other law,
including citizen suits.
SEC. 107. REFINERY REVITALIZATION REPEAL.
Subtitle H of title III of the Energy Policy Act of 2005 and the
items relating thereto in the table of contents of such Act are
repealed.
Subtitle B--Oil and Gas Development on the Coastal Plain of Alaska
SEC. 121 DEFINITIONS.
In this subtitle:
(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. 122. 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
subtitle 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 subtitle 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 subtitle 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 U.S.C. 3143) is repealed.
(2) Conforming amendment.--The table of contents in section
1 of such Act is amended by striking the item relating to
section 1003.
(c) Compliance With Requirements Under Certain Other Laws.--
(1) Compatibility.--For purposes of the National Wildlife
Refuge System Administration Act of 1966 (16 U.S.C. 668dd et
seq.), the oil and gas leasing program and activities
authorized by this section in the Coastal Plain are deemed to
be compatible with the purposes for which the Arctic National
Wildlife Refuge was established, and no further findings or
decisions are required to implement this determination.
(2) Adequacy of the department of the interior's
legislative environmental impact statement.--The ``Final
Legislative Environmental Impact Statement'' (April 1987) on
the Coastal Plain prepared pursuant to section 1002 of the
Alaska National Interest Lands Conservation Act of 1980 (16
U.S.C. 3142) and section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is
deemed to satisfy the requirements under the National
Environmental Policy Act of 1969 that apply with respect to
prelease activities, including actions authorized to be taken
by the Secretary to develop and promulgate the regulations for
the establishment of a leasing program authorized by this
subtitle before the conduct of the first lease sale.
(3) Compliance with nepa for other actions.--Before
conducting the first lease sale under this subtitle, the
Secretary shall prepare an environmental impact statement under
the National Environmental Policy Act of 1969 with respect to
the actions authorized by this subtitle 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 subtitle shall be completed
within 18 months after the date of enactment of this Act. The
Secretary shall only consider public comments that specifically
address the Secretary's preferred action and that are filed
within 20 days after publication of an environmental analysis.
Notwithstanding any other law, compliance with this paragraph
is deemed to satisfy all requirements for the analysis and
consideration of the environmental effects of proposed leasing
under this subtitle.
(d) Relationship to State and Local Authority.--Nothing in this
subtitle 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
subtitle.
(g) Regulations.--
(1) In general.--The Secretary shall prescribe such
regulations as may be necessary to carry out this subtitle,
including rules and regulations relating to protection of the
fish and wildlife, their habitat, subsistence resources, and
environment of the Coastal Plain, by no later than 15 months
after the date of enactment of this Act.
(2) Revision of regulations.--The Secretary shall
periodically review and, if appropriate, revise the rules and
regulations issued under subsection (a) to reflect any
significant biological, environmental, or engineering data that
come to the Secretary's attention.
SEC. 123. LEASE SALES.
(a) In General.--Lands may be leased pursuant to this subtitle 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 subtitle shall
be by sealed competitive cash bonus bids.
(d) Acreage Minimum in First Sale.--In the first lease sale under
this subtitle, 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 subtitle within
22 months after the date of the enactment of this Act; 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. 124. 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 123 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 subtitle 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. 125. LEASE TERMS AND CONDITIONS.
An oil or gas lease issued pursuant to this subtitle 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) 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;
(3) 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;
(4) provide that the standard of reclamation for lands
required to be reclaimed under this subtitle 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;
(5) include requirements and restrictions to provide for
reasonable protection of fish and wildlife, their habitat,
subsistence resources, and the environment as determined by the
Secretary;
(6) prohibit the export of oil produced under the lease;
and
(7) contain such other provisions as the Secretary
determines necessary to ensure compliance with the provisions
of this subtitle and the regulations issued under this
subtitle.
SEC. 126. 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 122, administer the provisions of this subtitle
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 subtitle, 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 subtitle are conducted in a manner consistent with the purposes
and environmental requirements of this subtitle.
(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 subtitle 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) 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.
(4) Prohibitions on general public access and use on all
pipeline access and service roads.
(5) Stringent reclamation and rehabilitation requirements,
consistent with the standards set forth in this subtitle,
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.
(6) Appropriate prohibitions or restrictions on access by
all modes of transportation.
(7) Appropriate prohibitions or restrictions on sand and
gravel extraction.
(8) Consolidation of facility siting.
(9) Appropriate prohibitions or restrictions on use of
explosives.
(10) 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.
(11) Avoidance or minimization of air traffic-related
disturbance to fish and wildlife.
(12) 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.
(13) Fuel storage and oil spill contingency planning.
(14) Research, monitoring, and reporting requirements.
(15) Field crew environmental briefings.
(16) Avoidance of significant adverse effects upon
subsistence hunting, fishing, and trapping by subsistence
users.
(17) Compliance with applicable air and water quality
standards.
(18) Appropriate seasonal and safety zone designations
around well sites, within which subsistence hunting and
trapping shall be limited.
(19) Reasonable stipulations for protection of cultural and
archeological resources.
(20) 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. 127. EXPEDITED JUDICIAL REVIEW.
(a) Filing of Complaint.--
(1) Deadline.--Subject to paragraph (2), any complaint
seeking judicial review of any provision of this subtitle or
any action of the Secretary under this subtitle 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 subtitle or any action of the Secretary under
this subtitle 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
subtitle, including the environmental analysis thereof, shall
be limited to whether the Secretary has complied with the terms
of this subtitle 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
subtitle 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. 128. 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 subtitle--
(1) 25 percent shall be paid to the State of Alaska; and
(2) except as otherwise provided by this Act, the balance
shall be deposited into the Treasury as miscellaneous receipts.
(b) Payments to Alaska.--Payments to the State of Alaska under this
section shall be made semiannually.
SEC. 129. 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 122(g) provisions granting rights-of-way and easements
described in subsection (a) of this section.
SEC. 130. 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. 131. 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
subtitle.
(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 subtitle, 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 subtitle.
(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.
Subtitle C--Opening of Outer Continental Shelf
SEC. 141. SHORT TITLE.
This subtitle may be cited as the ``Deep Ocean Energy Resources Act
of 2008''.
SEC. 142. POLICY.
It is the policy of the United States that--
(1) the United States is blessed with abundant energy
resources on the outer Continental Shelf and has developed a
comprehensive framework of environmental laws and regulations
and fostered the development of state-of-the-art technology
that allows for the responsible development of these resources
for the benefit of its citizenry;
(2) adjacent States are required by the circumstances to
commit significant resources in support of exploration,
development, and production activities for mineral resources on
the outer Continental Shelf, and it is fair and proper for a
portion of the receipts from such activities to be shared with
Adjacent States and their local coastal governments;
(3) the existing laws governing the leasing and production
of the mineral resources of the outer Continental Shelf have
reduced the production of mineral resources, have preempted
Adjacent States from being sufficiently involved in the
decisions regarding the allowance of mineral resource
development, and have been harmful to the national interest;
(4) the national interest is served by granting the
Adjacent States more options related to whether or not mineral
leasing should occur in the outer Continental Shelf within
their Adjacent Zones;
(5) it is not reasonably foreseeable that exploration of a
leased tract located more than 25 miles seaward of the
coastline, development and production of a natural gas
discovery located more than 25 miles seaward of the coastline,
or development and production of an oil discovery located more
than 50 miles seaward of the coastline will adversely affect
resources near the coastline;
(6) transportation of oil from a leased tract might
reasonably be foreseen, under limited circumstances, to have
the potential to adversely affect resources near the coastline
if the oil is within 50 miles of the coastline, but such
potential to adversely affect such resources is likely no
greater, and probably less, than the potential impacts from
tanker transportation because tanker spills usually involve
large releases of oil over a brief period of time; and
(7) among other bodies of inland waters, the Great Lakes,
Long Island Sound, Delaware Bay, Chesapeake Bay, Albemarle
Sound, San Francisco Bay, and Puget Sound are not part of the
outer Continental Shelf, and are not subject to leasing by the
Federal Government for the exploration, development, and
production of any mineral resources that might lie beneath
them.
SEC. 143. DEFINITIONS UNDER THE OUTER CONTINENTAL SHELF LANDS ACT.
Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331)
is amended--
(1) by amending paragraph (f) to read as follows:
``(f) The term `affected State' means the Adjacent State.'';
(2) by striking the semicolon at the end of each of
paragraphs (a) through (o) and inserting a period;
(3) by striking ``; and'' at the end of paragraph (p) and
inserting a period;
(4) by adding at the end the following:
``(r) The term `Adjacent State' means, with respect to any program,
plan, lease sale, leased tract or other activity, proposed, conducted,
or approved pursuant to the provisions of this Act, any State the laws
of which are declared, pursuant to section 4(a)(2), to be the law of
the United States for the portion of the outer Continental Shelf on
which such program, plan, lease sale, leased tract or activity
appertains or is, or is proposed to be, conducted. For purposes of this
paragraph, the term `State' includes Puerto Rico and the other
Territories of the United States.
``(s) The term `Adjacent Zone' means, with respect to any program,
plan, lease sale, leased tract, or other activity, proposed, conducted,
or approved pursuant to the provisions of this Act, the portion of the
outer Continental Shelf for which the laws of a particular Adjacent
State are declared, pursuant to section 4(a)(2), to be the law of the
United States.
``(t) The term `miles' means statute miles.
``(u) The term `coastline' has the same meaning as the term `coast
line' as defined in section 2(c) of the Submerged Lands Act (43 U.S.C.
1301(c)).
``(v) The term `Neighboring State' means a coastal State having a
common boundary at the coastline with the Adjacent State.''; and
(5) in paragraph (a), by inserting after ``control'' the
following: ``or lying within the United States exclusive
economic zone adjacent to the Territories of the United
States''.
SEC. 144. DETERMINATION OF ADJACENT ZONES AND PLANNING AREAS.
Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (43
U.S.C. 1333(a)(2)(A)) is amended in the first sentence by striking ``,
and the President'' and all that follows through the end of the
sentence and inserting the following: ``. The lines extending seaward
and defining each State's Adjacent Zone, and each OCS Planning Area,
are as indicated on the maps for each outer Continental Shelf region
entitled `Alaska OCS Region State Adjacent Zone and OCS Planning
Areas', `Pacific OCS Region State Adjacent Zones and OCS Planning
Areas', `Gulf of Mexico OCS Region State Adjacent Zones and OCS
Planning Areas', and `Atlantic OCS Region State Adjacent Zones and OCS
Planning Areas', all of which are dated September 2005 and on file in
the Office of the Director, Minerals Management Service.''.
SEC. 145. ADMINISTRATION OF LEASING.
Section 5 of the Outer Continental Shelf Lands Act (43 U.S.C. 1334)
is amended by adding at the end the following:
``(k) Voluntary Partial Relinquishment of a Lease.--Any lessee of a
producing lease may relinquish to the Secretary any portion of a lease
that the lessee has no interest in producing and that the Secretary
finds is geologically prospective. In return for any such
relinquishment, the Secretary shall provide to the lessee a royalty
incentive for the portion of the lease retained by the lessee, in
accordance with regulations promulgated by the Secretary to carry out
this subsection. The Secretary shall publish final regulations
implementing this subsection within 365 days after the date of the
enactment of the Deep Ocean Energy Resources Act of 2008.
``(l) Natural Gas Lease Regulations.--Not later than July 1, 2009,
the Secretary shall publish a final regulation that shall--
``(1) establish procedures for entering into natural gas
leases;
``(2) ensure that natural gas leases are only available for
tracts on the outer Continental Shelf that are wholly within
100 miles of the coastline within an area withdrawn from
disposition by leasing on the day after the date of enactment
of the Deep Ocean Energy Resources Act of 2008;
``(3) provide that natural gas leases shall contain the
same rights and obligations established for oil and gas leases,
except as otherwise provided in the Deep Ocean Energy Resources
Act of 2008;
``(4) provide that, in reviewing the adequacy of bids for
natural gas leases, the value of any crude oil estimated to be
contained within any tract shall be excluded;
``(5) provide that any crude oil produced from a well and
reinjected into the leased tract shall not be subject to
payment of royalty, and that the Secretary shall consider, in
setting the royalty rates for a natural gas lease, the
additional cost to the lessee of not producing any crude oil;
and
``(6) provide that any Federal law that applies to an oil
and gas lease on the outer Continental Shelf shall apply to a
natural gas lease unless otherwise clearly inapplicable.''.
SEC. 146. GRANT OF LEASES BY SECRETARY.
Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337)
is amended--
(1) in subsection (a)(1) by inserting after the first
sentence the following: ``Further, the Secretary may grant
natural gas leases in a manner similar to the granting of oil
and gas leases and under the various bidding systems available
for oil and gas leases.'';
(2) by adding at the end of subsection (b) the following:
``The Secretary may issue more than one lease for a given tract if each
lease applies to a separate and distinct range of vertical depths,
horizontal surface area, or a combination of the two. The Secretary may
issue regulations that the Secretary determines are necessary to manage
such leases consistent with the purposes of this Act.'';
(3) by amending subsection (p)(2)(B) to read as follows:
``(B) The Secretary shall provide for the payment to
coastal states, and their local coastal governments, of 75
percent of Federal receipts from projects authorized under this
section located partially or completely within the area
extending seaward of State submerged lands out to 4 marine
leagues from the coastline, and the payment to coastal states
of 50 percent of the receipts from projects completely located
in the area more than 4 marine leagues from the coastline.
Payments shall be based on a formula established by the
Secretary by rulemaking no later than 180 days after the date
of the enactment of the Deep Ocean Energy Resources Act of 2008
that provides for equitable distribution, based on proximity to
the project, among coastal states that have coastline that is
located within 200 miles of the geographic center of the
project.'';
(4) by adding at the end the following:
``(q) Natural Gas Leases.--
``(1) Right to produce natural gas.--A lessee of a natural
gas lease shall have the right to produce the natural gas from
a field on a natural gas leased tract if the Secretary
estimates that the discovered field has at least 40 percent of
the economically recoverable Btu content of the field contained
within natural gas and such natural gas is economical to
produce.
``(2) Crude oil.--A lessee of a natural gas lease may not
produce crude oil from the lease.
``(3) Estimates of btu content.--The Secretary shall make
estimates of the natural gas Btu content of discovered fields
on a natural gas lease only after the completion of at least
one exploration well, the data from which has been tied to the
results of a three-dimensional seismic survey of the field. The
Secretary may not require the lessee to further delineate any
discovered field prior to making such estimates.
``(4) Definition of natural gas.--For purposes of a natural
gas lease, natural gas means natural gas and all substances
produced in association with gas, including, but not limited
to, hydrocarbon liquids (other than crude oil) that are
obtained by the condensation of hydrocarbon vapors and separate
out in liquid form from the produced gas stream.
``(r) Removal of Restrictions on Joint Bidding in Certain Areas of
the Outer Continental Shelf.--Restrictions on joint bidders shall no
longer apply to tracts located in the Alaska OCS Region. Such
restrictions shall not apply to tracts in other OCS regions determined
to be `frontier tracts' or otherwise `high cost tracts' under final
regulations that shall be published by the Secretary by not later than
365 days after the date of the enactment of the Deep Ocean Energy
Resources Act of 2008.
``(s) Royalty Suspension Provisions.--The Secretary shall agree to
a request by any lessee to amend any lease issued for Central and
Western Gulf of Mexico tracts during the period of January 1, 1998,
through December 31, 1999, to incorporate price thresholds applicable
to royalty suspension provisions, or amend existing price thresholds,
in the amount of $40.50 per barrel (2006 dollars) for oil and for
natural gas of $6.75 per million Btu (2006 dollars). Any amended lease
shall impose the new or revised price thresholds effective October 1,
2008. Existing lease provisions shall prevail through September 30,
2008. After the date of the enactment of the Deep Ocean Energy
Resources Act of 2008, price thresholds shall apply to any royalty
suspension volumes granted by the Secretary. Unless otherwise set by
Secretary by regulation or for a particular lease sale, the price
thresholds shall be $40.50 for oil (2006 dollars) and $6.75 for natural
gas (2006 dollars).
``(t) Conservation of Resources Fees.--
``(1) Not later than one year after the date of the
enactment of the Deep Ocean Energy Resources Act of 2008, the
Secretary by regulation shall establish a conservation of
resources fee for producing leases that will apply to new and
existing leases which shall be set at $9 per barrel for oil and
$1.25 per million Btu for gas. This fee shall only apply to
leases in production located in more than 200 meters of water
for which royalties are not being paid when prices exceed
$40.50 per barrel for oil and $6.75 per million Btu for natural
gas in 2006, dollars. This fee shall apply to production from
and after October 1, 2008, and shall be treated as offsetting
receipts.
``(2) Not later than one year after the date of the
enactment of the Deep Ocean Energy Resources Act of 2008, the
Secretary by regulation shall establish a conservation of
resources fee for nonproducing leases that will apply to new
and existing leases which shall be set at $3.75 per acre per
year. This fee shall apply from and after October 1, 2008, and
shall be treated as offsetting receipts.'';
(5) by striking subsection (a)(3)(A) and redesignating the
subsequent subparagraphs as subparagraphs (A) and (B),
respectively;
(6) in subsection (a)(3)(A) (as so redesignated) by
striking ``In the Western'' and all that follows through ``the
Secretary'' the first place it appears and inserting ``The
Secretary''; and
(7) effective October 1, 2008, in subsection (g)--
(A) by striking all after ``(g)'', except paragraph
(3);
(B) by striking the last sentence of paragraph (3);
and
(C) by striking ``(3)''.
SEC. 147. DISPOSITION OF RECEIPTS.
Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338)
is amended--
(1) by designating the existing text as subsection (a);
(2) in subsection (a) (as so designated) by inserting ``,
if not paid as otherwise provided in this title'' after
``receipts''; and
(3) by adding the following:
``(b) Treatment of OCS Receipts From Tracts Completely Within 100
Miles of the Coastline.--
``(1) Deposit.--The Secretary shall deposit into a separate
account in the Treasury the portion of OCS Receipts for each
fiscal year that will be shared under paragraphs (2), (3), and
(4).
``(2) Phased-in receipts sharing.--
``(A) Beginning October 1, 2008, the Secretary
shall share OCS Receipts derived from the following
areas:
``(i) Lease tracts located on portions of
the Gulf of Mexico OCS Region completely beyond
4 marine leagues from any coastline and
completely within 100 miles of any coastline
that are available for leasing under the 2002-
2007 5-Year Oil and Gas Leasing Program in
effect prior to the date of the enactment of
the Deep Ocean Energy Resources Act of 2008.
``(ii) Lease tracts in production prior to
October 1, 2008, completely beyond 4 marine
leagues from any coastline and completely
within 100 miles of any coastline located on
portions of the OCS that were not available for
leasing under the 2002-2007 5-Year OCS Oil and
Gas Leasing Program in effect prior to the date
of the enactment of the Deep Ocean Energy
Resources Act of 2008.
``(iii) Lease tracts for which leases are
issued prior to October 1, 2008, located in the
Alaska OCS Region completely beyond 4 marine
leagues from any coastline and completely
within 100 miles of the coastline.
``(B) The Secretary shall share the following
percentages of OCS Receipts from the leases described
in subparagraph (A) derived during the fiscal year
indicated:
``(i) For fiscal year 2009, 4.6 percent.
``(ii) For fiscal year 2010, 5.95 percent.
``(iii) For fiscal year 2011, 6.8 percent.
``(iv) For fiscal year 2012, 7.65 percent.
``(v) For fiscal year 2013, 10.20 percent.
``(vi) For fiscal year 2014, 12.75 percent.
``(vii) For fiscal year 2015, 15.30
percent.
``(viii) For fiscal year 2016, 17.85
percent.
``(ix) For fiscal year 2017, 20.40 percent.
``(x) For fiscal year 2018, 22.95 percent.
``(xi) For fiscal year 2019, 25.50 percent.
``(xii) For fiscal year 2020, 28.05
percent.
``(xiii) For fiscal year 2021, 30.60
percent.
``(xiv) For fiscal year 2022, 33.15
percent.
``(xv) For fiscal year 2023 35.70 percent.
``(xvi) For fiscal year 2024 and each
subsequent fiscalyear, 37.5 percent.
``(C) The provisions of this paragraph shall not
apply to leases that could not have been issued but for
section 5(k) of this Act or section 146(2) of the Deep
Ocean Energy Resources Act of 2008.
``(3) Immediate receipts sharing.--Beginning October 1,
2008, the Secretary shall share 37.5 percent of OCS Receipts
derived from all leases located completely beyond 4 marine
leagues from any coastline and completely within 100 miles of
any coastline not included within the provisions of paragraph
(2).
``(4) Receipts sharing from tracts within 4 marine leagues
of any coastline.--
``(A) Areas described in paragraph (2).--
``(i) Beginning October 1, 2008, and
continuing through September 30, 2013, the
Secretary shall share 25 percent of OCS
Receipts derived from all leases located within
4 marine leagues from any coastline within
areas described in paragraph (2). For each
fiscal year after September 30, 2013, the
Secretary shall increase the percent shared in
5 percent increments each fiscal year until the
sharing rate for all leases located within 4
marine leagues from any coastline within areas
described in paragraph (2) becomes 37.5
percent.
``(ii) During fiscal year 2018, the
Secretary shall conduct an analysis of all of
the areas described in paragraph (3) and
subsection (c)(3) to determine the total of OCS
Receipts derived from such areas during the
period of fiscal year 2009 through fiscal year
2018. The Secretary shall subtract the amount
of $4 billion from the total of such OCS
Receipts. If the result is a positive number,
the Secretary shall divide such positive number
by $4 billion. The resulting quotient, not to
exceed 0.5, shall then be multiplied times 25.
The product of such multiplication shall be
added to 37.5 and the sum shall be the percent
that the Secretary shall share for fiscal year
2019 and all future years from OCS Receipts
derived from all leases located within 4 marine
leagues from any coastline within areas
described in paragraph (2), unless increased by
the provisions of (iii).
``(iii) Beginning October 1, 2019, the
Secretary shall share, in addition to the share
established by (i), as modified by (ii) if any,
amounts determined as follows, with the total
of the amounts shared under this paragraph not
to exceed in any fiscal year an amount equal to
63.75 percent of total OCS Receipts derived
from all leases located within 4 marine leagues
from any coastline within areas described in
paragraph (2)--25 percent of the total of OCS
Receipts derived from areas described in
paragraph (3) and subsection (c)(3) that exceed
the following amounts for the fiscal year
indicated: for fiscal year 2019 the amount of
$900,000,000 and for each fiscal year
thereafter add $100,000,000. Amounts added
under this clause to be shared, if any, for any
fiscal year shall be added to the sharing base
for all subsequent years and shall be allocated
among State Adjacent Zones on a basis
proportional to the result from the calculation
in clause (i).
``(B) Areas not described in paragraph (2).--
Beginning October 1, 2008, the Secretary shall share
63.75 percent of OCS receipts derived from all leases
located completely or partially within 4 marine leagues
from any coastline within areas not described paragraph
(2).
``(5) Allocations.--The Secretary shall allocate the OCS
Receipts deposited into the separate account established by
paragraph (1) that are shared under paragraphs (2), (3), and
(4) as follows:
``(A) Bonus bids.--Deposits derived from bonus bids
from a leased tract, including interest thereon, shall
be allocated at the end of each fiscal year to the
Adjacent State.
``(B) Royalties.--Deposits derived from royalties
from a leased tract, including interest thereon, shall
be allocated at the end of each fiscal year to the
Adjacent State and any other producing State or States
with a leased tract within its Adjacent Zone within 100
miles of its coastline that generated royalties during
the fiscal year, if the other producing or States have
a coastline point within 300 miles of any portion of
the leased tract, in which case the amount allocated
for the leased tract shall be--
``(i) one-third to the Adjacent State; and
``(ii) two-thirds to each producing State,
including the Adjacent State, inversely
proportional to the distance between the
nearest point on the coastline of the producing
State and the geographic center of the leased
tract.
``(c) Treatment of OCS Receipts From Tracts Partially or Completely
Beyond 100 Miles of the Coastline.--
``(1) Deposit.--The Secretary shall deposit into a separate
account in the Treasury the portion of OCS Receipts for each
fiscal year that will be shared under paragraphs (2) and (3).
``(2) Phased-in receipts sharing.--
``(A) Beginning October 1, 2008, the Secretary
shall share OCS Receipts derived from the following
areas:
``(i) Lease tracts located on portions of
the Gulf of Mexico OCS Region partially or
completely beyond 100 miles of any coastline
that were available for leasing under the 2002-
2007 5-Year Oil and Gas Leasing Program in
effect prior to the date of enactment of the
Deep Ocean Energy Resources Act of 2008.
``(ii) Lease tracts in production prior to
October 1, 2008, partially or completely beyond
100 miles of any coastline located on portions
of the OCS that were not available for leasing
under the 2007-2012 5-Year OCS Oil and Gas
Leasing Program in effect prior to the date of
enactment of the Deep Ocean Energy Resources
Act of 2008.
``(iii) Lease tracts for which leases are
issued prior to October 1, 2008, located in the
Alaska OCS Region partially or completely
beyond 100 miles of the coastline.
``(B) The Secretary shall share the following
percentages of OCS Receipts from the leases described
in subparagraph (A) derived during the fiscal year
indicated:
``(i) For fiscal year 2009, 4.6 percent.
``(ii) For fiscal year 2010, 5.95 percent.
``(iii) For fiscal year 2011, 6.80 percent.
``(iv) For fiscal year 2012, 7.65 percent.
``(v) For fiscal year 2013, 10.20 percent.
``(vi) For fiscal year 2014, 12.75 percent.
``(vii) For fiscal year 2015, 15.30
percent.
``(viii) For fiscal year 2016, 17.85
percent.
``(ix) For fiscal year 2017, 20.40 percent.
``(x) For fiscal year 2018, 22.95 percent.
``(xi) For fiscal year 2019, 25.50 percent.
``(xii) For fiscal year 2020, 28.05
percent.
``(xiii) For fiscal year 2021, 30.60
percent.
``(xiv) For fiscal year 2022, 33.15
percent.
``(xv) For fiscal year 2023, 35.70 percent.
``(xvi) For fiscal year 2024 and each
subsequent fiscal year, 37.5 percent.
``(C) The provisions of this paragraph shall not
apply to leases that could not have been issued but for
section 5(k) of this Act or section 146(2) of the Deep
Ocean Energy Resources Act of 2008.
``(3) Immediate receipts sharing.--Beginning October 1,
2008, the Secretary shall share 37.5 percent of OCS Receipts
derived on and after October 1, 2008, from all leases located
partially or completely beyond 100 miles of any coastline not
included within the provisions of paragraph (2), except that
the Secretary shall only share 25 percent of such OCS Receipts
derived from all such leases within a State's Adjacent Zone if
no leasing is allowed within any portion of that State's
Adjacent Zone located completely within 100 miles of any
coastline.
``(4) Allocations.--The Secretary shall allocate the OCS
Receipts deposited into the separate account established by
paragraph (1) that are shared under paragraphs (2) and (3) as
follows:
``(A) Bonus bids.--Deposits derived from bonus bids
from a leased tract, including interest thereon, shall
be allocated at the end of each fiscal year to the
Adjacent State.
``(B) Royalties.--Deposits derived from royalties
from a leased tract, including interest thereon, shall
be allocated at the end of each fiscal year to the
Adjacent State and any other producing State or States
with a leased tract within its Adjacent Zone partially
or completely beyond 100 miles of its coastline that
generated royalties during the fiscal year, if the
other producing State or States have a coastline point
within 300 miles of any portion of the leased tract, in
which case the amount allocated for the leased tract
shall be--
``(i) one-third to the Adjacent State; and
``(ii) two-thirds to each producing State,
including the Adjacent State, inversely
proportional to the distance between the
nearest point on the coastline of the producing
State and the geographic center of the leased
tract.
``(d) Transmission of Allocations.--
``(1) In general.--Not later than 90 days after the end of
each fiscal year, the Secretary shall transmit--
``(A) to each State 60 percent of such State's
allocations under subsections (b)(5)(A), (b)(5)(B),
(c)(4)(A), and (c)(4)(B) for the immediate prior fiscal
year;
``(B) to each coastal county-equivalent and
municipal political subdivisions of such State a total
of 40 percent of such State's allocations under
subsections (b)(5)(A), (b)(5)(B), (c)(4)(A), and
(c)(4)(B), together with all accrued interest thereon;
and
``(C) the remaining allocations under subsections
(b)(5) and (c)(4), together with all accrued interest
thereon.
``(2) Allocations to coastal county-equivalent political
subdivisions.--The Secretary shall make an initial allocation
of the OCS Receipts to be shared under paragraph (1)(B) as
follows:
``(A) 25 percent shall be allocated to coastal
county-equivalent political subdivisions that are
completely more than 25 miles landward of the coastline
and at least a part of which lies not more than 75
miles landward from the coastline, with the allocation
among such coastal county-equivalent political
subdivisions based on population.
``(B) 75 percent shall be allocated to coastal
county-equivalent political subdivisions that are
completely or partially less than 25 miles landward of
the coastline, with the allocation among such coastal
county-equivalent political subdivisions to be further
allocated as follows:
``(i) 25 percent shall be allocated based
on the ratio of such coastal county-equivalent
political subdivision's population to the
coastal population of all coastal county-
equivalent political subdivisions in the State.
``(ii) 25 percent shall be allocated based
on the ratio of such coastal county-equivalent
political subdivision's coastline miles to the
coastline miles of all coastal county-
equivalent political subdivisions in the State
as calculated by the Secretary. In such
calculations, coastal county-equivalent
political subdivisions without a coastline
shall be considered to have 50 percent of the
average coastline miles of the coastal county-
equivalent political subdivisions that do have
coastlines.
``(iii) 25 percent shall be allocated to
all coastal county-equivalent political
subdivisions having a coastline point within
300 miles of the leased tract for which OCS
Receipts are being shared based on a formula
that allocates the funds based on such coastal
county-equivalent political subdivision's
relative distance from the leased tract.
``(iv) 25 percent shall be allocated to all
coastal county-equivalent political
subdivisions having a coastline point within
300 miles of the leased tract for which OCS
Receipts are being shared based on the relative
level of outer Continental Shelf oil and gas
activities in a coastal political subdivision
compared to the level of outer Continental
Shelf activities in all coastal political
subdivisions in the State. The Secretary shall
define the term `outer Continental Shelf oil
and gas activities' for purposes of this
subparagraph to include, but not be limited to,
construction of vessels, drillships, and
platforms involved in exploration, production,
and development on the outer Continental Shelf;
support and supply bases, ports, and related
activities; offices of geologists,
geophysicists, engineers, and other
professionals involved in support of
exploration, production, and development of oil
and gas on the outer Continental Shelf;
pipelines and other means of transporting oil
and gas production from the outer Continental
Shelf; and processing and refining of oil and
gas production from the outer Continental
Shelf. For purposes of this subparagraph, if a
coastal county-equivalent political subdivision
does not have a coastline, its coastal point
shall be the point on the coastline closest to
it.
``(3) Allocations to coastal municipal political
subdivisions.--The initial allocation to each coastal county-
equivalent political subdivision under paragraph (2) shall be
further allocated to the coastal county-equivalent political
subdivision and any coastal municipal political subdivisions
located partially or wholly within the boundaries of the
coastal county-equivalent political subdivision as follows:
``(A) One-third shall be allocated to the coastal
county-equivalent political subdivision.
``(B) Two-thirds shall be allocated on a per capita
basis to the municipal political subdivisions and the
county-equivalent political subdivision, with the
allocation to the latter based upon its population not
included within the boundaries of a municipal political
subdivision.
``(e) Investment of Deposits.--Amounts deposited under this section
shall be invested by the Secretary of the Treasury in securities backed
by the full faith and credit of the United States having maturities
suitable to the needs of the account in which they are deposited and
yielding the highest reasonably available interest rates as determined
by the Secretary of the Treasury.
``(f) Use of Funds.--A recipient of funds under this section may
use the funds for one or more of the following:
``(1) To reduce in-State college tuition at public
institutions of higher learning and otherwise support public
education, including career technical education.
``(2) To make transportation infrastructure improvements.
``(3) To reduce taxes.
``(4) To promote, fund, and provide for--
``(A) coastal or environmental restoration;
``(B) fish, wildlife, and marine life habitat
enhancement;
``(C) waterways construction and maintenance;
``(D) levee construction and maintenance and shore
protection; and
``(E) marine and oceanographic education and
research.
``(5) To promote, fund, and provide for--
``(A) infrastructure associated with energy
production activities conducted on the outer
Continental Shelf;
``(B) energy demonstration projects;
``(C) supporting infrastructure for shore-based
energy projects;
``(D) State geologic programs, including geologic
mapping and data storage programs, and state
geophysical data acquisition;
``(E) State seismic monitoring programs, including
operation of monitoring stations;
``(F) development of oil and gas resources through
enhanced recovery techniques;
``(G) alternative energy development, including bio
fuels, coal-to-liquids, oil shale, tar sands,
geothermal, geopressure, wind, waves, currents, hydro,
and other renewable energy;
``(H) energy efficiency and conservation programs;
and
``(I) front-end engineering and design for
facilities that produce liquid fuels from hydrocarbons
and other biological matter.
``(6) To promote, fund, and provide for--
``(A) historic preservation programs and projects;
``(B) natural disaster planning and response; and
``(C) hurricane and natural disaster insurance
programs.
``(7) For any other purpose as determined by State law.
``(g) No Accounting Required.--No recipient of funds under this
section shall be required to account to the Federal Government for the
expenditure of such funds, except as otherwise may be required by law.
However, States may enact legislation providing for accounting for and
auditing of such expenditures. Further, funds allocated under this
section to States and political subdivisions may be used as matching
funds for other Federal programs.
``(h) Effect of Future Laws.--Enactment of any future Federal
statute that has the effect, as determined by the Secretary, of
restricting any Federal agency from spending appropriated funds, or
otherwise preventing it from fulfilling its pre-existing
responsibilities as of the date of enactment of the statute, unless
such responsibilities have been reassigned to another Federal agency by
the statute with no prevention of performance, to issue any permit or
other approval impacting on the OCS oil and gas leasing program, or any
lease issued thereunder, or to implement any provision of this Act
shall automatically prohibit any sharing of OCS Receipts under this
section directly with the States, and their coastal political
subdivisions, for the duration of the restriction. The Secretary shall
make the determination of the existence of such restricting effects
within 30 days of a petition by any outer Continental Shelf lessee or
producing State.
``(i) Definitions.--In this section:
``(1) Coastal county-equivalent political subdivision.--The
term `coastal county-equivalent political subdivision' means a
political jurisdiction immediately below the level of State
government, including a county, parish, borough in Alaska,
independent municipality not part of a county, parish, or
borough in Alaska, or other equivalent subdivision of a coastal
State, that lies within the coastal zone.
``(2) Coastal municipal political subdivision.--The term
`coastal municipal political subdivision' means a municipality
located within and part of a county, parish, borough in Alaska,
or other equivalent subdivision of a State, all or part of
which coastal municipal political subdivision lies within the
coastal zone.
``(3) Coastal population.--The term `coastal population'
means the population of all coastal county-equivalent political
subdivisions, as determined by the most recent official data of
the Census Bureau.
``(4) Coastal zone.--The term `coastal zone' means that
portion of a coastal State, including the entire territory of
any coastal county-equivalent political subdivision at least a
part of which lies, within 75 miles landward from the
coastline, or a greater distance as determined by State law
enacted to implement this section.
``(5) Bonus bids.--The term `bonus bids' means all funds
received by the Secretary to issue an outer Continental Shelf
minerals lease.
``(6) Royalties.--The term `royalties' means all funds
received by the Secretary from production of oil or natural
gas, or the sale of production taken in-kind, from an outer
Continental Shelf minerals lease.
``(7) Producing state.--The term `producing State' means an
Adjacent State having an Adjacent Zone containing leased tracts
from which OCS Receipts were derived.
``(8) OCS receipts.--The term `OCS Receipts' means bonus
bids, royalties, and conservation of resources fees.''.
SEC. 148. RESERVATION OF LANDS AND RIGHTS.
Section 12 of the Outer Continental Shelf Lands Act (43 U.S.C.
1341) is amended--
(1) in subsection (a) by adding at the end the following:
``The President may partially or completely revise or revoke
any prior withdrawal made by the President under the authority
of this section. The President may not revise or revoke a
withdrawal that is extended by a State under subsection (h),
nor may the President withdraw from leasing any area for which
a State failed to prohibit, or petition to prohibit, leasing
under subsection (g). Further, in the area of the outer
Continental Shelf more than 100 miles from any coastline, not
more than 25 percent of the acreage of any OCS Planning Area
may be withdrawn from leasing under this section at any point
in time. A withdrawal by the President may be for a term not to
exceed 10 years. When considering potential uses of the outer
Continental Shelf, to the maximum extent possible, the
President shall accommodate competing interests and potential
uses.'';
(2) by adding at the end the following:
``(g) Availability for Leasing Within Certain Areas of the Outer
Continental Shelf.--
``(1) Prohibition against leasing.--
``(A) Unavailable for leasing without state
request.--Except as otherwise provided in this
subsection, from and after enactment of the Deep Ocean
Energy Resources Act of 2008, the Secretary shall not
offer for leasing for oil and gas, or natural gas, any
area within 50 miles of the coastline that was
withdrawn from disposition by leasing in the Atlantic
OCS Region or the Pacific OCS Region, or the Gulf of
Mexico OCS Region Eastern Planning Area, as depicted on
the maps referred to in this subparagraph, under the
`Memorandum on Withdrawal of Certain Areas of the
United States Outer Continental Shelf from Leasing
Disposition', 34 Weekly Comp. Pres. Doc. 1111, dated
June 12, 1998, or any area within 50 miles of the
coastline not withdrawn under that Memorandum that is
included within the Gulf of Mexico OCS Region Eastern
Planning Area as indicated on the map entitled `Gulf of
Mexico OCS Region State Adjacent Zones and OCS Planning
Areas' or the Florida Straits Planning Area as
indicated on the map entitled `Atlantic OCS Region
State Adjacent Zones and OCS Planning Areas', both of
which are dated September 2005 and on file in the
Office of the Director, Minerals Management Service.
``(B) Areas between 50 and 100 miles from the
coastline.--Unless an Adjacent State petitions under
subsection (h) within one year after the date of the
enactment of the Deep Ocean Energy Resources Act of
2008 for natural gas leasing or by June 30, 2011, for
oil and gas leasing, the Secretary shall offer for
leasing any area more than 50 miles but less than 100
miles from the coastline that was withdrawn from
disposition by leasing in the Atlantic OCS Region, the
Pacific OCS Region, or the Gulf of Mexico OCS Region
Eastern Planning Area, as depicted on the maps referred
to in this subparagraph, under the `Memorandum on
Withdrawal of Certain Areas of the United States Outer
Continental Shelf from Leasing Disposition', 34 Weekly
Comp. Pres. Doc. 1111, dated June 12, 1998, or any area
more than 50 miles but less than 100 miles of the
coastline not withdrawn under that Memorandum that is
included within the Gulf of Mexico OCS Region Eastern
Planning Area as indicated on the map entitled `Gulf of
Mexico OCS Region State Adjacent Zones and OCS Planning
Areas' or within the Florida Straits Planning Area as
indicated on the map entitled `Atlantic OCS Region
State Adjacent Zones and OCS Planning Areas', both of
which are dated September 2005 and on file in the
Office of the Director, Minerals Management Service.
``(2) Revocation of withdrawal.--The provisions of the
`Memorandum on Withdrawal of Certain Areas of the United States
Outer Continental Shelf from Leasing Disposition', 34 Weekly
Comp. Pres. Doc. 1111, dated June 12, 1998, are hereby revoked
and are no longer in effect. Any tract only partially added to
the Gulf of Mexico OCS Region Central Planning Area by this Act
shall be eligible for leasing of the part of such tract that is
included within the Gulf of Mexico OCS Region Central Planning
Area, and the remainder of such tract that lies outside of the
Gulf of Mexico OCS Region Central Planning Area may be
developed and produced by the lessee of such partial tract
using extended reach or similar drilling from a location on a
leased area. Further, any area in the OCS withdrawn from
leasing may be leased, and thereafter developed and produced by
the lessee using extended reach or similar drilling from a
location on a leased area located in an area available for
leasing.
``(3) Petition for leasing.--
``(A) In general.--The Governor of the State, upon
concurrence of its legislature, may submit to the
Secretary a petition requesting that the Secretary make
available any area that is within the State's Adjacent
Zone, included within the provisions of paragraph (1),
and that (i) is greater than 25 miles from any point on
the coastline of a Neighboring State for the conduct of
offshore leasing, pre-leasing, and related activities
with respect to natural gas leasing; or (ii) is greater
than 50 miles from any point on the coastline of a
Neighboring State for the conduct of offshore leasing,
pre-leasing, and related activities with respect to oil
and gas leasing. The Adjacent State may also petition
for leasing any other area within its Adjacent Zone if
leasing is allowed in the similar area of the Adjacent
Zone of the applicable Neighboring State, or if not
allowed, if the Neighboring State, acting through its
Governor, expresses its concurrence with the petition.
The Secretary shall only consider such a petition upon
making a finding that leasing is allowed in the similar
area of the Adjacent Zone of the applicable Neighboring
State or upon receipt of the concurrence of the
Neighboring State. The date of receipt by the Secretary
of such concurrence by the Neighboring State shall
constitute the date of receipt of the petition for that
area for which the concurrence applies. Except for any
area described in the last sentence of paragraph (2), a
petition for leasing any part of the Alabama Adjacent
Zone that is a part of the Gulf of Mexico Eastern
Planning Area, as indicated on the map entitled `Gulf
of Mexico OCS Region State Adjacent Zones and OCS
Planning Areas' which is dated September 2005 and on
file in the Office of the Director, Minerals Management
Service, shall require the concurrence of both Alabama
and Florida.
``(B) Limitations on leasing.--In its petition, a
State with an Adjacent Zone that contains leased tracts
may condition new leasing for oil and gas, or natural
gas for tracts within 25 miles of the coastline by--
``(i) requiring a net reduction in the
number of production platforms;
``(ii) requiring a net increase in the
average distance of production platforms from
the coastline;
``(iii) limiting permanent surface
occupancy on new leases to areas that are more
than 10 miles from the coastline;
``(iv) limiting some tracts to being
produced from shore or from platforms located
on other tracts; or
``(v) other conditions that the Adjacent
State may deem appropriate as long as the
Secretary does not determine that production is
made economically or technically impracticable
or otherwise impossible.
``(C) Action by secretary.--Not later than 90 days
after receipt of a petition under subparagraph (A), the
Secretary shall approve the petition, unless the
Secretary determines that leasing the area would
probably cause serious harm or damage to the marine
resources of the State's Adjacent Zone. Prior to
approving the petition, the Secretary shall complete an
environmental assessment that documents the anticipated
environmental effects of leasing in the area included
within the scope of the petition.
``(D) Failure to act.--If the Secretary fails to
approve or deny a petition in accordance with
subparagraph (C) the petition shall be considered to be
approved 90 days after receipt of the petition.
``(E) Amendment of the 5-year leasing program.--
Notwithstanding section 18, within 180 days of the
approval of a petition under subparagraph (C) or (D),
after the expiration of the time limits in paragraph
(1)(B), and within 180 days after the enactment of the
Deep Ocean Energy Resources Act of 2008 for the areas
made available for leasing under paragraph (2), the
Secretary shall amend the current 5-Year Outer
Continental Shelf Oil and Gas Leasing Program to
include a lease sale or sales for at least 75 percent
of the associated areas, unless there are, from the
date of approval, expiration of such time limits, or
enactment, as applicable, fewer than 12 months
remaining in the current 5-Year Leasing Program in
which case the Secretary shall include the associated
areas within lease sales under the next 5-Year Leasing
Program. For purposes of amending the 5-Year Program in
accordance with this section, further consultations
with States shall not be required. For purposes of this
section, an environmental assessment performed under
the provisions of the National Environmental Policy Act
of 1969 to assess the effects of approving the petition
shall be sufficient to amend the 5-Year Leasing
Program.
``(h) Option To Extend Withdrawal From Leasing Within Certain Areas
of the Outer Continental Shelf.--A State, through its Governor and upon
the concurrence of its legislature, may extend for a period of time of
up to 5 years for each extension the withdrawal from leasing for all or
part of any area within the State's Adjacent Zone located more than 50
miles, but less than 100 miles, from the coastline that is subject to
subsection (g)(1)(B). A State may extend multiple times for any
particular area but not more than once per calendar year for any
particular area. A State must prepare separate extensions, with
separate votes by its legislature, for oil and gas leasing and for
natural gas leasing. An extension by a State may affect some areas to
be withdrawn from all leasing and some areas to be withdrawn only from
one type of leasing. Extensions of the withdrawal from leasing of any
part of the Alabama Adjacent Zone that is more than 50 miles, but less
than 100 miles, from the coastline that is a part of the Gulf of Mexico
OCS Region Eastern Planning Area, as indicated on the map entitled
`Gulf of Mexico OCS Region State Adjacent Zones and OCS Planning Areas'
which is dated September 2005 and on file in the Office of the
Director, Minerals Management Service, may be made by either Alabama or
Florida.
``(i) Effect of Other Laws.--Adoption by any Adjacent State of any
constitutional provision, or enactment of any State statute, that has
the effect, as determined by the Secretary, of restricting either the
Governor or the Legislature, or both, from exercising full discretion
related to subsection (g) or (h), or both, shall automatically (1)
prohibit any sharing of OCS Receipts under this Act with the Adjacent
State, and its coastal political subdivisions, and (2) prohibit the
Adjacent State from exercising any authority under subsection (h), for
the duration of the restriction. The Secretary shall make the
determination of the existence of such restricting constitutional
provision or State statute within 30 days of a petition by any outer
Continental Shelf lessee or coastal State.
``(j) Prohibition on Leasing East of the Military Mission Line.--
``(1) Notwithstanding any other provision of law, from and
after the enactment of the Deep Ocean Energy Resources Act of
2008, no area of the outer Continental Shelf located in the
Gulf of Mexico east of the military mission line may be offered
for leasing for oil and gas or natural gas prior to January 1,
2022.
``(2) In this subsection, the term `military mission line'
means a line located at 86 degrees, 41 minutes West Longitude,
and extending south from the coast of Florida to the outer
boundary of United States territorial waters in the Gulf of
Mexico.''.
SEC. 149. OUTER CONTINENTAL SHELF LEASING PROGRAM.
Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C.
1344) is amended--
(1) in subsection (a), by adding at the end of paragraph
(3) the following: ``The Secretary shall, in each 5-year
program, include lease sales that when viewed as a whole
propose to offer for oil and gas or natural gas leasing at
least 75 percent of the available unleased acreage within each
OCS Planning Area. Available unleased acreage is that portion
of the outer Continental Shelf that is not under lease at the
time of the proposed lease sale, and has not otherwise been
made unavailable for leasing by law.'';
(2) in subsection (c), by striking so much as precedes
paragraph (3) and inserting the following:
``(c)(1) During the preparation of any proposed leasing program
under this section, the Secretary shall consider and analyze leasing
throughout the entire Outer Continental Shelf without regard to any
other law affecting such leasing. During this preparation the Secretary
shall invite and consider suggestions from any interested Federal
agency, including the Attorney General, in consultation with the
Federal Trade Commission, and from the Governor of any coastal State.
The Secretary may also invite or consider any suggestions from the
executive of any local government in a coastal State that have been
previously submitted to the Governor of such State, and from any other
person. Further, the Secretary shall consult with the Secretary of
Defense regarding military operational needs in the outer Continental
Shelf. The Secretary shall work with the Secretary of Defense to
resolve any conflicts that might arise regarding offering any area of
the outer Continental Shelf for oil and gas or natural gas leasing. If
the Secretaries are not able to resolve all such conflicts, any
unresolved issues shall be elevated to the President for resolution.
``(2) After the consideration and analysis required by paragraph
(1), including the consideration of the suggestions received from any
interested Federal agency, the Federal Trade Commission, the Governor
of any coastal State, any local government of a coastal State, and any
other person, the Secretary shall publish in the Federal Register a
proposed leasing program accompanied by a draft environmental impact
statement prepared pursuant to the National Environmental Policy Act of
1969. After the publishing of the proposed leasing program and during
the comment period provided for on the draft environmental impact
statement, the Secretary shall submit a copy of the proposed program to
the Governor of each affected State for review and comment. The
Governor may solicit comments from those executives of local
governments in the Governor's State that the Governor, in the
discretion of the Governor, determines will be affected by the proposed
program. If any comment by such Governor is received by the Secretary
at least 15 days prior to submission to the Congress pursuant to
paragraph (3) and includes a request for any modification of such
proposed program, the Secretary shall reply in writing, granting or
denying such request in whole or in part, or granting such request in
such modified form as the Secretary considers appropriate, and stating
the Secretary's reasons therefor. All such correspondence between the
Secretary and the Governor of any affected State, together with any
additional information and data relating thereto, shall accompany such
proposed program when it is submitted to the Congress.''; and
(3) by adding at the end the following:
``(i) Projection of State Adjacent Zone Resources and State and
Local Government Shares of OCS Receipts.--Concurrent with the
publication of the scoping notice at the beginning of the development
of each 5-year outer Continental Shelf oil and gas leasing program, or
as soon thereafter as possible, the Secretary shall--
``(1) provide to each Adjacent State a current estimate of
proven and potential oil and gas resources located within the
State's Adjacent Zone; and
``(2) provide to each Adjacent State, and coastal political
subdivisions thereof, a best-efforts projection of the OCS
Receipts that the Secretary expects will be shared with each
Adjacent State, and its coastal political subdivisions, using
the assumption that the unleased tracts within the State's
Adjacent Zone are fully made available for leasing, including
long-term projected OCS Receipts. In addition, the Secretary
shall include a macroeconomic estimate of the impact of such
leasing on the national economy and each State's economy,
including investment, jobs, revenues, personal income, and
other categories.''.
SEC. 150. COORDINATION WITH ADJACENT STATES.
Section 19 of the Outer Continental Shelf Lands Act (43 U.S.C.
1345) is amended--
(1) in subsection (a) in the first sentence by inserting
``, for any tract located within the Adjacent State's Adjacent
Zone,'' after ``government''; and
(2) by adding the following:
``(f)(1) No Federal agency may permit or otherwise approve, without
the concurrence of the Adjacent State, the construction of a crude oil
or petroleum products (or both) pipeline within the part of the
Adjacent State's Adjacent Zone that is withdrawn from oil and gas or
natural gas leasing, except that such a pipeline may be approved,
without such Adjacent State's concurrence, to pass through such
Adjacent Zone if at least 50 percent of the production projected to be
carried by the pipeline within its first 10 years of operation is from
areas of the Adjacent State's Adjacent Zone.
``(2) No State may prohibit the construction within its Adjacent
Zone or its State waters of a natural gas pipeline that will transport
natural gas produced from the outer Continental Shelf. However, an
Adjacent State may prevent a proposed natural gas pipeline landing
location if it proposes two alternate landing locations in the Adjacent
State, acceptable to the Adjacent State, located within 50 miles on
either side of the proposed landing location.''.
SEC. 151. ENVIRONMENTAL STUDIES.
Section 20(d) of the Outer Continental Shelf Lands Act (43 U.S.C.
1346) is amended--
(1) by inserting ``(1)'' after ``(d)''; and
(2) by adding at the end the following:
``(2) For all programs, lease sales, leases, and actions under this
Act, the following shall apply regarding the application of the
National Environmental Policy Act of 1969:
``(A) Granting or directing lease suspensions and the
conduct of all preliminary activities on outer Continental
Shelf tracts, including seismic activities, are categorically
excluded from the need to prepare either an environmental
assessment or an environmental impact statement, and the
Secretary shall not be required to analyze whether any
exceptions to a categorical exclusion apply for activities
conducted under the authority of this Act.
``(B) The environmental impact statement developed in
support of each 5-year oil and gas leasing program provides the
environmental analysis for all lease sales to be conducted
under the program and such sales shall not be subject to
further environmental analysis.
``(C) Exploration plans shall not be subject to any
requirement to prepare an environmental impact statement, and
the Secretary may find that exploration plans are eligible for
categorical exclusion due to the impacts already being
considered within an environmental impact statement or due to
mitigation measures included within the plan.
``(D) Within each OCS Planning Area, after the preparation
of the first development and production plan environmental
impact statement for a leased tract within the Area, future
development and production plans for leased tracts within the
Area shall only require the preparation of an environmental
assessment unless the most recent development and production
plan environmental impact statement within the Area was
finalized more than 10 years prior to the date of the approval
of the plan, in which case an environmental impact statement
shall be required.''.
SEC. 152. FEDERAL ENERGY NATURAL RESOURCES ENHANCEMENT ACT OF 2008.
(a) Short Title.--This section may be cited as the ``Federal Energy
Natural Resources Enhancement Act of 2008''.
(b) Findings.--The Congress finds the following:
(1) Energy and minerals exploration, development, and
production on Federal onshore and offshore lands, including
bio-based fuel, natural gas, minerals, oil, geothermal, and
power from wind, waves, currents, and thermal energy, involves
significant outlays of funds by Federal and State wildlife,
fish, and natural resource management agencies for
environmental studies, planning, development, monitoring, and
management of wildlife, fish, air, water, and other natural
resources.
(2) State wildlife, fish, and natural resource management
agencies are funded primarily through permit and license fees
paid to the States by the general public to hunt and fish, and
through Federal excise taxes on equipment used for these
activities.
(3) Funds generated from consumptive and recreational uses
of wildlife, fish, and other natural resources currently are
inadequate to address the natural resources related to energy
and minerals development on Federal onshore and offshore lands.
(4) Funds available to Federal agencies responsible for
managing Federal onshore and offshore lands and Federal-trust
wildlife and fish species and their habitats are inadequate to
address the natural resources related to energy and minerals
development on Federal onshore and offshore lands.
(5) Receipts derived from sales, bonus bids, and royalties
under the mineral leasing laws of the United States are paid to
the Treasury through the Minerals Management Service of the
Department of the Interior.
(6) None of the receipts derived from sales, bonus bids,
and royalties under the minerals leasing laws of the United
States are paid to the Federal or State agencies to examine,
monitor, and manage wildlife, fish, air, water, and other
natural resources related to natural gas, oil, and mineral
exploration and development.
(c) Purposes.--It is the purpose of this section to--
(1) authorize expenditures for the monitoring and
management of wildlife and fish, and their habitats, and air,
water, and other natural resources related to energy and
minerals development on Federal onshore and offshore lands;
(2) authorize expenditures for each fiscal year to the
Secretary of the Interior and the States; and
(3) use the appropriated funds to secure the necessary
trained workforce or contractual services to conduct
environmental studies, planning, development, monitoring, and
post-development management of wildlife and fish and their
habitats and air, water, and other natural resources that may
be related to bio-based fuel, gas, mineral, oil, wind, or other
energy exploration, development, transportation, transmission,
and associated activities on Federal onshore and offshore
lands, including, but not limited to--
(A) pertinent research, surveys, and environmental
analyses conducted to identify any impacts on wildlife,
fish, air, water, and other natural resources from
energy and mineral exploration, development,
production, and transportation or transmission;
(B) projects to maintain, improve, or enhance
wildlife and fish populations and their habitats or
air, water, or other natural resources, including
activities under the Endangered Species Act of 1973;
(C) research, surveys, environmental analyses, and
projects that assist in managing, including mitigating
either onsite or offsite, or both, the impacts of
energy and mineral activities on wildlife, fish, air,
water, and other natural resources; and
(D) projects to teach young people to live off the
land.
(d) Definitions.--In this section:
(1) Enhancement program.--The term ``Enhancement Program''
means the Federal Energy Natural Resources Enhancement Program
established by this section.
(2) State.--The term ``State'' means the Governor of the
State.
(e) Authorization of Appropriations.--There is authorized to be
appropriated to carry out the Enhancement Program $150,000,000 for each
of fiscal years 2009 through 2019.
(f) Establishment of Federal Energy Natural Resources Enhancement
Program.--
(1) In general.--There is established the Federal Energy
Natural Resources Enhancement Program.
(2) Payment to secretary of the interior.--Beginning with
fiscal year 2009, and in each fiscal year thereafter, one-third
of amounts appropriated for the Enhancement Program shall be
available to the Secretary of the Interior for use for the
purposes described in subsection (c)(3).
(3) Payment to states.--
(A) In general.--Beginning with fiscal year 2009,
and in each fiscal year thereafter, two-thirds of
amounts appropriated for the Enhancement Program shall
be available to the States for use for the purposes
described in (c)(3).
(B) Use of payments by state.--Each State shall use
the payments made under this paragraph only for
carrying out projects and programs for the purposes
described in (c)(3).
(C) Encourage use of private funds by state.--Each
State shall use the payments made under this paragraph
to leverage private funds for carrying out projects for
the purposes described in (c)(3).
(g) Limitation on Use.--Amounts made available under this section
may not be used for the purchase of any interest in land.
(h) Reports to Congress.--
(1) In general.--Beginning in fiscal year 2010 and
continuing for each fiscal year thereafter, the Secretary of
the Interior and each State receiving funds from the
Enhancement Fund shall submit a report to the Committee on
Energy and Natural Resources of the Senate and the Committee on
Resources of the House of Representatives.
(2) Required information.--Reports submitted to the
Congress by the Secretary of the Interior and States under this
subsection shall include the following information regarding
expenditures during the previous fiscal year:
(A) A summary of pertinent scientific research and
surveys conducted to identify impacts on wildlife,
fish, and other natural resources from energy and
mineral developments.
(B) A summary of projects planned and completed to
maintain, improve or enhance wildlife and fish
populations and their habitats or other natural
resources.
(C) A list of additional actions that assist, or
would assist, in managing, including mitigating either
onsite or offsite, or both, the impacts of energy and
mineral development on wildlife, fish, and other
natural resources.
(D) A summary of private (non-Federal) funds used
to plan, conduct, and complete the plans and programs
identified in subparagraphs (A) and (B).
SEC. 153. TERMINATION OF EFFECT OF LAWS PROHIBITING THE SPENDING OF
APPROPRIATED FUNDS FOR CERTAIN PURPOSES.
All provisions of existing Federal law prohibiting the spending of
appropriated funds to conduct oil and natural gas leasing and
preleasing activities, or to issue a lease to any person, for any area
of the outer Continental Shelf shall have no force or effect.
SEC. 154. OUTER CONTINENTAL SHELF INCOMPATIBLE USE.
(a) In General.--No Federal agency may permit construction or
operation (or both) of any facility, or designate or maintain a
restricted transportation corridor or operating area on the Federal
outer Continental Shelf or in State waters, that will be incompatible
with, as determined by the Secretary of the Interior, oil and gas or
natural gas leasing and substantially full exploration and production
of tracts that are geologically prospective for oil or natural gas (or
both).
(b) Exceptions.--Subsection (a) shall not apply to any facility,
transportation corridor, or operating area the construction, operation,
designation, or maintenance of which is or will be--
(1) located in an area of the outer Continental Shelf that
is unavailable for oil and gas or natural gas leasing by
operation of law;
(2) used for a military readiness activity (as defined in
section 315(f) of Public Law 107-314; 16 U.S.C. 703 note); or
(3) required in the national interest, as determined by the
President.
SEC. 155. REPURCHASE OF CERTAIN LEASES.
(a) Authority To Repurchase and Cancel Certain Leases.--The
Secretary of the Interior shall repurchase and cancel any Federal oil
and gas, geothermal, coal, oil shale, tar sands, or other mineral
lease, whether onshore or offshore, but not including any outer
Continental Shelf oil and gas leases that are subject to litigation in
the Court of Federal Claims on January 1, 2006, if the Secretary finds
that such lease qualifies for repurchase and cancellation under the
regulations authorized by this section.
(b) Regulations.--Not later than 365 days after the date of the
enactment of this Act, the Secretary shall publish a final regulation
stating the conditions under which a lease referred to in subsection
(a) would qualify for repurchase and cancellation, and the process to
be followed regarding repurchase and cancellation. Such regulation
shall include, but not be limited to, the following:
(1) The Secretary shall repurchase and cancel a lease after
written request by the lessee upon a finding by the Secretary
that--
(A) a request by the lessee for a required permit
or other approval complied with applicable law, except
the Coastal Zone Management Act of 1972 (16 U.S.C. 1451
et seq.), and terms of the lease and such permit or
other approval was denied;
(B) a Federal agency failed to act on a request by
the lessee for a required permit, other approval, or
administrative appeal within a regulatory or statutory
time-frame associated with the requested action,
whether advisory or mandatory, or if none, within 180
days; or
(C) a Federal agency attached a condition of
approval, without agreement by the lessee, to a
required permit or other approval if such condition of
approval was not mandated by Federal statute or
regulation in effect on the date of lease issuance, or
was not specifically allowed under the terms of the
lease.
(2) A lessee shall not be required to exhaust
administrative remedies regarding a permit request,
administrative appeal, or other required request for approval
for the purposes of this section.
(3) The Secretary shall make a final agency decision on a
request by a lessee under this section within 180 days of
request.
(4) Compensation to a lessee to repurchase and cancel a
lease under this section shall be the amount that a lessee
would receive in a restitution case for a material breach of
contract.
(5) Compensation shall be in the form of a check or
electronic transfer from the Department of the Treasury from
funds deposited into miscellaneous receipts under the authority
of the same Act that authorized the issuance of the lease being
repurchased.
(6) Failure of the Secretary to make a final agency
decision on a request by a lessee under this section within 180
days of request shall result in a 10 percent increase in the
compensation due to the lessee if the lease is ultimately
repurchased.
(c) No Prejudice.--This section shall not be interpreted to
prejudice any other rights that the lessee would have in the absence of
this section.
SEC. 156. OFFSITE ENVIRONMENTAL MITIGATION.
Notwithstanding any other provision of law, any person conducting
activities under the Mineral Leasing Act (30 U.S.C. 181 et seq.), the
Geothermal Steam Act (30 U.S.C. 1001 et seq.), the Mineral Leasing Act
for Acquired Lands (30 U.S.C. 351 et seq.), the Weeks Act (16 U.S.C.
552 et seq.), the General Mining Act of 1872 (30 U.S.C. 22 et seq.),
the Materials Act of 1947 (30 U.S.C. 601 et seq.), or the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), may in satisfying
any mitigation requirements associated with such activities propose
mitigation measures on a site away from the area impacted and the
Secretary of the Interior shall accept these proposed measures if the
Secretary finds that they generally achieve the purposes for which
mitigation measures appertained.
SEC. 157. MINERALS MANAGEMENT SERVICE.
The bureau known as the ``Minerals Management Service'' in the
Department of the Interior shall be known as the ``National Ocean
Resources and Royalty Service''.
SEC. 158. AUTHORITY TO USE DECOMMISSIONED OFFSHORE OIL AND GAS
PLATFORMS AND OTHER FACILITIES FOR ARTIFICIAL REEF,
SCIENTIFIC RESEARCH, OR OTHER USES.
(a) Short Title.--This section may be cited as the ``Rigs to Reefs
Act of 2008''.
(b) In General.--The Outer Continental Shelf Lands Act (43 U.S.C.
1301 et seq.) is amended by inserting after section 9 the following:
``SEC. 10. USE OF DECOMMISSIONED OFFSHORE OIL AND GAS PLATFORMS AND
OTHER FACILITIES FOR ARTIFICIAL REEF, SCIENTIFIC
RESEARCH, OR OTHER USES.
``(a) In General.--The Secretary shall issue regulations under
which the Secretary may authorize use of an offshore oil and gas
platform or other facility that is decommissioned from service for oil
and gas purposes for an artificial reef, scientific research, or any
other use authorized under section 8(p) or any other applicable Federal
law.
``(b) Transfer Requirements.--The Secretary shall not allow the
transfer of a decommissioned offshore oil and gas platform or other
facility to another person unless the Secretary is satisfied that the
transferee is sufficiently bonded, endowed, or otherwise financially
able to fulfill its obligations, including but not limited to--
``(1) ongoing maintenance of the platform or other
facility;
``(2) any liability obligations that might arise;
``(3) removal of the platform or other facility if
determined necessary by the Secretary; and
``(4) any other requirements and obligations that the
Secretary may deem appropriate by regulation.
``(c) Plugging and Abandonment.--The Secretary shall ensure that
plugging and abandonment of wells is accomplished at an appropriate
time.
``(d) Potential To Petition To Opt-Out of Regulations.--An Adjacent
State acting through a resolution of its legislature, with concurrence
of its Governor, may preliminarily petition to opt-out of the
application of regulations promulgated under this section to platforms
and other facilities located in the area of its Adjacent Zone within 12
miles of the coastline. Upon receipt of the preliminary petition, the
Secretary shall complete an environmental assessment that documents the
anticipated environmental effects of approving the petition. The
Secretary shall provide the environmental assessment to the State,
which then has the choice of no action or confirming its petition by
further action of its legislature, with the concurrence of its
Governor. The Secretary is authorized to except such area from the
application of such regulations, and shall approve any confirmed
petition.
``(e) Limitation on Liability.--A person that had used an offshore
oil and gas platform or other facility for oil and gas purposes and
that no longer has any ownership or control of the platform or other
facility shall not be liable under Federal law for any costs or damages
arising from such platform or other facility after the date the
platform or other facility is used for any purpose under subsection
(a), unless such costs or damages arise from--
``(1) use of the platform or other facility by the person
for development or production of oil or gas; or
``(2) another act or omission of the person.
``(f) Other Leasing and Use Not Affected.--This section, and the
use of any offshore oil and gas platform or other facility for any
purpose under subsection (a), shall not affect--
``(1) the authority of the Secretary to lease any area
under this Act; or
``(2) any activity otherwise authorized under this Act.''.
(c) Deadline for Regulations.--The Secretary of the Interior shall
issue regulations under subsection (b) by not later than 180 days after
the date of the enactment of this Act.
(d) Study and Report on Effects of Removal of Platforms.--Not later
than one year after the date of enactment of this Act, the Secretary of
the Interior, in consultation with other Federal agencies as the
Secretary deems advisable, shall study and report to the Congress
regarding how the removal of offshore oil and gas platforms and other
facilities from the outer Continental Shelf would affect existing fish
stocks and coral populations.
SEC. 159. REPEAL OF REQUIREMENT TO CONDUCT COMPREHENSIVE INVENTORY OF
OCS OIL AND NATURAL GAS RESOURCES.
The Energy Policy Act of 2005 (Public Law 109-58) is amended--
(1) by repealing section 357 (119 Stat. 720; 42 U.S.C.
15912); and
(2) in the table of contents in section 1(b), by striking
the item relating to such section 357.
SEC. 160. MINING AND PETROLEUM SCHOOLS.
(a) Maintenance and Restoration of Existing and Historic Petroleum
and Mining Engineering Programs.--Public Law 98-409 (30 U.S.C. 1221 et
seq.) is amended to read as follows:
``SECTION 1. SHORT TITLE.
``This Act may be cited as the `Energy and Mineral Schools
Reinvestment Act'.
``SEC. 2. POLICY.
``It is the policy of the United States to maintain the human
capital needed to preserve and foster the economic, energy, and mineral
resources security of the United States. The petroleum and mining
engineering programs and the applied geology and geophysics programs at
State chartered schools, universities, and institutions that produce
human capital are national assets and should be assisted with Federal
funds to ensure their continued health and existence.
``SEC. 3. MAINTAINING AND RESTORING HISTORIC AND EXISTING PETROLEUM AND
MINING ENGINEERING EDUCATION PROGRAMS.
``(a) The Secretary of the Interior (in this Act referred to as the
`Secretary') shall provide funds to historic and existing State-
chartered recognized petroleum or mining schools to assist such
schools, universities, and institutions in maintaining programs in
petroleum, mining, and mineral engineering education and research. All
funds shall be directed only to these programs and shall be subject to
the conditions of this section. Such funds shall not be less than 25
percent of the annual outlay of funds authorized by section 162(d) of
the Deep Ocean Energy Resources Act of 2008.
``(b) In this Act the term `historic and existing State-chartered
recognized petroleum or mining school' means a school, university, or
educational institution with the presence of an engineering program
meeting the specific program criteria, established by the member
societies of ABET, Inc., for petroleum, mining, or mineral engineering
and that is accredited on the date of enactment of the Deep Ocean
Energy Resources Act of 2008 by ABET, Inc.
``(c) It shall be the duty of each school, university, or
institution receiving funds under this section to provide for and
enhance the training of undergraduate and graduate petroleum, mining,
and mineral engineers through research, investigations, demonstrations,
and experiments. All such work shall be carried out in a manner that
will enhance undergraduate education.
``(d) Each school, university, or institution receiving funds under
this Act shall maintain the program for which the funds are provided
for 10 years after the date of the first receipt of such funds and take
steps described in its application for funding to increase the number
of undergraduate students enrolled in and completing the programs of
study in petroleum, mining, and mineral engineering.
``(e) The research, investigation, demonstration, experiment, and
training authorized by this section may include development and
production of conventional and non-conventional fuel resources, the
production of metallic and non-metallic mineral resources including
industrial mineral resources, and the production of stone, sand, and
gravel. In all cases the work carried out with funds made available
under this Act shall include a significant opportunity for
participation by undergraduate students.
``(f) Research funded by this Act related to energy and mineral
resource development and production may include--
``(1) studies of petroleum, mining, and mineral extraction
and immediately related beneficiation technology;
``(2) mineral economics, reclamation technology, and
practices for active operations;
``(3) the development of re-mining systems and technologies
to facilitate reclamation that fosters the ultimate recovery of
resources at abandoned petroleum, mining, and aggregate
production sites; and
``(4) research on ways to extract petroleum and mineral
resources that reduce the environmental impact of those
activities.
``(g) Grants for basic science and engineering studies and research
shall not require additional participation by funding partners. Grants
for studies to demonstrate the proof of concept for science and
engineering or the demonstration of feasibility and implementation
shall include participation by industry and may include funding from
other Federal agencies.
``(h)(1) No funds made available under this section shall be
applied to the acquisition by purchase or lease of any land or
interests therein, or the rental, purchase, construction, preservation,
or repair of any building.
``(2) Funding made available under this section may be used with
the express approval of the Secretary for proposals that will provide
for maintaining or upgrading of existing laboratories and laboratory
equipment. Funding for such maintenance shall not be used for
university overhead expenses.
``(3) Funding made available under this Act may be used for
maintaining and upgrading mines and oil and gas drilling rigs owned by
a school, university, or institution described in this section that are
used for undergraduate and graduate training and worker safety
training. All requests for funding such mines and oil and gas drilling
rigs must demonstrate that they have been owned by the school,
university, or institution for 5 years prior to the date of enactment
of the Deep Ocean Energy Resources Act of 2008 and have been actively
used for instructional or training purposes during that time.
``(4) Any funding made available under this section for research,
investigation, demonstration, experiment, or training shall not be used
for university overhead charges in excess of 10 percent of the amount
authorized by the Secretary.
``SEC. 4. FORMER AND NEW PETROLEUM AND MINING ENGINEERING PROGRAMS.
``(a) A school, university, or educational institution that
formerly met the requirements of section 3(b) immediately before the
date of the enactment of the Deep Ocean Energy Resources Act of 2008,
or that seeks to establish a new program described in section 3(b),
shall be eligible for funding under this Act only if it--
``(1) establishes a petroleum, mining, or mineral
engineering program that meets the specific program criteria
and is accredited as such by ABET, Inc., with particular
consideration awarded to establishing programs and minority
serving institutions;
``(2) agrees to the conditions of subsections (c) through
(h) of section 3 and the Secretary determines that the program
will strengthen and increase the number of nationally
available, well-qualified faculty members in petroleum, mining,
and mineral engineering; and
``(3) agrees to maintain the accredited program for 10
years after the date of the first receipt of funds under this
Act.
``(b) The Secretary shall seek the advice of the Committee
established pursuant to section 11 in determining the criteria used to
carry out this section.
``SEC. 5. FUNDING OF CONSORTIA OF HISTORIC AND EXISTING SCHOOLS.
``Where appropriate, the Secretary may make funds available to
consortia of schools, universities, or institutions described in
sections 3, 4, and 6, including those consortia that include schools,
universities, or institutions that are ineligible for funds under this
Act if those schools, universities, or institutions, respectively, have
skills, programs, or facilities specifically identified as needed by
the consortia to meet the necessary expenses for purposes of--
``(1) specific energy and mineral research projects of
broad application that could not otherwise be undertaken,
including the expenses of planning and coordinating regional
petroleum, geothermal, mining, and mineral engineering or
beneficiation projects by two or more schools; and
``(2) research into any aspects of petroleum, geothermal,
mining, or mineral engineering or beneficiation problems,
including but not limited to exploration, that are related to
the mission of the Department of the Interior.
``SEC. 6. SUPPORT FOR SCHOOLS WITH ENERGY AND MINERAL RESOURCE PROGRAMS
IN PETROLEUM AND MINERAL EXPLORATION GEOLOGY, PETROLEUM
GEOPHYSICS, OR MINING GEOPHYSICS.
``(a) Twelve percent of the annual outlay of funds authorized by
section 162(d) of the Deep Ocean Energy Resources Act of 2008 may be
granted to schools, universities, and institutions other than those
described in sections 3 and 4, with particular consideration awarded to
minority serving institutions.
``(b) The Secretary shall determine the eligibility of a college or
university to receive funding under this Act using criteria that
include--
``(1) the presence of a substantial program of
undergraduate and graduate geoscience instruction and research
in one or more of the following specialties: petroleum geology,
geothermal geology, mineral exploration geology, economic
geology, industrial minerals geology, mining geology, petroleum
geophysics, mining geophysics, geological engineering, or
geophysical engineering that has a demonstrated history of
achievement;
``(2) evidence of institutional commitment for the purposes
of this Act that includes a significant opportunity for
participation by undergraduate students in research;
``(3) evidence that such school, university, or institution
has or can obtain significant industrial cooperation in
activities within the scope of this Act;
``(4) agreement by the school, university, or institution
to maintain the programs for which the funding is sought for
the 10-year period beginning on the date the school,
university, or institution first receives such funds; and
``(5) requiring that such funding shall be for the purposes
set forth in subsections (c) through (h) of section 3 and
subject to the conditions set forth in section 3(h).
``(c) The Secretary shall seek the advice of the Committee
established pursuant to section 11 in determining the criteria used to
carry out this section.
``SEC. 7. DESIGNATION OF FUNDS FOR SCHOLARSHIPS AND FELLOWSHIPS.
``(a) The Secretary shall utilize 10 percent of the annual outlay
of funds authorized by section 162(d) of the Deep Ocean Energy
Resources Act of 2008 for the purpose of providing merit-based
scholarships for undergraduate education, graduate fellowships, and
postdoctoral fellowships.
``(b) In order to receive a scholarship or a graduate fellowship,
an individual student must be a lawful permanent resident of the United
States or a United States citizen and must agree in writing to complete
a course of studies and receive a degree in petroleum, mining, or
mineral engineering, petroleum geology, geothermal geology, mining and
economic geology, petroleum and mining geophysics, or mineral
economics.
``(c) The regulations required by section 9 shall require that an
individual, in order to retain a scholarship or graduate fellowship,
must continue in one of the course of studies listed in subsection (b)
of this section, must remain in good academic standing, as determined
by the school, institution, or university and must allow for
reinstatement of the scholarship or graduate fellowship by the
Secretary, upon the recommendation of the school or institution. Such
regulations may also provide for recovery of funds from an individual
who fails to complete any of the courses of study listed in subsection
(b) of this section after notice that such completion is a requirement
of receipt funding under this Act.
``(d) To carry out this section, the Secretary shall award grants
to schools, universities, and institutions that are eligible to receive
funding under section 3, 4 or 6. A school, university, or institution
receiving funding under this subsection shall be responsible for
enforcing the requirements of this section for scholarship or
fellowship students and shall return to the Secretary any funds
recovered from an individual under subsection (c). An institution
seeking funds under this subsection shall describe, in its application
to the Secretary for funding, the number of students that would be
awarded scholarships or fellowships if the application is approved, how
such students would be selected, and how the provisions of this section
will be enforced.
``SEC. 8. FUNDING CRITERIA FOR INSTITUTIONS.
``(a) Each application to the Secretary for funds under this Act
shall state, among other things, the nature of the project to be
undertaken; the period during which it will be pursued; the
qualifications of the personnel who will direct and conduct it; the
estimated costs; the importance of the project to the Nation, region,
or States concerned; its relation to other known research projects
theretofore pursued or being pursued; the extent to which the proposed
project will maximize the opportunity for the training of undergraduate
petroleum, mining, and mineral engineers; geologists and geophysicists;
and the extent of participation by nongovernmental sources in the
project.
``(b) No funds shall be made available under this Act except for an
application approved by the Secretary. All funds shall be made
available upon the basis of merit of the application, the need for the
knowledge that it is expected to produce when completed, and the
opportunity it provides for the undergraduate training of individuals
as petroleum, mining, and mineral engineers, geologists, and
geophysicists. The Secretary may use competitive review by
nongovernmental experts in relevant fields to determine which
applications to approve, to the extent practicable.
``(c) Funds available under this Act shall be paid at such times
and in such amounts during each fiscal year as determined by the
Secretary, and upon vouchers approved by the Secretary. Each school,
university, or institution that receives funds under this Act shall--
``(1) establish its plan to provide for the training of
individuals as petroleum, mining, and mineral engineers,
geologists, and geophysicists under a curriculum appropriate to
the field of mineral resources and mineral engineering and
related fields;
``(2) establish policies and procedures that assure that
Federal funds made available under this Act for any fiscal year
will supplement and, to the extent practicable, increase the
level of funds that would, in the absence of such Federal
funds, be made available for purposes of this Act, and in no
case supplant such funds; and
``(3) have an officer appointed by its governing authority
who shall receive and account for all funds paid under this Act
and shall make an annual report to the Secretary on or before
the first day of September of each year, on work accomplished
and the status of projects underway, together with a detailed
statement of the amounts received under this Act during the
preceding fiscal year, and of its disbursements on schedules
prescribed by the Secretary.
``(d) If any of the funds received by the authorized receiving
officer of a program under this Act are found by the Secretary to have
been improperly diminished, lost, or misapplied, such funds shall be
recovered by the Secretary.
``(e) Schools, universities, and institutions receiving funds under
this Act are authorized and encouraged to plan and conduct programs
under this Act in cooperation with each other and with such other
agencies, business enterprises and individuals.
``SEC. 9. DUTIES OF SECRETARY.
``(a) The Secretary, acting through the Assistant Secretary for
Land and Minerals Management, shall administer this Act and shall
prescribe such rules and regulations as may be necessary to carry out
its provisions not later than 1 year after the enactment of the Deep
Ocean Energy Resources Act of 2008.
``(b)(1) There is established in the Department of the Interior,
under the supervision of the Assistant Secretary for Land and Minerals
Management, an office to be known as the Office of Petroleum and Mining
Schools (hereafter in this Act referred to as the `Office') to
administer the provisions of this Act. There shall be a Director of the
Office who shall be a member of the Senior Executive Service. The
position of the Director shall be allocated from among the existing
Senior Executive Service positions at the Department of the Interior
and shall be a career reserved position as defined in section
3132(a)(8) of title 5, United States Code.
``(2) The Director is authorized to appoint a Deputy Director and
to employ such officers and employees as may be necessary to enable the
Office to carry out its functions. Such appointments shall be made from
existing positions at the Department of the Interior, and shall be
subject to the provisions of title 5, United States Code, governing
appointments in the competitive service. Such positions shall be paid
in accordance with the provisions of chapter 51 and subchapter III of
chapter 53 of such title relating to classification and General
Schedule pay rates.
``(3) In carrying out his or her functions, the Director shall
assist and advise the Secretary and the Committee pursuant to section
11 of this Act by--
``(A) providing professional and administrative staff
support for the Committee including recordkeeping and
maintaining minutes of all Committee and subcommittee meetings;
``(B) coordinating the activities of the Committee with
Federal agencies and departments, and the schools,
universities, and institutions to which funds are provided
under this Act;
``(C) maintaining accurate records of funds disbursed for
all scholarship and fellowship grants, research grants, and
grants for career technical education purposes;
``(D) preparing any regulations required to implement this
Act;
``(E) conducting site visits at schools, universities, and
institutions receiving funding under this Act; and
``(F) serving as a central repository for reports and
clearing house for public information on research funded by
this Act.
``(4) The Director or an employee of the Office shall be present at
each meeting of the Committee pursuant to section 11 or a subcommittee
of such Committee.
``(5) The Director is authorized to contract with public or private
agencies, institutions, and organizations and with individuals without
regard to section 3324(a) and (b) of title 31, United States Code, and
section 5 of title 41, United States Code, in carrying out his or her
functions.
``(6) As needed the Director shall ascertain whether the
requirements of this Act have been met by schools, universities,
institutions, and individuals.
``(c) The Secretary, acting through the Office of Petroleum and
Mining Schools, shall furnish such advice and assistance as will best
promote the purposes of this Act, shall participate in coordinating
research, investigations, demonstrations, and experiments initiated
under this Act, shall indicate to schools, universities, and
institutions receiving funds under this Act such lines of inquiry that
seem most important, and shall encourage and assist in the
establishment and maintenance of cooperation between such schools,
universities, and institutions, other research organizations, the
Department of the Interior, and other Federal agencies.
``(d) The Secretary shall establish procedures--
``(1) to ensure that each employee and contractor of the
Office established by this section and each member of the
Committee pursuant to section 11 of this Act shall disclose to
the Secretary any financial interests in or financial
relationships with schools, universities, institutions or
individuals receiving funds, scholarships or fellowships under
this Act;
``(2) to require any employee, contractor, or member of the
Committee with a financial relationship disclosed under
paragraph (1) to recuse themselves from--
``(A) any recommendation or decision regarding the
awarding of funds, scholarships or fellowships; or
``(B) any review, report, analysis or investigation
regarding compliance with the provisions of this Act by
a school, university, institution or any individual.
``(e) On or before the first day of July of each year beginning
after the date of enactment of this sentence, schools, universities,
and institutions receiving funds under this Act shall certify
compliance with this Act and upon request of the Director of the office
established by this section provide documentation of such compliance.
``(f) An individual granted a scholarship or fellowship with funds
provided under this Act shall through their respective school,
university, or institution, advise the Director of the office
established by this Act of progress towards completion of the course of
studies and upon the awarding of the degree within 30 days after the
award.
``(g) The regulations required by this section shall include a
preference for veterans and service members who have received or will
receive either the Afghanistan Campaign Medal or the Iraq Campaign
Medal as authorized by Public Law 108-234, and Executive Order No.
13363.
``SEC. 10. COORDINATION.
``(a) Nothing in this Act shall be construed to impair or modify
the legal relationship existing between any of the schools,
universities, and institutions under whose direction a program is
established with funds provided under this Act and the government of
the State in which it is located. Nothing in this Act shall in any way
be construed to authorize Federal control or direction of education at
any school, university, or institution.
``(b) The programs authorized by this Act are intended to enhance
the Nation's petroleum, mining, and mineral engineering education
programs and to enhance educational programs in petroleum and mining
exploration and to increase the number of individuals enrolled in and
completing these programs. To achieve this intent, the Secretary and
the Committee pursuant to section 11 shall receive the continuing
advice and cooperation of all agencies of the Federal Government
concerned with the identification, exploration, and development of
energy and mineral resources.
``(c) Nothing in this Act is intended to give or shall be construed
as giving the Secretary any authority over mining and mineral resources
research conducted by any agency of the Federal Government, or as
repealing or diminishing existing authorities or responsibilities of
any agency of the Federal Government to plan and conduct, contract for,
or assist in research in its area of responsibility and concern with
regard to mining and mineral resources.
``(d) The schools, universities, and institutions receiving funding
under this Act shall make detailed reports to the Office of Petroleum
and Mining Schools on projects completed, in progress, or planned with
funds provided under this Act. All such reports shall be available to
the public on not less than an annual basis through the Office of
Petroleum and Mining Schools. All uses, products, processes, and other
developments resulting from any research, demonstration, or experiment
funded in whole or in part under this Act shall be made available
promptly to the general public, subject to exception or limitation, if
any, as the Secretary may find necessary in the interest of national
security, and subject to the applicable Federal law governing patents.
``SEC. 11. COMMITTEE ON PETROLEUM, MINING, AND MINERAL ENGINEERING AND
ENERGY AND MINERAL RESOURCE EDUCATION.
``(a) The Secretary shall appoint a Committee on Petroleum, Mining,
and Mineral Engineering and Energy and Mineral Resource Education
composed of--
``(1) the Assistant Secretary of the Interior responsible
for land and minerals management and not more than 16 other
persons who are knowledgeable in the fields of mining and
mineral resources research, including 2 university
administrators one of whom shall be from historic and existing
petroleum and mining schools; a community, technical, or tribal
college administrator; a career technical education educator; 6
representatives equally distributed from the petroleum, mining,
and aggregate industries; a working miner; a working oilfield
worker; a representative of the Interstate Oil and Gas Compact
Commission; a representative from the Interstate Mining Compact
Commission; a representative from the Western Governors
Association; a representative of the State geologists, and a
representative of a State mining and reclamation agency. In
making these 16 appointments, the Secretary shall consult with
interested groups.
``(2) The Assistant Secretary for Land and Minerals
Management, in the capacity of the Chairman of the Committee,
may have present during meetings of the Committee
representatives of Federal agencies with responsibility for
energy and minerals resources management, energy and mineral
resource investigations, energy and mineral commodity
information, international trade in energy and mineral
commodities, mining safety regulation and mine safety research,
and research into the development, production, and utilization
of energy and mineral commodities. These representatives shall
serve as technical advisors to the committee and shall have no
voting responsibilities.
``(b) The Committee shall consult with, and make recommendations
to, the Secretary on policy matters relating to carrying out this Act.
The Secretary shall consult with and carefully consider recommendations
of the Committee in such matters.
``(c) Committee members, other than officers or employees of
Federal, State, or local governments, shall be, for each day (including
traveltime) during which they are performing Committee business, paid
at a rate fixed by the Secretary but not in excess of the daily
equivalent of the maximum rate of pay for level IV of the Executive
Schedule under section 5136 of title 5, United States Code, and shall
be fully reimbursed for travel, subsistence, and related expenses.
``(d) The Committee shall be chaired by the Assistant Secretary of
the Interior responsible for land and minerals management. There shall
also be elected a Vice Chairman by the Committee from among the members
referred to in this section. The Vice Chairman shall perform such
duties as are determined to be appropriate by the committee, except
that the Chairman of the Committee must personally preside at all
meetings of the full Committee. The Committee may organize itself into
such subcommittees as the Committee may deem appropriate.
``(e) Following completion of the report required by section 385 of
the Energy Policy Act of 2005, the Committee shall consider the
recommendations of the report, ongoing efforts in the schools,
universities, and institutions receiving funding under this Act, the
Federal and State Governments, and the private sector, and shall
formulate and recommend to the Secretary a national plan for a program
utilizing the fiscal resources provided under this Act. The Committee
shall submit such plan to the Secretary for approval. Upon approval,
the plan shall guide the Secretary and the Committee in their actions
under this Act.
``(f) Section 10 of the Federal Advisory Committee Act (5 U.S.C.
App. 2) shall not apply to the Committee.
``SEC. 12. CAREER TECHNICAL EDUCATION.
``(a) Up to 25 percent of the annual outlay of funds authorized by
section 162(d) of the Deep Ocean Energy Resources Act of 2008 may be
granted to schools or institutions including, but not limited to,
colleges, universities, community colleges, tribal colleges and
universities, technical institutes, secondary schools, other than those
described in sections 3, 4, 5, and 6, and jointly sponsored
apprenticeship and training programs that are authorized by Federal
law.
``(b) The Secretary shall determine the eligibility of a school or
institution to receive funding under this section using criteria that
include--
``(1) the presence of a State-approved program in mining
engineering technology, petroleum engineering technology,
industrial engineering technology, or industrial technology
that--
``(A) is focused on technology and its use in
energy and mineral production and related maintenance,
operational safety, or energy infrastructure protection
and security;
``(B) prepares students for advanced or supervisory
roles in the mining industry or the petroleum industry;
and
``(C) grants either an associate's degree or a
baccalaureate degree in one of the subjects listed in
subparagraph (A);
``(2) the presence of a program, including a secondary
school vocational education program or career academy, that
provides training for individuals entering the petroleum, coal
mining, or mineral mining industries; or
``(3) the presence of a State-approved program of career
technical education at a secondary school, offered
cooperatively with a community college in one of the industrial
sectors of--
``(A) agriculture, forestry, or fisheries;
``(B) utilities;
``(C) construction;
``(D) manufacturing; and
``(E) transportation and warehousing.
``(c) Schools or institutions receiving funds under this section
must show evidence of an institutional commitment for the purposes of
career technical education and provide evidence that the school or
institution has received or will receive industry cooperation in the
form of equipment, employee time, or donations of funds to support the
activities that are within the scope of this section.
``(d) Schools or institutions receiving funds under this section
must agree to maintain the programs for which the funding is sought for
a period of 10 years beginning on the date the school or institution
receives such funds, unless the Secretary finds that a shorter period
of time is appropriate for the local labor market or is required by
State authorities.
``(e) Schools or institutions receiving funds under this section
may combine these funds with State funds, and other Federal funds where
allowed by law, to carry out programs described in this section,
however the use of the funds received under this section must be
reported to the Secretary not less than annually.
``(f) The Secretary shall seek the advice of the Committee
established pursuant to section 11 in determining the criteria used to
carry out this section.
``SEC. 13. DEPARTMENT OF THE INTERIOR WORKFORCE ENHANCEMENT.
``(a) Physical Science, Engineering and Technology Scholarship
Program.--
``(1) From the amount of funds available to carry out this
section, the Secretary shall use 30 percent of that amount to
provide financial assistance for education in physical
sciences, engineering, and engineering or industrial technology
and disciplines that, as determined by the Secretary, are
critical to the functions of the Department of the Interior and
are needed in the Department of the Interior workforce.
``(2) The Secretary of the Interior may award a scholarship
in accordance with this section to a person who--
``(A) is a citizen of the United States;
``(B) is pursuing an undergraduate or advanced
degree in a critical skill or discipline described in
paragraph (1) at an institution of higher education;
and
``(C) enters into a service agreement with the
Secretary of the Interior as described in subsection
(e).
``(3) The amount of the financial assistance provided under
a scholarship awarded to a person under this subsection shall
be the amount determined by the Secretary of the Interior as
being necessary to pay all educational expenses incurred by
that person, including tuition, fees, cost of books, laboratory
expenses, and expenses of room and board. The expenses paid,
however, shall be limited to those educational expenses
normally incurred by students at the institution of higher
education involved.
``(b) Scholarship Program for Students Attending Minority Serving
Higher Education Institutions.--
``(1) From the amount of funds available to carry out this
section, the Secretary shall use 35 percent of that amount to
award scholarships in accordance with this section to persons
who--
``(A) are enrolled in a Minority Serving Higher
Education Institution;
``(B) are citizens or nationals of the United
States;
``(C) are pursuing an undergraduate or advanced
degree in agriculture, engineering, engineering or
industrial technology, or physical sciences, or other
discipline that is found by the Secretary to be
critical to the functions of the Department of the
Interior and are needed in the Department of the
Interior workforce; and
``(D) enter into a service agreement with the
Secretary of the Interior as described in subsection
(e).
``(2) The amount of the financial assistance provided under
a scholarship awarded to a person under this subsection shall
be the amount determined by the Secretary of the Interior as
being necessary to pay all educational expenses incurred by
that person, including tuition, fees, cost of books, laboratory
expenses, and expenses of room and board. The expenses paid,
however, shall be limited to those educational expenses
normally incurred by students at the institution of higher
education involved.
``(c) Education Partnerships With Minority Serving Higher Education
Institutions.--
``(1) The Secretary shall require the director of each
Bureau and Office, to foster the participation of Minority
Serving Higher Education Institutions in any regulatory
activity, land management activity, science activity,
engineering or industrial technology activity, or engineering
activity carried out by the Department of the Interior.
``(2) From the amount of funds available to carry out this
section, the Secretary shall use 35 percent of that amount to
support activities at Minority Serving Higher Education
Institutions by--
``(A) funding faculty and students in these
institutions in collaborative research projects that
are directly related to the Departmental or Bureau
missions;
``(B) allowing equipment transfer to Minority
Serving Higher Education Institutions as a part of a
collaborative research program directly related to a
Departmental or Bureau mission;
``(C) allowing faculty and students at these
Minority Serving Higher Education Institutions to
participate Departmental and Bureau training
activities;
``(D) funding paid internships in Departmental and
Bureau facilities for students at Minority Serving
Higher Education Institutions; and
``(E) assigning Departmental and Bureau personnel
to positions located at Minority Serving Higher
Educational Institutions to serve as mentors to
students interested in a science, technology or
engineering disciplines related to the mission of the
Department or the Bureaus.
``(d) Service Agreement for Recipients of Assistance.--
``(1) To receive financial assistance under subsection (a)
or (b) of this section--
``(A) in the case of an employee of the Department
of the Interior, the employee shall enter into a
written agreement to continue in the employment of the
department for the period of obligated service
determined under paragraph (2); and
``(B) in the case of a person not an employee of
the Department of the Interior, the person shall enter
into a written agreement to accept and continue
employment in the Department of the Interior for the
period of obligated service determined under paragraph
(2).
``(2) For the purposes of this section, the period of
obligated service for a recipient of a scholarship under this
section shall be the period determined by the Secretary of the
Interior as being appropriate to obtain adequate service in
exchange for the financial assistance provided under the
scholarship. In no event may the period of service required of
a recipient be less than the total period of pursuit of a
degree that is covered by the scholarship. The period of
obligated service is in addition to any other period for which
the recipient is obligated to serve in the civil service of the
United States.
``(3) An agreement entered into under this subsection by a
person pursuing an academic degree shall include any terms and
conditions that the Secretary of the Interior determines
necessary to protect the interests of the United States or
otherwise appropriate for carrying out this section.
``(e) Refund for Period of Unserved Obligated Service.--
``(1) A person who voluntarily terminates service before
the end of the period of obligated service required under an
agreement entered into under subsection (d) shall refund to the
United States an amount determined by the Secretary of the
Interior as being appropriate to obtain adequate service in
exchange for financial assistance.
``(2) An obligation to reimburse the United States imposed
under paragraph (1) is for all purposes a debt owed to the
United States.
``(3) The Secretary of the Interior may waive, in whole or
in part, a refund required under paragraph (1) if the Secretary
determines that recovery would be against equity and good
conscience or would be contrary to the best interests of the
United States.
``(4) A discharge in bankruptcy under title 11, United
States Code, that is entered less than five years after the
termination of an agreement under this section does not
discharge the person signing such agreement from a debt arising
under such agreement or under this subsection.
``(f) Relationship to Other Programs.--The Secretary of the
Interior shall coordinate the provision of financial assistance under
the authority of this section with the provision of financial
assistance under the authorities provided in this Act in order to
maximize the benefits derived by the Department of Interior from the
exercise of all such authorities.
``(g) Report.--Not later than September 1 of each year, the
Secretary of the Interior shall submit to the Congress a report on the
status of the assistance program carried out under this section. The
report shall describe the programs within the Department designed to
recruit and retain a workforce on a short-term basis and on a long-term
basis.
``(h) Definitions.--As used in this section:
``(1) The term `Minority Serving Higher Education
Institutions' means a Hispanic-serving institution,
historically Black college or university, Alaska Native-serving
institution, tribal college or university, or insular area
school.
``(2) The term `Hispanic-serving institution' has the
meaning given the term in section 502(a) of the Higher
Education Act of 1965 (20 U.S.C. 1101a(a)).
``(3) The term `historically Black college or university'
has the meaning given the term `part B institution' in section
322 of the Higher Education Act of 1965 (20 U.S.C. 1061).
``(4) The term `tribal college or university' has the
meaning given the term `Tribal College or University' in
section 316(b)(3) of the Higher Education Act of 1965 (20
U.S.C. 1059c).
``(5) The term `institution of higher education' has the
meaning given such term in section 101 of the Higher Education
Act of 1965 (20 U.S.C. 1001).
``(6) The term `Alaska Native-serving institution' has the
meaning given the term in section 317 of the Higher Education
Act of 1965 (20 U.S.C. 1059d).
``(7) The term `insular area school' means an academic
institution or university in American Samoa, Guam, The Northern
Mariana Islands, Puerto Rico, and the Virgin Islands, or any
other territory or possession of the United States.
``(i) Funding.--To implement this section, the Secretary shall use
3 percent of the annual outlay authorized by section 162(d) of the Deep
Ocean Energy Resources Act of 2008.''.
(b) Funding for Energy Research.--
(1) Using 20 percent of the funds authorized by subsection
(d), the Secretary of Energy, through the energy supply
research and development programs of the Department of Energy,
and in consultation with the Office of Science of the
Department of Energy, shall carry out a program to award grants
to institutions of higher education on the basis of
competitive, merit-based review, for the purpose of conducting
research on advanced energy technologies with the potential to
transform the energy systems of the United States so as to--
(A) reduce dependence on foreign energy supplies;
(B) reduce or eliminate emissions of greenhouse
gases;
(C) reduce negative environmental effects
associated with energy production, storage, and use;
and
(D) enhance the competitiveness of United States
energy technology exports.
(2) Awards made under this subsection may include funding
for--
(A) energy efficiency;
(B) renewable energy, including solar, wind, and
biofuels; and
(C) nuclear, hydrogen, and any other energy
research that could accomplish the purpose set forth in
paragraph (1).
(3) The Secretary of Energy may require or authorize
grantees under this subsection to partner with industry, but
only to the extent that such a requirement does not prevent
long-range, potentially pathbreaking research from being funded
under this subsection.
(4) An institution of higher education seeking funding
under this subsection shall submit an application at such time,
in such manner, and containing such information as the
Secretary of Energy may require.
(5) In this subsection, the term ``institution of higher
education'' has the meaning given that term in section 101(a)
of the Higher Education Act of 1965.
(c) Funding for Energy Scholarships.--
(1) Using 5 percent of the funds authorized by subsection
(d), the Secretary of Energy, through the energy supply
research and development programs of the Department of Energy,
and in consultation with the Office of Science of the
Department of Energy, shall carry out a program to award grants
to institutions of higher education on the basis of
competitive, merit-based review, to grant graduate traineeships
to Ph.D. students who are citizens of the United States who
will carry out research on advanced energy technologies to
accomplish the purpose set forth in subsection (c)(1).
(2) Awards made under this subsection may include funding
for--
(A) energy efficiency;
(B) renewable energy, including solar, wind, and
biofuels; and
(C) nuclear, hydrogen, and any other energy
research that would accomplish the purpose set forth in
subsection (c)(1) that is not eligible for funding
under section 7 of the Energy and Mineral Schools
Reinvestment Act.
(3) An institution of higher education seeking funding
under this subsection shall submit an application at such time,
in such manner, and containing such information as the
Secretary of Energy may require.
(4) In this subsection, the term ``institution of higher
education'' has the meaning given that term in section 101(a)
of the Higher Education Act of 1965.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $150,000,000 for each of fiscal
years 2009 through 2019.
SEC. 161. ONSHORE AND OFFSHORE MINERAL LEASE FEES.
Except as otherwise provided in this subtitle, the Department of
the Interior is prohibited from charging fees applicable to actions on
Federal onshore and offshore oil and gas, coal, geothermal, and other
mineral leases, including transportation of any production from such
leases, if such fees were not established in final regulations prior to
the date of issuance of the lease.
SEC. 162. OCS REGIONAL HEADQUARTERS.
The headquarters for the Gulf of Mexico Region shall permanently be
located within the State of Louisiana within 25 miles of the center of
Jackson Square, New Orleans, Louisiana. Further, not later than July 1,
2010, the Secretary of the Interior shall establish the headquarters
for the Atlantic OCS Region and the headquarters for the Pacific OCS
Region within a State bordering the Atlantic OCS Region and a State
bordering the Pacific OCS Region, respectively, from among the States
bordering those Regions, that petitions by no later than January 1,
2010, for leasing, for oil and gas or natural gas, covering at least 40
percent of the area of its Adjacent Zone within 100 miles of the
coastline. Such Atlantic and Pacific OCS Regions headquarters shall be
located within 25 miles of the coastline and each MMS OCS regional
headquarters shall be the permanent duty station for all Minerals
Management Service personnel that on a daily basis spend on average 60
percent or more of their time in performance of duties in support of
the activities of the respective Region, except that the Minerals
Management Service may house regional inspection staff in other
locations. Each OCS Region shall each be led by a Regional Director who
shall be an employee within the Senior Executive Service.
SEC. 163. NATIONAL GEO FUND ACT OF 2008.
(a) Short Title.--This section may be cited as the ``National Geo
Fund Act of 2008''.
(b) Purposes.--The purpose of this section is to provide for the
management of geologic programs, geologic mapping, geophysical and
other seismic studies, seismic monitoring programs, and the
preservation and use of geologic and geophysical data, geothermal and
geopressure energy resource management, unconventional energy resources
management, and renewable energy management associated with ocean wave,
current, and thermal resources.
(c) State Defined.--In this section the term ``State'' means the
agency of a State designated by its Governor or State law to perform
the functions and activities described in subsection (b).
(d) Strategic Unconventional Resources.--
(1) Program.--The Secretary of the Interior shall establish
a program for production of fuels from strategic unconventional
resources, and production of oil and gas resources using
CO<INF>2</INF> enhanced recovery. The program shall focus
initially on activities and domestic resources most likely to
result in significant production in the near future, and shall
include work necessary to improve extraction techniques,
including surface and in situ operations. The program shall
include characterization and assessment of potential resources,
a sampling program, appropriate laboratory and other analyses
and testing, and assessment of methods for exploration and
development of these strategic unconventional resources.
(2) Pilot projects.--The program created in paragraph (1)
shall include, but not be limited to, pilot projects on (A) the
Maverick Basin heavy oil and tar sands formations of Texas,
including the San Miguel deposits, (B) the Greater Green River
Basin heavy oil, shale, tar sands, and coal deposits of
Colorado, Utah, and Wyoming, (C) the shale, tar sands, heavy
oil, and coal deposits in the Alabama-Mississippi-Tennessee
region, (D) the shale, tar sands, heavy oil, and coal deposits
in the Ohio River valley, and (E) strategic unconventional
resources in California. The Secretary shall identify and
report to Congress on feasible incentives to foster recovery of
unconventional fuels by private industry within the United
States. Such incentives may include, but are not limited to,
long-term contracts for the purchase of unconventional fuels
for defense purposes, Federal grants and loan guarantees for
necessary capital expenditures, and favorable terms for the
leasing of Government lands containing unconventional
resources.
(3) Definitions.--In this subsection:
(A) Strategic unconventional resources.--The term
``strategic unconventional resources'' means
hydrocarbon resources, including heavy oil, shale, tar
sands, and coal deposits, from which liquid fuels may
be produced.
(B) In situ extraction methods.--The term ``in situ
extraction methods'' means recovery techniques that are
applied to the resources while they are still in the
ground, and are in commercial use or advanced stages of
development. Such techniques include, but are not
limited to, steam flooding, steam-assisted gravity
drainage (including combination with electric power
generation where appropriate), cyclic steam
stimulation, air injection, and chemical treatment.
(4) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection for each of
fiscal years 2009 through 2016 not less than $35,000,000. Each
pilot project shall be allocated not less than $4,000,000 per
year in each of fiscal years 2009 through 2016.
(e) Support of Geothermal and Geopressure Oil and Gas Energy
Production.--
(1) In general.--The Secretary of the Interior shall carry
out a grant program in support of geothermal and geopressure
oil and gas energy production. The program shall include grants
for a total of not less than three assessments of the use of
innovative geothermal techniques such as organic rankine cycle
systems at marginal, unproductive, and productive oil and gas
wells, and not less than one assessment of the use of
innovative geopressure techniques. The Secretary shall, to the
extent practicable and in the public interest, make awards
that--
(A) include not less than five oil or gas well
sites per project award;
(B) use a range of oil or gas well hot water source
temperatures from 150 degrees Fahrenheit to 300 degrees
Fahrenheit;
(C) use existing or new oil or gas wells;
(D) cover a range of sizes from 175 kilowatts to
one megawatt;
(E) are located at a range of sites including
tribal lands, Federal lease, State, or privately owned
sites;
(F) can be replicated at a wide range of sites;
(G) facilitate identification of optimum techniques
among competing alternatives;
(H) include business commercialization plans that
have the potential for production of equipment at high
volumes and operation and support at a large number of
sites; and
(I) satisfy other criteria that the Secretary
determines are necessary to carry out the program.
The Secretary shall give preference to assessments that address
multiple elements contained in subparagraphs (A) through (I).
(2) Grant awards.--
(A) In general.--Each grant award for assessment of
innovative geothermal or geopressure technology such as
organic rankine cycle systems at oil and gas wells made
by the Secretary under this section shall include--
(i) necessary and appropriate site
engineering study;
(ii) detailed economic assessment of site
specific conditions;
(iii) appropriate feasibility studies to
determine ability for replication;
(iv) design or adaptation of existing
technology for site specific circumstances or
conditions;
(v) installation of equipment, service, and
support; and
(vi) monitoring for a minimum of one year
after commissioning date.
(3) Competitive grant selection.--Not less than 180 days
after the date of the enactment of this Act, the Secretary
shall conduct a national solicitation for applications for
grants under the program. Grant recipients shall be selected on
a competitive basis based on criteria in subsection (b).
(4) Federal share.--The Federal share of costs of grants
under this subsection shall be provided from funds made
available to carry out this section. The Federal share of the
cost of a project carried out with such a grant shall not
exceed 50 percent of such cost.
(5) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection for each of
fiscal years 2007 through 2011 not less than $5,000,000. No
funds authorized under this section may be used for the
purposes of drilling new wells.
(6) Amendment.--Section 4 of the Geothermal Steam Act of
1970 (30 U.S.C. 1003) is amended by adding at the end the
following:
``(h) Geothermal Resources Co-Produced With the Minerals.--Any
person who holds a lease or who operates a cooperative or unit plan
under the Mineral Leasing Act, in the absence of an existing lease for
geothermal resources under this Act, shall upon notice to the Secretary
have the right to utilize any geothermal resources co-produced with the
minerals for which the lease was issued during the operation of that
lease or cooperative or unit plan, for the generating of electricity to
operate the lease. Any electricity that is produced in excess of that
which is required to operate the lease and that is sold for purposes
outside of the boundary of the lease shall be subject to the
requirements of section 5.''.
(f) Liquid Fuels Grant Program.--
(1) Program.--The Secretary of the Interior shall establish
a grant program for facilities for coal-to-liquids, petroleum
coke-to-liquids, oil shale, tar sands, heavy oil, and Alaska
natural gas-to-liquids and to assess the production of low-rank
coal water fuel (in this subsection referred to as ``LRCWF'').
(2) LRCWF.--The LRCWF grant project location shall use
lignite coal and shall be allocated $15,000,000.
(3) Definitions.--In this subsection:
(A) Coal-to-liquids front-end engineering and
design.--The terms ``coal-to-liquids front-end
engineering and design'' and ``FEED'' mean those
expenditures necessary to engineer, design, and obtain
permits for a facility for a particular geographic
location which will utilize a process or technique to
produce liquid fuels from coal resources.
(B) Low-rank coal water fuel.--In this subsection
the term ``low-rank coal water fuel'' means a liquid
fuel produced from hydrothermal treatment of lignite
and sub-bituminous coals.
(4) Grant provisions.--All grants shall require a 50
percent non-Federal cost share. The first 4 FEED grant
recipients who receive full project construction financing
commitments, based on earliest calendar date, shall not be
required to repay any of their grants. The next 4 FEED grant
recipients who receive such commitments shall be required to
repay 25 percent of the grant. The next 4 FEED grant recipients
who receive such commitments shall be required to repay 50
percent of the grant, and the remaining FEED grant recipients
shall be required to repay 75 percent of the grant. Any
required repayment shall be paid as part of the closing process
for any construction financing relating to the grant. No
repayment shall require the payment of interest if repaid
within 5 years of the issuance of the grant. FEED grants shall
be limited to a maximum of $500,000 per 1,000 barrels per day
of liquid fuels production capacity.
(5) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection $50,000,000 for
each of fiscal years 2009 through 2016.
(g) Renewable Energy From Ocean Wave, Current, and Thermal
Resources.--
(1) Program.--The Secretary of the Interior shall establish
a grant program for the production of renewable energy from
ocean waves, tides, currents, and thermal resources.
(2) Grant provisions.--All grants under this subsection
shall require a 50 percent non-Federal cost share.
(3) Authorization of appropriations.--There is authorized
to be appropriated to carry out this subsection funds for each
of fiscal years 2009 through 2016 in the amount of not less
than $20,000,000 each year, and thereafter in such amounts as
the Secretary may find appropriate.
(h) Amendment to the Surface Mining Control and Reclamation Act of
1977.--Section 507 of the Surface Mining Control and Reclamation Act of
1977 (30 U.S.C. 1267) is amended by adding at the end the following:
``(i) Any person who provides the regulatory authority with a map
under subsection (b)(13) or (b)(14) shall not be liable to any other
person in any way for the accuracy or completeness of any such map
which was not prepared and certified by or on behalf of such person.''.
(i) Amendment to the Energy Policy Act of 2005.--Section 357 of the
Energy Policy Act of 2005 (42 U.S.C. 15912) is amended by redesignating
subsection (b) as subsection (c), and inserting the following new
subsection:
``(b) There is authorized to be appropriated for the Secretary to
contract for use of the 3-D seismic technology referenced in (a)(2) the
amount of $50,000,000 for each of fiscal years 2009 through 2016.''.
SEC. 164. LEASES FOR AREAS LOCATED WITHIN 100 MILES OF CALIFORNIA OR
FLORIDA.
(a) Authorization To Cancel and Exchange Certain Existing Oil and
Gas Leases; Prohibition on Submittal of Exploration Plans for Certain
Leases Prior to June 30, 2012.--
(1) Authority.--Within 2 years after the date of enactment
of this Act, the lessee of an existing oil and gas lease for an
area located completely within 100 miles of the coastline
within the California or Florida Adjacent Zones shall have the
option, without compensation, of exchanging such lease for a
new oil and gas lease having a primary term of 5 years. For the
area subject to the new lease, the lessee may select any
unleased tract on the outer Continental Shelf that is in an
area available for leasing. Further, with the permission of the
relevant Governor, such a lessee may convert its existing oil
and gas lease into a natural gas lease having a primary term of
5 years and covering the same area as the existing lease or
another area within the same State's Adjacent Zone within 100
miles of the coastline.
(2) Administrative process.--The Secretary of the Interior
shall establish a reasonable administrative process to
implement paragraph (1). Exchanges and conversions under
subsection (a), including the issuance of new leases, shall not
be considered to be major Federal actions for purposes of the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.). Further, such actions conducted in accordance with this
section are deemed to be in compliance all provisions of the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).
(3) Operating restrictions.--A new lease issued in exchange
for an existing lease under this section shall be subject to
such national defense operating stipulations on the OCS tract
covered by the new lease as may be applicable upon issuance.
(4) Priority.--The Secretary shall give priority in the
lease exchange process based on the amount of the original
bonus bid paid for the issuance of each lease to be exchanged.
The Secretary shall allow leases covering partial tracts to be
exchanged for leases covering full tracts conditioned upon
payment of additional bonus bids on a per-acre basis as
determined by the average per acre of the original bonus bid
per acre for the partial tract being exchanged.
(5) Exploration plans.--Any exploration plan submitted to
the Secretary of the Interior after the date of the enactment
of this Act and before July 1, 2012, for an oil and gas lease
for an area wholly within 100 miles of the coastline within the
California Adjacent Zone or Florida Adjacent Zone shall not be
treated as received by the Secretary until the earlier of July
1, 2012, or the date on which a petition by the Adjacent State
for oil and gas leasing covering the area within which is
located the area subject to the oil and gas lease was approved.
(b) Further Lease Cancellation and Exchange Provisions.--
(1) Cancellation of lease.--As part of the lease exchange
process under this section, the Secretary shall cancel a lease
that is exchanged under this section.
(2) Consent of lessees.--All lessees holding an interest in
a lease must consent to cancellation of their leasehold
interests in order for the lease to be cancelled and exchanged
under this section.
(3) Waiver of rights.--As a prerequisite to the exchange of
a lease under this section, the lessee must waive any rights to
bring any litigation against the United States related to the
transaction.
(4) Plugging and abandonment.--The plugging and abandonment
requirements for any wells located on any lease to be cancelled
and exchanged under this section must be complied with by the
lessees prior to the cancellation and exchange.
(c) Area Partially Within 100 Miles of Florida.--An existing oil
and gas lease for an area located partially within 100 miles of the
coastline within the Florida n Adjacent Zone may only be developed and
produced using wells drilled from well-head locations at least 100
miles from the coastline to any bottom-hole location on the area of the
lease. This subsection shall not apply if Florida has petitioned for
leasing closer to the coastline than 100 miles.
(d) Existing Oil and Gas Lease Defined.--In this section the term
``existing oil and gas lease'' means an oil and gas lease in effect on
the date of the enactment of this Act.
SEC. 165. COASTAL IMPACT ASSISTANCE.
Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C.
1356a) is repealed.
SEC. 166. OIL SHALE AND TAR SANDS AMENDMENTS.
(a) Repeal of Requirement To Establish Payments.--Section 369(o) of
the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 728; 42
U.S.C. 15927) is repealed.
(b) Treatment of Revenues.--Section 21 of the Mineral Leasing Act
(30 U.S.C. 241) is amended by adding at the end the following:
``(e) Revenues.--
``(1) In general.--Notwithstanding the provisions of
section 35, all revenues received from and under an oil shale
or tar sands lease shall be disposed of as provided in this
subsection.
``(2) Royalty rates for commercial leases.--
``(A) Royalty rates.--The Secretary shall model the
royalty schedule for oil shale and tar sands leases
based on the royalty program currently in effect for
the production of synthetic crude oil from oil sands in
the Province of Alberta, Canada.
``(B) Reduction.--The Secretary shall reduce any
royalty otherwise required to be paid under
subparagraph (A) under any oil shale or tar sands lease
on a sliding scale based upon market price, with a 10
percent reduction if the average futures price of NYMEX
Light Sweet Crude, or a similar index, drops, for the
previous quarter year, below $50 (in January 1, 2006,
dollars), and an 80 percent reduction if the average
price drops below $30 (in January 1, 2006, dollars) for
the quarter previous to the one in which the production
is sold.
``(3) Disposition of revenues.--
``(A) Deposit.--The Secretary shall deposit into a
separate account in the Treasury all revenues derived
from any oil shale or tar sands lease.
``(B) Allocations to states and local political
subdivisions.--The Secretary shall allocate 50 percent
of the revenues deposited into the account established
under subparagraph (A) to the State within the
boundaries of which the leased lands are located, with
a portion of that to be paid directly by the Secretary
to the State's local political subdivisions as provided
in this paragraph.
``(C) Transmission of allocations.--
``(i) In general.--Not later than the last
business day of the month after the month in
which the revenues were received, the Secretary
shall transmit--
``(I) to each State two-thirds of
such State's allocations under
subparagraph (B), and in accordance
with clauses (ii) and (iii) to certain
county-equivalent and municipal
political subdivisions of such State a
total of one-third of such State's
allocations under subparagraph (B),
together with all accrued interest
thereon; and
``(II) the remaining balance of
such revenues deposited into the
account that are not allocated under
subparagraph (B), together with
interest thereon, shall be transmitted
to the miscellaneous receipts account
of the Treasury, except that until a
lease has been in production for 20
years 50 percent of such remaining
balance derived from a lease shall be
paid in accordance with subclause (I).
``(ii) Allocations to certain county-
equivalent political subdivisions.--The
Secretary shall under clause (i)(I) make
equitable allocations of the revenues to
county-equivalent political subdivisions that
the Secretary determines are closely associated
with the leasing and production of oil shale
and tar sands, under a formula that the
Secretary shall determine by regulation.
``(iii) Allocations to municipal political
subdivisions.--The initial allocation to each
county-equivalent political subdivision under
clause (ii) shall be further allocated to the
county-equivalent political subdivision and any
municipal political subdivisions located
partially or wholly within the boundaries of
the county-equivalent political subdivision on
an equitable basis under a formula that the
Secretary shall determine by regulation.
``(D) Investment of deposits.--The deposits in the
Treasury account established under this section shall
be invested by the Secretary of the Treasury in
securities backed by the full faith and credit of the
United States having maturities suitable to the needs
of the account and yielding the highest reasonably
available interest rates as determined by the Secretary
of the Treasury.
``(E) Use of funds.--A recipient of funds under
this subsection may use the funds for any lawful
purpose as determined by State law. Funds allocated
under this subsection to States and local political
subdivisions may be used as matching funds for other
Federal programs without limitation. Funds allocated to
local political subdivisions under this subsection may
not be used in calculation of payments to such local
political subdivisions under programs for payments in
lieu of taxes or other similar programs.
``(F) No accounting required.--No recipient of
funds under this subsection shall be required to
account to the Federal Government for the expenditure
of such funds, except as otherwise may be required by
law.
``(4) Definitions.--In this subsection:
``(A) County-equivalent political subdivision.--The
term `county-equivalent political subdivision' means a
political jurisdiction immediately below the level of
State government, including a county, parish, borough
in Alaska, independent municipality not part of a
county, parish, or borough in Alaska, or other
equivalent subdivision of a State.
``(B) Municipal political subdivision.--The term
`municipal political subdivision' means a municipality
located within and part of a county, parish, borough in
Alaska, or other equivalent subdivision of a State.''.
SEC. 167. AVAILABILITY OF OCS RECEIPTS TO PROVIDE PAYMENTS UNDER SECURE
RURAL SCHOOLS AND COMMUNITY SELF-DETERMINATION ACT OF
2000.
Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338)
is amended by inserting after subsection (i), as added by section 147
of this Act, the following new subsection:
``(j) Conditional Availability of Funds for Payments Under Secure
Rural Schools and Community Self-Determination Act of 2000.--
``(1) Availability of funds.--Subject to paragraph (2), but
notwithstanding any other provision of this section,
$50,000,000 of OCS Receipts shall be available to the Secretary
of the Treasury for each of fiscal years 2009 through 2010 to
make payments under sections 102 and 103 of the Secure Rural
Schools and Community Self-Determination Act of 2000 (Public
Law 106-393; 16 U.S.C. 500 note). The Secretary of the Treasury
shall use the funds made available by this subsection to make
such payments in lieu of using funds in the Treasury not
otherwise appropriated, as otherwise authorized by sections
102(b)(3) and 103(b)(2) of such Act.
``(2) Condition on availability.--OCS Receipts shall be
available under paragraph (1) for a fiscal year only if--
``(A) title I of the Secure Rural Schools and
Community Self-Determination Act of 2000 has been
reauthorized through at least that fiscal year; and
``(B) the authority to initiate projects under
titles II and III of such Act has been extended through
at least that fiscal year.''.
SEC. 168. SENSE OF THE CONGRESS TO BUY AND BUILD AMERICAN.
(a) Buy and Build American.--It is the intention of the Congress
that this subtitle, among other things, result in a healthy and growing
American industrial, manufacturing, transportation, and service sector
employing the vast talents of America's workforce to assist in the
development of affordable energy from the Outer Continental Shelf.
Moreover, the Congress intends to monitor the deployment of personnel
and material in the Outer Continental Shelf to encourage the
development of American technology and manufacturing to enable United
States workers to benefit from this subtitle by good jobs and careers,
as well as the establishment of important industrial facilities to
support expanded access to American resources.
(b) Safeguard for Extraordinary Ability.--Section 30(a) of the
Outer Continental Shelf Lands Act (43 U.S.C. 1356(a)) is amended in the
matter preceding paragraph (1) by striking ``regulations which'' and
inserting ``regulations that shall be supplemental and complimentary
with and under no circumstances a substitution for the provisions of
the Constitution and laws of the United States extended to the subsoil
and seabed of the outer Continental Shelf pursuant to section 144(a)(1)
of this Act, except insofar as such laws would otherwise apply to
individuals who have extraordinary ability in the sciences, arts,
education, or business, which has been demonstrated by sustained
national or international acclaim, and that''.
Subtitle D--Nuclear
SEC. 181. INCENTIVES FOR INNOVATIVE TECHNOLOGIES.
(a) Definition of Project Cost.--Section 1701(1) of the Energy
Policy Act of 2005 (42 U.S.C. 16511(1)) is amended by inserting a new
paragraph (4) and renumbering the paragraphs accordingly:
``(4) Project cost.--The term `project cost' means all
costs associated with the development, planning, design,
engineering, permitting and licensing, construction,
commissioning, start-up, shakedown and financing of the
facility, including but not limited to reasonable escalation
and contingencies, the cost of and fees for the guarantee,
reasonably required reserve funds, initial working capital and
interest during construction.''.
(b) Terms and Conditions.--Section 1702 of the Energy Policy Act of
2005 (42 U.S.C. 16512) is amended by striking subsections (b) and (c)
and inserting the following:
``(b) Specific Appropriation or Contribution.--
``(1) In general.--No guarantee shall be made unless--
``(A) an appropriation for the cost has been made;
or
``(B) the Secretary has received from the borrower
a payment in full for the cost of the obligation and
deposited the payment into the Treasury; or
``(C) a combination of subparagraphs (A) and (B)
has been made, that when combined is sufficient to
cover the cost of the obligation.
``(2) Relation to other laws.--Section 504(b) of the
Federal Credit Reform Act of 1990 (2 U.S.C. 661c(b)) shall not
apply to a loan guarantee made in accordance with paragraph
(1)(B).''.
(c) Amount.--Section 1702 of the Energy Policy Act of 2005 (42
U.S.C. 16512) is amended by striking subsection (c) and inserting the
following:
``(c) Amount.--
``(1) In general.--Subject to paragraph (2), the Secretary
shall guarantee 100 percent of the obligation for a facility
that is the subject of the guarantee, or a lesser amount if
requested by the borrower.
``(2) Limitation.--The total amount of loans guaranteed for
a facility by the Secretary shall not exceed 80 percent of the
total cost of the facility, as estimated at the time at which
the guarantee is issued.''.
(d) Fees.--Section 1702(h) of the Energy Policy Act of 2005 (42
U.S.C. 16512(h)) is amended by striking paragraph (2) and inserting the
following:
``(2) Availability.--Fees collected under this subsection
shall--
``(A) be deposited by the Secretary into a special
fund in the Treasury to be known as the `Incentives For
Innovative Technologies Fund'; and
``(B) remain available to the Secretary for
expenditure, without further appropriation or fiscal
year limitation, for administrative expenses incurred
in carrying out this title.''.
SEC. 182. AUTHORIZATION FOR NUCLEAR POWER 2010 PROGRAM.
Section 952(c) of the Energy Policy Act of 2005 (42 U.S.C. 16014)
is amended by striking paragraphs (1) and (2) and inserting the
following:
``(1) In general.--The Secretary shall carry out a Nuclear
Power 2010 Program to position the nation to start construction
of new nuclear power plants by 2010 or as close to 2010 as
achievable.
``(2) Scope of program.--The Nuclear Power 2010 Program
shall be cost-shared with the private sector and shall support
the following objectives:
``(A) Demonstrating the licensing process for new
nuclear power plants, including the Nuclear Regulatory
Commission process for obtaining early site permits
(ESPs), combined construction/operating licenses
(COLs), and design certifications.
``(B) Conducting first-of-a-kind design and
engineering work on at least two advanced nuclear
reactor designs sufficient to bring those designs to a
state of design completion sufficient to allow
development of firm cost estimates.
``(3) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary to carry out the
Nuclear Power 2010 Program:
``(A) $182,800,000 for fiscal year 2008.
``(B) $159,600,000 for fiscal year 2009.
``(C) $135,600,000 for fiscal year 2010.
``(D) $46,900,000 for fiscal year 2011.
``(E) $2,200,000 for fiscal year 2012.''.
SEC. 183. DOMESTIC MANUFACTURING BASE FOR NUCLEAR COMPONENTS AND
EQUIPMENT.
(a) Establishment of Interagency Working Group.--
(1) Purposes.--The purposes of this subsection are--
(A) to increase the competitiveness of the United
States nuclear energy products and services industries;
(B) to identify the stimulus or incentives
necessary to cause United States manufacturers of
nuclear energy products to expand manufacturing
capacity;
(C) to facilitate the export of United States
nuclear energy products and services;
(D) to reduce the trade deficit of the United
States through the export of United States nuclear
energy products and services;
(E) to retain and create nuclear energy
manufacturing and related service jobs in the United
States;
(F) to integrate the objectives in subparagraphs
(A) through (E) in a manner consistent with the
interests of the United States, into the foreign policy
of the United States; and
(G) to authorize funds for increasing United States
capacity to manufacture nuclear energy products and
supply nuclear energy services.
(2) Establishment.--
(A) There shall be established an interagency
working group that, in consultation with representative
industry organizations and manufacturers of nuclear
energy products, shall make recommendations to
coordinate the actions and programs of the Federal
Government in order to promote increasing domestic
manufacturing capacity and export of domestic nuclear
energy products and services.
(B) The Interagency Working Group shall be composed
of--
(i) the Secretary of Energy, or the
Secretary's designee, who shall chair the
interagency working group and shall provide
staff for carrying out the functions of the
interagency working group;
(ii) representatives of--
(I) the Department of Energy;
(II) the Department of Commerce;
(III) the Department of Defense;
(IV) the Department of the
Treasury;
(V) the Department of State;
(VI) the Environmental Protection
Agency;
(VII) the United States Agency for
International Development;
(VIII) the Export-Import Bank of
the United States;
(IX) the Trade and Development
Agency;
(X) the Small Business
Administration;
(XI) the Office of the United
States Trade Representative; and
(XII) other Federal agencies, as
determined by the President.
(C) The heads of appropriate agencies shall detail
such personnel and furnish such services to the
interagency group, with or without reimbursement, as
may be necessary to carry out the group's functions.
(3) Duties of the interagency working group.--
(A) Not later than 6 months after the date of
enactment of this Act, the interagency working group
established under paragraph (2)(A) shall identify the
actions necessary to promote the safe development and
application in foreign countries of nuclear energy
products and services in order to--
(i) increase electricity generation from
nuclear energy sources through development of
new generation facilities;
(ii) improve the efficiency, safety, and
reliability of existing nuclear generating
facilities through modifications; and
(iii) enhance the safe treatment, handling,
storage, and disposal of used nuclear fuel.
(B) Not later than 6 months after the date of
enactment of this Act, the interagency working group
shall identify mechanisms (including tax stimulus for
investment, loans and loan guarantees, and grants)
necessary for United States companies to increase their
capacity to produce or provide nuclear energy products
and services, and to increase their exports of nuclear
energy products and services. The interagency working
group shall identify administrative or legislative
initiatives necessary to--
(i) encourage United States companies to
increase their manufacturing capacity for
nuclear energy products;
(ii) provide technical and financial
assistance and support to small and mid-sized
businesses to establish quality assurance
programs in accordance with domestic and
international nuclear quality assurance code
requirements;
(iii) encourage, through financial
incentives, private sector capital investment
to expand manufacturing capacity; and
(iv) provide technical assistance and
financial incentives to small and mid-sized
businesses to develop the workforce necessary
to increase manufacturing capacity and meet
domestic and international nuclear quality
assurance code requirements.
(C) Not later than 9 months after the date of
enactment of this Act, the interagency working group
shall provide a report to Congress on its findings
under subparagraphs (A) and (B), including
recommendations for new legislative authority where
necessary.
(4) Trade assistance.--The interagency working group shall
encourage the member agencies of the interagency working group
to--
(A) provide technical training and education for
international development personnel and local users in
their own country;
(B) provide financial and technical assistance to
nonprofit institutions that support the marketing and
export efforts of domestic companies that provide
nuclear energy products and services;
(C) develop nuclear energy projects in foreign
countries;
(D) provide technical assistance and training
materials to loan officers of the World Bank,
international lending institutions, commercial and
energy attaches at embassies of the United States and
other appropriate personnel in order to provide
information about nuclear energy products and services
to foreign governments or other potential project
sponsors;
(E) support, through financial incentives, private
sector efforts to commercialize and export nuclear
energy products and services in accordance with the
subsidy codes of the World Trade Organization; and
(F) augment budgets for trade and development
programs in order to support pre-feasibility or
feasibility studies for projects that utilize nuclear
energy products and services.
(5) Authorization of appropriations.--There are authorized
to be appropriated to the Secretary of Energy for purposes of
carrying out this subtitle $20,000,000 for fiscal years 2008
and 2009.
(b) Credit for Qualifying Nuclear Power Manufacturing.--Subpart E
of part IV of subchapter A of chapter 1 of the Internal Revenue Code is
amended by inserting after section 48B the following new section:
``SEC. 48C. QUALIFYING NUCLEAR POWER MANUFACTURING CREDIT.
``(a) In General.--For purposes of section 46, the qualifying
nuclear power manufacturing credit for any taxable year is an amount
equal to 20 percent of the qualified investment for such taxable year.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a), the
qualified investment for any taxable year is the basis of
eligible property placed in service by the taxpayer during such
taxable year--
``(A) which is either part of a qualifying nuclear
power manufacturing project or is qualifying nuclear
power manufacturing equipment,
``(B)(i) the construction, reconstruction, or
erection of which is completed by the taxpayer, or
``(ii) which is acquired by the taxpayer if the
original use of such property commences with the
taxpayer,
``(C) with respect to which depreciation (or
amortization in lieu of depreciation) is allowable, and
``(D) which is placed in service on or before
December 31, 2015.
``(2) Special rule for certain subsidized property.--Rules
similar to section 48(a)(4) shall apply for purposes of this
section.
``(3) Certain qualified progress expenditures rules made
applicable.--Rules similar to the rules of subsections (c)(4)
and (d) of section 46 (as in effect on the day before the
enactment of the Revenue Reconciliation Act of 1990) shall
apply for purposes of this section.
``(c) Definitions.--For purposes of this section--
``(1) Qualifying nuclear power manufacturing project.--The
term `qualifying nuclear power manufacturing project' means any
project which is designed primarily to enable the taxpayer to
produce or test equipment necessary for the construction or
operation of a nuclear power plant.
``(2) Qualifying nuclear power manufacturing equipment.--
The term `qualifying nuclear power manufacturing equipment'
means machine tools and other similar equipment, including
computers and other peripheral equipment, acquired or
constructed primarily to enable the taxpayer to produce or test
equipment necessary for the construction or operation of a
nuclear power plant.
``(3) Project.--The term `project' includes any building
constructed to house qualifying nuclear power manufacturing
equipment.''.
(c) Conforming Amendments.--
(1) Additional investment credit.--Section 46 of such Code
is amended--
(A) by striking ``and'' at the end of paragraph
(3);
(B) by striking the period at the end of paragraph
(4) and inserting ``, and''; and
(C) by inserting after paragraph (4) the following
new paragraph:
``(5) the qualifying nuclear power manufacturing credit.''.
(2) Application of section 49.--Subparagraph (C) of section
49(a)(1) of such Code is amended by--
(A) by striking ``and'' at the end of clause (iii);
(B) by striking the period at the end of clause
(iv) and inserting ``, and''; and
(C) by inserting after clause (iv) the following
new clause:
``(v) the basis of any property which is
part of a qualifying nuclear power equipment
manufacturing project under section 48C.''.
(3) Table of sections.--The table of sections preceding
section 46 of such Code is amended by inserting after the item
for section 48B the following new line:
``Sec. 48C. Qualifying nuclear power manufacturing credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to property (1) the construction, reconstruction, or erection of
which of began after the date of enactment, or (2) which was acquired
by the taxpayer on or after the date of enactment and not pursuant to a
binding contract which was in effect on the day prior to the date of
enactment.
SEC. 184. NUCLEAR ENERGY WORKFORCE.
Section 1101 of the Energy Policy Act of 2005 (42 U.S.C. 16411) is
amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following:
``(d) Workforce Training.--
``(1) In general.--The Secretary of Labor, in cooperation
with the Secretary of Energy, shall promulgate regulations to
implement a program to provide workforce training to meet the
high demand for workers skilled in the nuclear utility and
nuclear energy products and services industries.
``(2) Consultation.--In carrying out this subsection, the
Secretary of Labor shall consult with representatives of the
nuclear utility and nuclear energy products and services
industries, and organized labor, concerning skills that are
needed in those industries.
``(3) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary of Labor,
working in coordination with the Secretaries of Education and
Energy $20,000,000 for each of fiscal years 2008 through 2012
for use in implementing a program to provide workforce training
to meet the high demand for workers skilled in the nuclear
utility and nuclear energy products and services industries.''.
SEC. 185. NATIONAL NUCLEAR ENERGY COUNCIL.
(a) In General.--
(1) The Secretary of Energy shall establish a National
Nuclear Energy Council (hereinafter the ``Council'').
(2) The National Nuclear Energy Council shall be subject to
the requirements of the Federal Advisory Committee Act (5
U.S.C. Appendix 2).
(b) Purpose.--The National Nuclear Energy Council shall--
(1) serve in an advisory capacity to the Secretary of
Energy regarding nuclear energy on matters submitted to the
Council by the Secretary of Energy; and
(2) advise, inform, and make recommendations to the
Secretary of Energy, and represent the views of the nuclear
energy industry with respect to any matter relating to nuclear
energy.
(c) Membership and Organization.--
(1) The members of the Council shall be appointed by the
Secretary of Energy.
(2) The Council may establish such study and administrative
committees as it may deem appropriate. Study committees shall
only assist the Council in preparing its advice, information,
or recommendations to the Secretary of Energy. Administrative
committees shall be formed solely for the purpose of assisting
the Council or its Chairman in the management of the internal
affairs of the Council.
(3) The officers of the Council shall consist of a
Chairman, a Vice Chairman, and such other officers as may be
approved by the Council. The Chairman and Vice Chairman must be
members of the Council and shall receive no compensation for
service as officers of the Council.
(4) The Secretary of Energy shall be Cochairman of the
Council. If the Secretary of Energy designates a full-time,
salaried official of the Department of Energy as his alternate,
such alternate may exercise any duties of the Secretary of
Energy and may perform any function on the Council otherwise
reserved for the Secretary of Energy.
(5) The Chairman and the Vice Chairman shall be elected by
the Council at its organizational meeting to serve until their
successors are elected at the next organizational meeting of
the Council.
(d) Meetings.--
(1) Regular meetings of the Council shall be held at least
twice each year at times determined by the Chairman and
approved by the Government Cochairman.
(2) No meeting of the Council shall be held unless the
Government Cochairman approves the agenda thereof, approves the
calling thereof, and is present thereat.
(3) The time and place of all Council meetings shall be
given general publicity and such meetings shall be open to the
public.
(e) Studies by the Council.--
(1) The Council may establish study committees to prepare
reports for the consideration of the Council pursuant to
requests from the Secretary of Energy for advice, information,
and recommendations.
(2) The Secretary of Energy or a full-time employee of the
Department of Energy designated by the Secretary shall be the
Cochairman of each study committee.
(3) The members of study committees shall be selected from
the Council membership on the basis of their training,
experience, and general qualifications to deal with the matters
assigned.
SEC. 186. NUCLEAR WASTE MANAGEMENT.
(a) High Level Waste Authority.--
(1) Establishment.--Not later than the earlier of--
(A) 90 days after the submittal of a license
application for a repository at Yucca Mountain; or
(B) 1 year after the date of enactment of this Act,
the President shall establish a High Level Waste Authority (in
this section referred to as the ``Authority'').
(2) Duties.--The Authority--
(A) shall assume the responsibilities of the
Secretary of Energy with respect to contracts entered
into under section 302(a) of the Nuclear Waste Policy
Act of 1982 (42 U.S.C. 10222(a));
(B) shall consider, as appropriate, all reasonable
used fuel options in addition to direct disposal,
including recycling, interim storage, and alternate
geologic repository sites outside the State of Nevada;
(C) may enter into contracts with civilian nuclear
power reactor owners and operators for used fuel
management, including recycling, fuel fabrication, and
sale or disposition of materials derived from
recycling; and
(D) may negotiate with willing host communities or
States for supporting facilities and activities.
(3) Membership.--The Authority shall consist of 7 members,
to be appointed by the President, with the advice and consent
of the Senate, from among individuals who--
(A) are United States citizens;
(B) have experience in nuclear industry corporate
management; and
(C) have large corporation management expertise.
(4) Terms.--
(A) In general.--Except as provided in subparagraph
(B), members of the Authority shall serve for terms of
5 years, and may serve for not more than 2 terms.
(B) Initial terms.--Of the individuals appointed
initially to the Authority--
(i) 2 shall be appointed for an initial
term of 5 years;
(ii) 2 shall be appointed for an initial
term of 4 years;
(iii) 2 shall be appointed for an initial
term of 3 years; and
(iv) 1 shall be appointed for an initial
term of 2 years.
(C) Vacancies.--The President, with the advice and
consent of the Senate, shall appoint individuals to
fill vacancies on the Authority, in the same manner as
the original appointment was made, to serve for the
remainder of the term vacated.
(5) Travel expenses and per diem.--Members of the Authority
shall be reimbursed by the Authority for travel expenses
incurred as part of their service on the Authority, including
per diem in lieu of subsistence in accordance with subchapter I
of chapter 57 of title 5, United States Code, for each day on
which they are engaged in the business of the Authority.
(6) Report to congress.--Not later than 1 year after the
Authority is established under paragraph (1), and annually
thereafter, the Authority shall transmit to the Congress a
report on its activities.
(b) Recycling Regulations.--Not later than 1 year after the date of
enactment of this Act, the Nuclear Regulatory Commission, in
collaboration with the Secretary of Energy, shall issue regulations for
licensing facilities for the recovery and use of plutonium from used
fuel recycling that provide appropriate protections for the common
defense and security.
(c) Funding.--The Authority's activities shall be funded through--
(1) the Nuclear Waste Fund established under section 302(c)
of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c));
(2) appropriations authorized under subsection (e); and
(3) any contributions provided by State or local
governments or from the private sector.
(d) Research and Development.--Nothing in this section shall be
construed to reduce the responsibility of the Secretary of Energy to
conduct research and development on advanced nuclear fuel cycles and
separation technologies.
(e) Authorization of Appropriations.--There are authorized to be
appropriated to the Secretary of Energy for carrying out this section
such sums as may be necessary.
TITLE II--INCREASE OUR UTILIZATION EFFICIENCY
Subtitle A--Coal to Liquids
SEC. 201. LOCATION OF COAL-TO-LIQUID MANUFACTURING FACILITIES.
The Secretary of Energy, in coordination with the head of any
affected agency, shall promulgate such regulations as the Secretary
determines to be necessary to support the development on Federal land
(including land of the Department of Energy, military bases, and
military installations closed or realigned under the defense base
closure and realignment) of coal-to-liquid manufacturing facilities and
associated infrastructure, including the capture, transportation, or
sequestration of carbon dioxide.
SEC. 202. AUTHORIZATION TO CONDUCT RESEARCH, DEVELOPMENT, TESTING, AND
EVALUATION OF ASSURED DOMESTIC FUELS.
Of the amount authorized to be appropriated for the Air Force for
research, development, test, and evaluation, $10,000,000 may be made
available for the Air Force Research Laboratory to continue support
efforts to test, qualify, and procure synthetic fuels developed from
coal for aviation jet use.
SEC. 203. COAL-TO-LIQUID LONG-TERM FUEL PROCUREMENT AND DEPARTMENT OF
DEFENSE DEVELOPMENT.
Section 2922a of title 10, United States Code is amended--
(1) in subsection (b)--
(A) by inserting ``(1)'' before ``The Secretary'';
and
(B) by adding at the end the following:
``(2)(A) The Secretary of Defense may enter into contracts or other
agreements with private companies or other entities to develop and
operate coal-to-liquid manufacturing facilities on or near military
installations.
``(B) In entering into contracts and other agreements under
subparagraph (A), the Secretary shall consider land availability,
testing opportunities, and proximity to raw materials.''; and
(2) in subsection (d)--
(A) by striking ``Subject to applicable provisions
of law, any'' and inserting ``Any'';
(B) by inserting after ``covered fuel'' the
following: ``or coal-to-liquid fuel''; and
(C) by striking ``1 or more years'' and inserting
``up to 25 years''.
Subtitle B--Energy Tax Provisions
SEC. 211. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) Short Title.--This subtitle may be cited as the ``Renewable
Energy and Energy Conservation Tax Act of 2008''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this subtitle an amendment or repeal is expressed
in terms of an amendment to, or repeal of, a section or other
provision, the reference shall be considered to be made to a section or
other provision of the Internal Revenue Code of 1986.
PART 1--PRODUCTION INCENTIVES
SEC. 221. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY CREDIT.
(a) Extension of Credit.--Each of the following provisions of
section 45(d) (relating to qualified facilities) is amended by striking
``January 1, 2009'' and inserting ``January 1, 2012'':
(1) Paragraph (1).
(2) Clauses (i) and (ii) of paragraph (2)(A).
(3) Clauses (i)(I) and (ii) of paragraph (3)(A).
(4) Paragraph (4).
(5) Paragraph (5).
(6) Paragraph (6).
(7) Paragraph (7).
(8) Subparagraphs (A) and (B) of paragraph (9).
(b) Modification of Credit Phaseout.--
(1) Repeal of phaseout.--Subsection (b) of section 45 is
amended--
(A) by striking paragraph (1), and
(B) by striking ``the 8 cent amount in paragraph
(1),'' in paragraph (2) thereof.
(2) Limitation based on investment in facility.--Subsection
(b) of section 45 is amended by inserting before paragraph (2)
the following new paragraph:
``(1) Limitation based on investment in facility.--
``(A) In general.--In the case of any qualified
facility originally placed in service after December
31, 2009, the amount of the credit determined under
subsection (a) for any taxable year with respect to
electricity produced at such facility shall not exceed
the product of--
``(i) the applicable percentage with
respect to such facility, multiplied by
``(ii) the eligible basis of such facility.
``(B) Carryforward of unused limitation and excess
credit.--
``(i) Unused limitation.--If the limitation
imposed under subparagraph (A) with respect to
any facility for any taxable year exceeds the
prelimitation credit for such facility for such
taxable year, the limitation imposed under
subparagraph (A) with respect to such facility
for the succeeding taxable year shall be
increased by the amount of such excess.
``(ii) Excess credit.--If the prelimitation
credit with respect to any facility for any
taxable year exceeds the limitation imposed
under subparagraph (A) with respect to such
facility for such taxable year, the credit
determined under subsection (a) with respect to
such facility for the succeeding taxable year
(determined before the application of
subparagraph (A) for such succeeding taxable
year) shall be increased by the amount of such
excess. With respect to any facility, no amount
may be carried forward under this clause to any
taxable year beginning after the 10-year period
described in subsection (a)(2)(A)(ii) with
respect to such facility.
``(iii) Prelimitation credit.--The term
`prelimitation credit' with respect to any
facility for a taxable year means the credit
determined under subsection (a) with respect to
such facility for such taxable year, determined
without regard to subparagraph (A) and after
taking into account any increase for such
taxable year under clause (ii).
``(C) Applicable percentage.--For purposes of this
paragraph--
``(i) In general.--The term `applicable
percentage' means, with respect to any
facility, the appropriate percentage prescribed
by the Secretary for the month in which such
facility is originally placed in service.
``(ii) Method of prescribing applicable
percentages.--The applicable percentages
prescribed by the Secretary for any month under
clause (i) shall be percentages which yield
over a 10-year period amounts of limitation
under subparagraph (A) which have a present
value equal to 35 percent of the eligible basis
of the facility.
``(iii) Method of discounting.--The present
value under clause (ii) shall be determined--
``(I) as of the last day of the 1st
year of the 10-year period referred to
in clause (ii),
``(II) by using a discount rate
equal to the greater of 110 percent of
the Federal long-term rate as in effect
under section 1274(d) for the month
preceding the month for which the
applicable percentage is being
prescribed, or 4.5 percent, and
``(III) by taking into account the
limitation under subparagraph (A) for
any year on the last day of such year.
``(D) Eligible basis.--For purposes of this
paragraph--
``(i) In general.--The term `eligible
basis' means, with respect to any facility, the
sum of--
``(I) the basis of such facility
determined as of the time that such
facility is originally placed in
service, and
``(II) the portion of the basis of
any shared qualified property which is
properly allocable to such facility
under clause (ii).
``(ii) Rules for allocation.--For purposes
of subclause (II) of clause (i), the basis of
shared qualified property shall be allocated
among all qualified facilities which are
projected to be placed in service and which
require utilization of such property in
proportion to projected generation from such
facilities.
``(iii) Shared qualified property.--For
purposes of this paragraph, the term `shared
qualified property' means, with respect to any
facility, any property described in section
168(e)(3)(B)(vi)--
``(I) which a qualified facility
will require for utilization of such
facility, and
``(II) which is not a qualified
facility.
``(iv) Special rule relating to geothermal
facilities.--In the case of any qualified
facility using geothermal energy to produce
electricity, the basis of such facility for
purposes of this paragraph shall be determined
as though intangible drilling and development
costs described in section 263(c) were
capitalized rather than expensed.
``(E) Special rule for first and last year of
credit period.--In the case of any taxable year any
portion of which is not within the 10-year period
described in subsection (a)(2)(A)(ii) with respect to
any facility, the amount of the limitation under
subparagraph (A) with respect to such facility shall be
reduced by an amount which bears the same ratio to the
amount of such limitation (determined without regard to
this subparagraph) as such portion of the taxable year
which is not within such period bears to the entire
taxable year.
``(F) Election to treat all facilities placed in
service in a year as 1 facility.--At the election of
the taxpayer, all qualified facilities which are part
of the same project and which are placed in service
during the same calendar year shall be treated for
purposes of this section as 1 facility which is placed
in service at the mid-point of such year or the first
day of the following calendar year.''.
(c) Trash Facility Clarification.--Paragraph (7) of section 45(d)
is amended--
(1) by striking ``facility which burns'' and inserting
``facility (other than a facility described in paragraph (6))
which uses'', and
(2) by striking ``combustion''.
(d) Expansion of Biomass Facilities.--
(1) Open-loop biomass facilities.--Paragraph (3) of section
45(d) is amended by redesignating subparagraph (B) as
subparagraph (C) and by inserting after subparagraph (A) the
following new subparagraph:
``(B) Expansion of facility.--Such term shall
include a new unit placed in service after the date of
the enactment of this subparagraph in connection with a
facility described in subparagraph (A), but only to the
extent of the increased amount of electricity produced
at the facility by reason of such new unit.''.
(2) Closed-loop biomass facilities.--Paragraph (2) of
section 45(d) is amended by redesignating subparagraph (B) as
subparagraph (C) and inserting after subparagraph (A) the
following new subparagraph:
``(B) Expansion of facility.--Such term shall
include a new unit placed in service after the date of
the enactment of this subparagraph in connection with a
facility described in subparagraph (A)(i), but only to
the extent of the increased amount of electricity
produced at the facility by reason of such new unit.''.
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
property originally placed in service after December 31, 2008.
(2) Repeal of credit phaseout.--The amendments made by
subsection (b)(1) shall apply to taxable years ending after
December 31, 2008.
(3) Limitation based on investment in facility.--The
amendment made by subsection (b)(2) shall apply to property
originally placed in service after December 31, 2009.
(4) Trash facility clarification.--The amendments made by
subsection (c) shall apply to electricity produced and sold
after the date of the enactment of this Act.
(5) Expansion of biomass facilities.--The amendments made
by subsection (d) shall apply to property placed in service
after the date of the enactment of this Act.
SEC. 222. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM MARINE
RENEWABLES.
(a) In General.--Paragraph (1) of section 45(c) (relating to
resources) is amended by striking ``and'' at the end of subparagraph
(G), by striking the period at the end of subparagraph (H) and
inserting ``, and'', and by adding at the end the following new
subparagraph:
``(I) marine and hydrokinetic renewable energy.''.
(b) Marine Renewables.--Subsection (c) of section 45 is amended by
adding at the end the following new paragraph:
``(10) Marine and hydrokinetic renewable energy.--
``(A) In general.--The term `marine and
hydrokinetic renewable energy' means energy derived
from--
``(i) waves, tides, and currents in oceans,
estuaries, and tidal areas,
``(ii) free flowing water in rivers, lakes,
and streams,
``(iii) free flowing water in an irrigation
system, canal, or other man-made channel,
including projects that utilize nonmechanical
structures to accelerate the flow of water for
electric power production purposes, or
``(iv) differentials in ocean temperature
(ocean thermal energy conversion).
``(B) Exceptions.--Such term shall not include any
energy which is derived from any source which utilizes
a dam, diversionary structure (except as provided in
subparagraph (A)(iii)), or impoundment for electric
power production purposes.''.
(c) Definition of Facility.--Subsection (d) of section 45 is
amended by adding at the end the following new paragraph:
``(11) Marine and hydrokinetic renewable energy
facilities.--In the case of a facility producing electricity
from marine and hydrokinetic renewable energy, the term
`qualified facility' means any facility owned by the taxpayer--
``(A) which has a nameplate capacity rating of at
least 150 kilowatts, and
``(B) which is originally placed in service on or
after the date of the enactment of this paragraph and
before January 1, 2012.''.
(d) Credit Rate.--Subparagraph (A) of section 45(b)(4) is amended
by striking ``or (9)'' and inserting ``(9), or (11)''.
(e) Coordination With Small Irrigation Power.--Paragraph (5) of
section 45(d), as amended by section 221(a), is amended by striking
``January 1, 2012'' and inserting ``the date of the enactment of
paragraph (11)''.
(f) Effective Date.--The amendments made by this section shall
apply to electricity produced and sold after the date of the enactment
of this Act, in taxable years ending after such date.
SEC. 223. EXTENSION OF ELECTRICITY PRODUCTION TAX CREDIT TO ELECTRICITY
PRODUCED FROM THE PRODUCTION OF SUBSTITUTE NATURAL GAS
FROM REFINED COAL OR PETCOKE.
(a) Refined Coal.--Clauses (i) and (ii) of section 45(c)(7)(A) of
the Internal Revenue Code of 1986 (defining refined coal) are amended
to read as follows:
``(i) is a liquid, gaseous or solid fuel
produced from coal (including lignite), high
carbon fly ash or petroleum coke, in each case
including such fuel used as a feedstock,
``(ii) is sold by the taxpayer with the
reasonable expectation that it will be used for
the purpose of producing steam, heat, or
electricity,''.
(b) Special Rules Relating to Refined Coal Production Facilities.--
Subparagraph (A) of section 45(e)(8) of such Code (determination of
credit amount) is amended to read as follows:
``(A) Determination of credit amount.--In the case
of a producer of refined coal, the credit determined
under this section (without regard to this paragraph)
for any taxable year--
``(i) shall be--
``(I) in the case of the production
of electricity, be 2.0 cents multiplied
by the kilowatt hours of electricity
produced, and
``(II) in any other case, be $4.375
per ton of qualified refined coal
produced (or, in the case of refined
coal that is a liquid or gaseous fuel,
40 cents per million BTU of refined
coal), and
``(ii) for electricity or refined coal (as
the case may be)--
``(I) produced by the taxpayer at a
refined coal production facility during
the 10-year period beginning on the
date the facility was originally placed
in service, and
``(II) sold by the taxpayer to an
unrelated person during such 10-year
period and such taxable year.''.
(c) Inflation Adjustment.--Section 45(b)(2) of such Code (related
to credit and phaseout adjustment based on inflation) is amended by--
(1) inserting ``and the 40 cents per million BTU amount''
after ``$4.375 amount'', and
(2) striking ``and'' after ``subsection (e)(8)(A),'' and
inserting ``the $4.375 amount''.
(d) Effective Date.--The amendments made by this section shall
apply to refined coal produced and sold after December 31, 2010.
SEC. 224. EXTENSION AND MODIFICATION OF ENERGY CREDIT.
(a) Extension of Credit.--
(1) Solar energy property.--Paragraphs (2)(A)(i)(II) and
(3)(A)(ii) of section 48(a) (relating to energy credit) are
each amended by striking ``January 1, 2009'' and inserting
``January 1, 2017''.
(2) Fuel cell property.--Subparagraph (E) of section
48(c)(1) (relating to qualified fuel cell property) is amended
by striking ``December 31, 2008'' and inserting ``December 31,
2016''.
(b) Allowance of Energy Credit Against Alternative Minimum Tax.--
Subparagraph (B) of section 38(c)(4) (relating to specified credits) is
amended by striking ``and'' at the end of clause (iii), by striking the
period at the end of clause (iv) and inserting ``, and'', and by adding
at the end the following new clause:
``(v) the credit determined under section
46 to the extent that such credit is
attributable to the energy credit determined
under section 48.''.
(c) Increase of Credit Limitation for Fuel Cell Property.--
Subparagraph (B) of section 48(c)(1) is amended by striking ``$500''
and inserting ``$1,500''.
(d) Public Electric Utility Property Taken Into Account.--
(1) In general.--Paragraph (3) of section 48(a) is amended
by striking the second sentence thereof.
(2) Conforming amendments.--
(A) Paragraph (1) of section 48(c) is amended by
striking subparagraph (D) and redesignating
subparagraph (E) as subparagraph (D).
(B) Paragraph (2) of section 48(c) is amended by
striking subparagraph (D) and redesignating
subparagraph (E) as subparagraph (D).
(e) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall take
effect on the date of the enactment of this Act.
(2) Allowance against alternative minimum tax.--The
amendments made by subsection (b) shall apply to credits
determined under section 46 of the Internal Revenue Code of
1986 in taxable years beginning after the date of the enactment
of this Act and to carrybacks of such credits.
(3) Increase in limitation for fuel cell property.--The
amendment made by subsection (c) shall apply to periods after
the date of the enactment of this Act, in taxable years ending
after such date, under rules similar to the rules of section
48(m) of the Internal Revenue Code of 1986 (as in effect on the
day before the date of the enactment of the Revenue
Reconciliation Act of 1990).
(4) Public electric utility property.--The amendments made
by subsection (d) shall apply to periods after February 13,
2008, in taxable years ending after such date, under rules
similar to the rules of section 48(m) of the Internal Revenue
Code of 1986 (as in effect on the day before the date of the
enactment of the Revenue Reconciliation Act of 1990).
SEC. 225. NEW CLEAN RENEWABLE ENERGY BONDS.
(a) In General.--Part IV of subchapter A of chapter 1 (relating to
credits against tax) is amended by adding at the end the following new
subpart:
``Subpart I--Qualified Tax Credit Bonds
``Sec. 54A. Credit to holders of qualified tax credit bonds.
``Sec. 54B. New clean renewable energy bonds.
``SEC. 54A. CREDIT TO HOLDERS OF QUALIFIED TAX CREDIT BONDS.
``(a) Allowance of Credit.--If a taxpayer holds a qualified tax
credit bond on one or more credit allowance dates of the bond during
any taxable year, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal to the sum
of the credits determined under subsection (b) with respect to such
dates.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit determined
under this subsection with respect to any credit allowance date
for a qualified tax credit bond is 25 percent of the annual
credit determined with respect to such bond.
``(2) Annual credit.--The annual credit determined with
respect to any qualified tax credit bond is the product of--
``(A) the applicable credit rate, multiplied by
``(B) the outstanding face amount of the bond.
``(3) Applicable credit rate.--For purposes of paragraph
(2), the applicable credit rate is the rate which the Secretary
estimates will permit the issuance of qualified tax credit
bonds with a specified maturity or redemption date without
discount and without interest cost to the qualified issuer. The
applicable credit rate with respect to any qualified tax credit
bond shall be determined as of the first day on which there is
a binding, written contract for the sale or exchange of the
bond.
``(4) Special rule for issuance and redemption.--In the
case of a bond which is issued during the 3-month period ending
on a credit allowance date, the amount of the credit determined
under this subsection with respect to such credit allowance
date shall be a ratable portion of the credit otherwise
determined based on the portion of the 3-month period during
which the bond is outstanding. A similar rule shall apply when
the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--
``(1) In general.--The credit allowed under subsection (a)
for any taxable year shall not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
part (other than subpart C and this subpart).
``(2) Carryover of unused credit.--If the credit allowable
under subsection (a) exceeds the limitation imposed by
paragraph (1) for such taxable year, such excess shall be
carried to the succeeding taxable year and added to the credit
allowable under subsection (a) for such taxable year
(determined before the application of paragraph (1) for such
succeeding taxable year).
``(d) Qualified Tax Credit Bond.--For purposes of this section--
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means a new clean renewable energy bond which is
part of an issue that meets the requirements of paragraphs (2),
(3), (4), (5), and (6).
``(2) Special rules relating to expenditures.--
``(A) In general.--An issue shall be treated as
meeting the requirements of this paragraph if, as of
the date of issuance, the issuer reasonably expects--
``(i) 100 percent or more of the available
project proceeds to be spent for 1 or more
qualified purposes within the 3-year period
beginning on such date of issuance, and
``(ii) a binding commitment with a third
party to spend at least 10 percent of such
available project proceeds will be incurred
within the 6-month period beginning on such
date of issuance.
``(B) Failure to spend required amount of bond
proceeds within 3 years.--
``(i) In general.--To the extent that less
than 100 percent of the available project
proceeds of the issue are expended by the close
of the expenditure period for 1 or more
qualified purposes, the issuer shall redeem all
of the nonqualified bonds within 90 days after
the end of such period. For purposes of this
paragraph, the amount of the nonqualified bonds
required to be redeemed shall be determined in
the same manner as under section 142.
``(ii) Expenditure period.--For purposes of
this subpart, the term `expenditure period'
means, with respect to any issue, the 3-year
period beginning on the date of issuance. Such
term shall include any extension of such period
under clause (iii).
``(iii) Extension of period.--Upon
submission of a request prior to the expiration
of the expenditure period (determined without
regard to any extension under this clause), the
Secretary may extend such period if the issuer
establishes that the failure to expend the
proceeds within the original expenditure period
is due to reasonable cause and the expenditures
for qualified purposes will continue to proceed
with due diligence.
``(C) Qualified purpose.--For purposes of this
paragraph, the term `qualified purpose' means a purpose
specified in section 54B(a)(1).
``(D) Reimbursement.--For purposes of this
subtitle, available project proceeds of an issue shall
be treated as spent for a qualified purpose if such
proceeds are used to reimburse the issuer for amounts
paid for a qualified purpose after the date that the
Secretary makes an allocation of bond limitation with
respect to such issue, but only if--
``(i) prior to the payment of the original
expenditure, the issuer declared its intent to
reimburse such expenditure with the proceeds of
a qualified tax credit bond,
``(ii) not later than 60 days after payment
of the original expenditure, the issuer adopts
an official intent to reimburse the original
expenditure with such proceeds, and
``(iii) the reimbursement is made not later
than 18 months after the date the original
expenditure is paid.
``(3) Reporting.--An issue shall be treated as meeting the
requirements of this paragraph if the issuer of qualified tax
credit bonds submits reports similar to the reports required
under section 149(e).
``(4) Special rules relating to arbitrage.--
``(A) In general.--An issue shall be treated as
meeting the requirements of this paragraph if the
issuer satisfies the requirements of section 148 with
respect to the proceeds of the issue.
``(B) Special rule for investments during
expenditure period.--An issue shall not be treated as
failing to meet the requirements of subparagraph (A) by
reason of any investment of available project proceeds
during the expenditure period.
``(C) Special rule for reserve funds.--An issue
shall not be treated as failing to meet the
requirements of subparagraph (A) by reason of any fund
which is expected to be used to repay such issue if--
``(i) such fund is funded at a rate not
more rapid than equal annual installments,
``(ii) such fund is funded in a manner
reasonably expected to result in an amount not
greater than an amount necessary to repay the
issue, and
``(iii) the yield on such fund is not
greater than the discount rate determined under
paragraph (5)(B) with respect to the issue.
``(5) Maturity limitation.--
``(A) In general.--An issue shall not be treated as
meeting the requirements of this paragraph if the
maturity of any bond which is part of such issue
exceeds the maximum term determined by the Secretary
under subparagraph (B).
``(B) Maximum term.--During each calendar month,
the Secretary shall determine the maximum term
permitted under this paragraph for bonds issued during
the following calendar month. Such maximum term shall
be the term which the Secretary estimates will result
in the present value of the obligation to repay the
principal on the bond being equal to 50 percent of the
face amount of such bond. Such present value shall be
determined using as a discount rate the average annual
interest rate of tax-exempt obligations having a term
of 10 years or more which are issued during the month.
If the term as so determined is not a multiple of a
whole year, such term shall be rounded to the next
highest whole year.
``(6) Prohibition on financial conflicts of interest.--An
issue shall be treated as meeting the requirements of this
paragraph if the issuer certifies that--
``(A) applicable State and local law requirements
governing conflicts of interest are satisfied with
respect to such issue, and
``(B) if the Secretary prescribes additional
conflicts of interest rules governing the appropriate
Members of Congress, Federal, State, and local
officials, and their spouses, such additional rules are
satisfied with respect to such issue.
``(e) Other Definitions.--For purposes of this subchapter--
``(1) Credit allowance date.--The term `credit allowance
date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term includes the last day on which the bond is
outstanding.
``(2) Bond.--The term `bond' includes any obligation.
``(3) State.--The term `State' includes the District of
Columbia and any possession of the United States.
``(4) Available project proceeds.--The term `available
project proceeds' means--
``(A) the excess of--
``(i) the proceeds from the sale of an
issue, over
``(ii) the issuance costs financed by the
issue (to the extent that such costs do not
exceed 2 percent of such proceeds), and
``(B) the proceeds from any investment of the
excess described in subparagraph (A).
``(f) Credit Treated as Interest.--For purposes of this subtitle,
the credit determined under subsection (a) shall be treated as interest
which is includible in gross income.
``(g) S Corporations and Partnerships.--In the case of a tax credit
bond held by an S corporation or partnership, the allocation of the
credit allowed by this section to the shareholders of such corporation
or partners of such partnership shall be treated as a distribution.
``(h) Bonds Held by Regulated Investment Companies and Real Estate
Investment Trusts.--If any qualified tax credit bond is held by a
regulated investment company or a real estate investment trust, the
credit determined under subsection (a) shall be allowed to shareholders
of such company or beneficiaries of such trust (and any gross income
included under subsection (f) with respect to such credit shall be
treated as distributed to such shareholders or beneficiaries) under
procedures prescribed by the Secretary.
``(i) Credits May Be Stripped.--Under regulations prescribed by the
Secretary--
``(1) In general.--There may be a separation (including at
issuance) of the ownership of a qualified tax credit bond and
the entitlement to the credit under this section with respect
to such bond. In case of any such separation, the credit under
this section shall be allowed to the person who on the credit
allowance date holds the instrument evidencing the entitlement
to the credit and not to the holder of the bond.
``(2) Certain rules to apply.--In the case of a separation
described in paragraph (1), the rules of section 1286 shall
apply to the qualified tax credit bond as if it were a stripped
bond and to the credit under this section as if it were a
stripped coupon.
``SEC. 54B. NEW CLEAN RENEWABLE ENERGY BONDS.
``(a) New Clean Renewable Energy Bond.--For purposes of this
subpart, the term `new clean renewable energy bond' means any bond
issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for capital expenditures incurred by
public power providers or cooperative electric companies for
one or more qualified renewable energy facilities,
``(2) the bond is issued by a qualified issuer, and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Reduced Credit Amount.--The annual credit determined under
section 54A(b) with respect to any new clean renewable energy bond
shall be 70 percent of the amount so determined without regard to this
subsection.
``(c) Limitation on Amount of Bonds Designated.--
``(1) In general.--The maximum aggregate face amount of
bonds which may be designated under subsection (a) by any
issuer shall not exceed the limitation amount allocated under
this subsection to such issuer.
``(2) National limitation on amount of bonds designated.--
There is a national new clean renewable energy bond limitation
of $2,000,000,000 which shall be allocated by the Secretary as
provided in paragraph (3), except that--
``(A) not more than 60 percent thereof may be
allocated to qualified projects of public power
providers, and
``(B) not more than 40 percent thereof may be
allocated to qualified projects of cooperative electric
companies.
``(3) Method of allocation.--
``(A) Allocation among public power providers.--
After the Secretary determines the qualified projects
of public power providers which are appropriate for
receiving an allocation of the national new clean
renewable energy bond limitation, the Secretary shall,
to the maximum extent practicable, make allocations
among such projects in such manner that the amount
allocated to each such project bears the same ratio to
the cost of such project as the limitation under
subparagraph (2)(A) bears to the cost of all such
projects.
``(B) Allocation among cooperative electric
companies.--The Secretary shall make allocations of the
amount of the national new clean renewable energy bond
limitation described in paragraph (2)(B) among
qualified projects of cooperative electric companies in
such manner as the Secretary determines appropriate.
``(d) Definitions.--For purposes of this section--
``(1) Qualified renewable energy facility.--The term
`qualified renewable energy facility' means a qualified
facility (as determined under section 45(d) without regard to
paragraphs (8) and (10) thereof and to any placed in service
date) owned by a public power provider or a cooperative
electric company.
``(2) Public power provider.--The term `public power
provider' means a State utility with a service obligation, as
such terms are defined in section 217 of the Federal Power Act
(as in effect on the date of the enactment of this paragraph).
``(3) Cooperative electric company.--The term `cooperative
electric company' means a mutual or cooperative electric
company described in section 501(c)(12) or section
1381(a)(2)(C).
``(4) Clean renewable energy bond lender.--The term `clean
renewable energy bond lender' means a lender which is a
cooperative which is owned by, or has outstanding loans to, 100
or more cooperative electric companies and is in existence on
February 1, 2002, and shall include any affiliated entity which
is controlled by such lender.
``(5) Qualified issuer.--The term `qualified issuer' means
a public power provider, a cooperative electric company, a
clean renewable energy bond lender, or a not-for-profit
electric utility which has received a loan or loan guarantee
under the Rural Electrification Act.''.
(b) Reporting.--Subsection (d) of section 6049 (relating to returns
regarding payments of interest) is amended by adding at the end the
following new paragraph:
``(9) Reporting of credit on qualified tax credit bonds.--
``(A) In general.--For purposes of subsection (a),
the term `interest' includes amounts includible in
gross income under section 54A and such amounts shall
be treated as paid on the credit allowance date (as
defined in section 54A(e)(1)).
``(B) Reporting to corporations, etc.--Except as
otherwise provided in regulations, in the case of any
interest described in subparagraph (A) of this
paragraph, subsection (b)(4) of this section shall be
applied without regard to subparagraphs (A), (H), (I),
(J), (K), and (L)(i).
``(C) Regulatory authority.--The Secretary may
prescribe such regulations as are necessary or
appropriate to carry out the purposes of this
paragraph, including regulations which require more
frequent or more detailed reporting.''.
(c) Conforming Amendments.--
(1) Sections 54(c)(2) and 1400N(l)(3)(B) are each amended
by striking ``subpart C'' and inserting ``subparts C and I''.
(2) Section 1397E(c)(2) is amended by striking ``subpart
H'' and inserting ``subparts H and I''.
(3) Section 6401(b)(1) is amended by striking ``and H'' and
inserting ``H, and I''.
(4) The heading of subpart H of part IV of subchapter A of
chapter 1 is amended by striking ``Certain Bonds'' and
inserting ``Clean Renewable Energy Bonds''.
(5) The table of subparts for part IV of subchapter A of
chapter 1 is amended by striking the item relating to subpart H
and inserting the following new items:
``subpart h. nonrefundable credit to holders of clean renewable energy
bonds.
``subpart i. qualified tax credit bonds.''.
(d) Effective Dates.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
SEC. 226. EXTENSION AND MODIFICATION OF SPECIAL RULE TO IMPLEMENT FERC
AND STATE ELECTRIC RESTRUCTURING POLICY.
(a) Extension for Qualified Electric Utilities.--
(1) In general.--Paragraph (3) of section 451(i) (relating
to special rule for sales or dispositions to implement Federal
Energy Regulatory Commission or State electric restructuring
policy) is amended by inserting ``(before January 1, 2010, in
the case of a qualified electric utility)'' after ``January 1,
2008''.
(2) Qualified electric utility.--Subsection (i) of section
451 is amended by redesignating paragraphs (6) through (10) as
paragraphs (7) through (11), respectively, and by inserting
after paragraph (5) the following new paragraph:
``(6) Qualified electric utility.--For purposes of this
subsection, the term `qualified electric utility' means a
person that, as of the date of the qualifying electric
transmission transaction, is vertically integrated, in that it
is both--
``(A) a transmitting utility (as defined in section
3(23) of the Federal Power Act (16 U.S.C. 796(23)))
with respect to the transmission facilities to which
the election under this subsection applies, and
``(B) an electric utility (as defined in section
3(22) of the Federal Power Act (16 U.S.C. 796(22))).''.
(b) Extension of Period for Transfer of Operational Control
Authorized by FERC.--Clause (ii) of section 451(i)(4)(B) is amended by
striking ``December 31, 2007'' and inserting ``the date which is 4
years after the close of the taxable year in which the transaction
occurs''.
(c) Property Located Outside the United States Not Treated as
Exempt Utility Property.--Paragraph (5) of section 451(i) is amended by
adding at the end the following new subparagraph:
``(C) Exception for property located outside the
united states.--The term `exempt utility property'
shall not include any property which is located outside
the United States.''.
(d) Effective Dates.--
(1) Extension.--The amendments made by subsection (a) shall
apply to transactions after December 31, 2007.
(2) Transfers of operational control.--The amendment made
by subsection (b) shall take effect as if included in section
909 of the American Jobs Creation Act of 2004.
(3) Exception for property located outside the united
states.--The amendment made by subsection (c) shall apply to
transactions after the date of the enactment of this Act.
SEC. 227. EXTENSION AND MODIFICATION OF CREDIT FOR RESIDENTIAL ENERGY
EFFICIENT PROPERTY.
(a) Extension.--Section 25D(g) (relating to termination) is amended
by striking ``December 31, 2008'' and inserting ``December 31, 2014''.
(b) Maximum Credit for Solar Electric Property.--
(1) In general.--Section 25D(b)(1)(A) (relating to maximum
credit) is amended by striking ``$2,000'' and inserting
``$4,000''.
(2) Conforming amendment.--Section 25D(e)(4)(A)(i) is
amended by striking ``$6,667'' and inserting ``$13,333''.
(c) Credit for Residential Wind Property.--
(1) In general.--Section 25D(a) (relating to allowance of
credit) is amended by striking ``and'' at the end of paragraph
(2), by striking the period at the end of paragraph (3) and
inserting ``, and'', and by adding at the end the following new
paragraph:
``(4) 30 percent of the qualified small wind energy
property expenditures made by the taxpayer during such year.''.
(2) Limitation.--Section 25D(b)(1) (relating to maximum
credit) is amended by striking ``and'' at the end of
subparagraph (B), by striking the period at the end of
subparagraph (C) and inserting ``, and'', and by adding at the
end the following new subparagraph:
``(D) $500 with respect to each half kilowatt of
capacity (not to exceed $4,000) of wind turbines for
which qualified small wind energy property expenditures
are made.''.
(3) Qualified small wind energy property expenditures.--
(A) In general.--Section 25D(d) (relating to
definitions) is amended by adding at the end the
following new paragraph:
``(4) Qualified small wind energy property expenditure.--
The term `qualified small wind energy property expenditure'
means an expenditure for property which uses a wind turbine to
generate electricity for use in connection with a dwelling unit
located in the United States and used as a residence by the
taxpayer.''.
(B) No double benefit.--Section 45(d)(1) (relating
to wind facility) is amended by adding at the end the
following new sentence: ``Such term shall not include
any facility with respect to which any qualified small
wind energy property expenditure (as defined in
subsection (d)(4) of section 25D) is taken into account
in determining the credit under such section.''.
(4) Maximum expenditures in case of joint occupancy.--
Section 25D(e)(4)(A) (relating to maximum expenditures) is
amended by striking ``and'' at the end of clause (ii), by
striking the period at the end of clause (iii) and inserting
``, and'', and by adding at the end the following new clause:
``(iv) $1,667 in the case of each half
kilowatt of capacity (not to exceed $13,333) of
wind turbines for which qualified small wind
energy property expenditures are made.''.
(d) Credit for Geothermal Heat pump Systems.--
(1) In general.--Section 25D(a) (relating to allowance of
credit), as amended by subsection (c), is amended by striking
``and'' at the end of paragraph (3), by striking the period at
the end of paragraph (4) and inserting ``, and'', and by adding
at the end the following new paragraph:
``(5) 30 percent of the qualified geothermal heat pump
property expenditures made by the taxpayer during such year.''.
(2) Limitation.--Section 25D(b)(1) (relating to maximum
credit), as amended by subsection (c), is amended 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) $2,000 with respect to any qualified
geothermal heat pump property expenditures.''.
(3) Qualified geothermal heat pump property expenditure.--
Section 25D(d) (relating to definitions), as amended by
subsection (c), is amended by adding at the end the following
new paragraph:
``(5) Qualified geothermal heat pump property
expenditure.--
``(A) In general.--The term `qualified geothermal
heat pump property expenditure' means an expenditure
for qualified geothermal heat pump property installed
on or in connection with a dwelling unit located in the
United States and used as a residence by the taxpayer.
``(B) Qualified geothermal heat pump property.--The
term `qualified geothermal heat pump property' means
any equipment which--
``(i) uses the ground or ground water as a
thermal energy source to heat the dwelling unit
referred to in subparagraph (A) or as a thermal
energy sink to cool such dwelling unit, and
``(ii) meets the requirements of the Energy
Star program which are in effect at the time
that the expenditure for such equipment is
made.''.
(4) Maximum expenditures in case of joint occupancy.--
Section 25D(e)(4)(A) (relating to maximum expenditures), as
amended by subsection (c), is amended by striking ``and'' at
the end of clause (iii), by striking the period at the end of
clause (iv) and inserting ``, and'', and by adding at the end
the following new clause:
``(v) $6,667 in the case of any qualified
geothermal heat pump property expenditures.''.
(e) Credit Allowed Against Alternative Minimum Tax.--
(1) In general.--Subsection (c) of section 25D is amended
to read as follows:
``(c) Limitation Based on Amount of Tax; Carryforward of Unused
Credit.--
``(1) Limitation based on amount of tax.--In the case of a
taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) for the taxable year shall
not exceed the excess of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
subpart (other than this section) and section 27 for
the taxable year.
``(2) Carryforward of unused credit.--
``(A) Rule for years in which all personal credits
allowed against regular and alternative minimum tax.--
In the case of a taxable year to which section 26(a)(2)
applies, if the credit allowable under subsection (a)
exceeds the limitation imposed by section 26(a)(2) for
such taxable year reduced by the sum of the credits
allowable under this subpart (other than this section),
such excess shall be carried to the succeeding taxable
year and added to the credit allowable under subsection
(a) for such succeeding taxable year.
``(B) Rule for other years.--In the case of a
taxable year to which section 26(a)(2) does not apply,
if the credit allowable under subsection (a) exceeds
the limitation imposed by paragraph (1) for such
taxable year, such excess shall be carried to the
succeeding taxable year and added to the credit
allowable under subsection (a) for such succeeding
taxable year.''.
(2) Conforming amendments.--
(A) Section 23(b)(4)(B) is amended by inserting
``and section 25D'' after ``this section''.
(B) Section 24(b)(3)(B) is amended by striking
``and 25B'' and inserting ``, 25B, and 25D''.
(C) Section 25B(g)(2) is amended by striking
``section 23'' and inserting ``sections 23 and 25D''.
(D) Section 26(a)(1) is amended by striking ``and
25B'' and inserting ``25B, and 25D''.
(f) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2007.
(2) Application of egtrra sunset.--The amendments made by
subparagraphs (A) and (B) of subsection (e)(2) shall be subject
to title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 in the same manner as the provisions
of such Act to which such amendments relate.
PART 2--TRANSPORTATION CONSERVATION INCENTIVES
Subpart A--Vehicles
SEC. 231. CREDIT FOR PLUG-IN HYBRID VEHICLES.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
(relating to other credits) is amended by adding at the end the
following new section:
``SEC. 30D. PLUG-IN HYBRID VEHICLES.
``(a) Allowance of Credit.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an amount
equal to the sum of the credit amounts determined under subsection (b)
with respect to each qualified plug-in hybrid vehicle placed in service
by the taxpayer during the taxable year.
``(b) Per Vehicle Dollar Limitation.--
``(1) In general.--The amount determined under this
subsection with respect to any qualified plug-in hybrid vehicle
is the sum of the amounts determined under paragraphs (2) and
(3) with respect to such vehicle.
``(2) Base amount.--The amount determined under this
paragraph is $4,000.
``(3) Battery capacity.--In the case of vehicle which draws
propulsion energy from a battery with not less than 5 kilowatt
hours of capacity, the amount determined under this paragraph
is $200, plus $200 for each kilowatt hour of capacity in excess
of 5 kilowatt hours. The amount determined under this paragraph
shall not exceed $2,000.
``(c) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without regard
to this subsection) that is attributable to property of a
character subject to an allowance for depreciation shall be
treated as a credit listed in section 38(b) for such taxable
year (and not allowed under subsection (a)).
``(2) Personal credit.--
``(A) In general.--For purposes of this title, the
credit allowed under subsection (a) for any taxable
year (determined after application of paragraph (1))
shall be treated as a credit allowable under subpart A
for such taxable year.
``(B) Limitation based on amount of tax.--In the
case of a taxable year to which section 26(a)(2) does
not apply, the credit allowed under subsection (a) for
any taxable year (determined after application of
paragraph (1)) shall not exceed the excess of--
``(i) the sum of the regular tax liability
(as defined in section 26(b)) plus the tax
imposed by section 55, over
``(ii) the sum of the credits allowable
under subpart A (other than this section and
sections 23 and 25D) and section 27 for the
taxable year.
``(d) Qualified Plug-In Hybrid Vehicle.--For purposes of this
section--
``(1) In general.--The term `qualified plug-in hybrid
vehicle' means a motor vehicle (as defined in section
30(c)(2))--
``(A) the original use of which commences with the
taxpayer,
``(B) which is acquired for use or lease by the
taxpayer and not for resale,
``(C) which is made by a manufacturer,
``(D) which has a gross vehicle weight rating of
less than 14,000 pounds,
``(E) which has received a certificate of
conformity under the Clean Air Act and meets or exceeds
the Bin 5 Tier II emission standard established in
regulations prescribed by the Administrator of the
Environmental Protection Agency under section 202(i) of
the Clean Air Act for that make and model year vehicle,
``(F) which is propelled to a significant extent by
an electric motor which draws electricity from a
battery which--
``(i) has a capacity of not less than 4
kilowatt hours, and
``(ii) is capable of being recharged from
an external source of electricity, and
``(G) which either--
``(i) is also propelled to a significant
extent by other than an electric motor, or
``(ii) has a significant onboard source of
electricity which also recharges the battery
referred to in subparagraph (F).
``(2) Exception.--The term `qualified plug-in hybrid
vehicle' shall not include any vehicle which is not a passenger
automobile or light truck if such vehicle has a gross vehicle
weight rating of less than 8,500 pounds.
``(3) Other terms.--The terms `passenger automobile',
`light truck', and `manufacturer' have the meanings given such
terms in regulations prescribed by the Administrator of the
Environmental Protection Agency for purposes of the
administration of title II of the Clean Air Act (42 U.S.C. 7521
et seq.).
``(4) Battery capacity.--The term `capacity' means, with
respect to any battery, the quantity of electricity which the
battery is capable of storing, expressed in kilowatt hours, as
measured from a 100 percent state of charge to a 0 percent
state of charge.
``(e) Limitation on Number of Qualified Plug-In Hybrid Vehicles
Eligible for Credit.--
``(1) In general.--In the case of a qualified plug-in
hybrid vehicle sold during the phaseout period, only the
applicable percentage of the credit otherwise allowable under
subsection (a) shall be allowed.
``(2) Phaseout period.--For purposes of this subsection,
the phaseout period is the period beginning with the second
calendar quarter following the calendar quarter which includes
the first date on which the number of qualified plug-in hybrid
vehicles manufactured by the manufacturer of the vehicle
referred to in paragraph (1) sold for use in the United States
after the date of the enactment of this section, is at least
60,000.
``(3) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage is--
``(A) 50 percent for the first 2 calendar quarters
of the phaseout period,
``(B) 25 percent for the 3d and 4th calendar
quarters of the phaseout period, and
``(C) 0 percent for each calendar quarter
thereafter.
``(4) Controlled groups.--Rules similar to the rules of
section 30B(f)(4) shall apply for purposes of this subsection.
``(f) Special Rules.--
``(1) Basis reduction.--The basis of any property for which
a credit is allowable under subsection (a) shall be reduced by
the amount of such credit (determined without regard to
subsection (c)).
``(2) Recapture.--The Secretary shall, by regulations,
provide for recapturing the benefit of any credit allowable
under subsection (a) with respect to any property which ceases
to be property eligible for such credit.
``(3) Property used outside united states, etc., not
qualified.--No credit shall be allowed under subsection (a)
with respect to any property referred to in section 50(b)(1) or
with respect to the portion of the cost of any property taken
into account under section 179.
``(4) Election not to take credit.--No credit shall be
allowed under subsection (a) for any vehicle if the taxpayer
elects to not have this section apply to such vehicle.
``(5) Property used by tax-exempt entity; interaction with
air quality and motor vehicle safety standards.--Rules similar
to the rules of paragraphs (6) and (10) of section 30B(h) shall
apply for purposes of this section.''.
(b) Plug-In Vehicles Not Treated as New Qualified Hybrid
Vehicles.--Section 30B(d)(3) is amended by adding at the end the
following new subparagraph:
``(D) Exclusion of plug-in vehicles.--Any vehicle
with respect to which a credit is allowable under
section 30D (determined without regard to subsection
(c) thereof) shall not be taken into account under this
section.''.
(c) Credit Made Part of General Business Credit.--Section 38(b) is
amended--
(1) by striking ``and'' each place it appears at the end of
any paragraph,
(2) by striking ``plus'' each place it appears at the end
of any paragraph,
(3) by striking the period at the end of paragraph (31) and
inserting ``, plus'', and
(4) by adding at the end the following new paragraph:
``(32) the portion of the plug-in hybrid vehicle credit to
which section 30D(c)(1) applies.''.
(d) Conforming Amendments.--
(1)(A) Section 24(b)(3)(B), as amended by this Act, is
amended by striking ``and 25D'' and inserting ``25D, and 30D''.
(B) Section 25(e)(1)(C)(ii) is amended by inserting
``30D,'' after ``25D,''.
(C) Section 25B(g)(2), as amended by this Act, is amended
by striking ``and 25D'' and inserting ``, 25D, and 30D''.
(D) Section 26(a)(1), as amended by this Act, is amended by
striking ``and 25D'' and inserting ``25D, and 30D''.
(E) Section 1400C(d)(2) is amended by striking ``and 25D''
and inserting ``25D, and 30D''.
(2) Section 1016(a) is amended by striking ``and'' at the
end of paragraph (35), by striking the period at the end of
paragraph (36) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(37) to the extent provided in section 30D(f)(1).''.
(3) Section 6501(m) is amended by inserting ``30D(f)(4),''
after ``30C(e)(5),''.
(4) The table of sections for subpart B of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 30D. Plug-in hybrid vehicles.''.
(e) Treatment of Alternative Motor Vehicle Credit as a Personal
Credit.--
(1) In general.--Paragraph (2) of section 30B(g) is amended
to read as follows:
``(2) Personal credit.--The credit allowed under subsection
(a) for any taxable year (after application of paragraph (1))
shall be treated as a credit allowable under subpart A for such
taxable year.''.
(2) Conforming amendments.--
(A) Subparagraph (A) of section 30C(d)(2) is
amended by striking ``sections 27, 30, and 30B'' and
inserting ``sections 27 and 30''.
(B) Paragraph (3) of section 55(c) is amended by
striking ``30B(g)(2),''.
(f) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
taxable years beginning after December 31, 2008.
(2) Treatment of alternative motor vehicle credit as
personal credit.--The amendments made by subsection (e) shall
apply to taxable years beginning after December 31, 2007.
(g) Application of EGTRRA Sunset.--The amendment made by subsection
(d)(1)(A) shall be subject to title IX of the Economic Growth and Tax
Relief Reconciliation Act of 2001 in the same manner as the provision
of such Act to which such amendment relates.
SEC. 232. EXTENSION AND MODIFICATION OF ALTERNATIVE FUEL VEHICLE
REFUELING PROPERTY CREDIT.
(a) Increase in Credit Amount.--Section 30C (relating to
alternative fuel vehicle refueling property credit) is amended--
(1) by striking ``30 percent'' in subsection (a) and
inserting ``50 percent'', and
(2) by striking ``$30,000'' in subsection (b)(1) and
inserting ``$50,000''.
(b) Extension of Credit.--Paragraph (2) of section 30C(g) (relating
to termination) is amended by striking ``December 31, 2009'' and
inserting ``December 31, 2010''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act, in taxable years ending after such date.
SEC. 233. MODIFICATION OF LIMITATION ON AUTOMOBILE DEPRECIATION.
(a) In General.--Paragraph (5) of section 280F(d) (defining
passenger automobile) is amended to read as follows:
``(5) Passenger automobile.--
``(A) In general.--Except as provided in
subparagraph (B), the term `passenger automobile' means
any 4-wheeled vehicle--
``(i) which is primarily designed or which
can be used to carry passengers over public
streets, roads, or highways (except any vehicle
operated exclusively on a rail or rails), and
``(ii) which is rated at not more than
14,000 pounds gross vehicle weight.
``(B) Exceptions.--The term `passenger automobile'
shall not include--
``(i) any exempt-design vehicle, and
``(ii) any exempt-use vehicle.
``(C) Exempt-design vehicle.--The term `exempt-
design vehicle' means--
``(i) any vehicle which, by reason of its
nature or design, is not likely to be used more
than a de minimis amount for personal purposes,
and
``(ii) any vehicle--
``(I) which is designed to have a
seating capacity of more than 9 persons
behind the driver's seat,
``(II) which is equipped with a
cargo area of at least 5 feet in
interior length which is an open area
or is designed for use as an open area
but is enclosed by a cap and is not
readily accessible directly from the
passenger compartment, or
``(III) has an integral enclosure,
fully enclosing the driver compartment
and load carrying device, does not have
seating rearward of the driver's seat,
and has no body section protruding more
than 30 inches ahead of the leading
edge of the windshield.
``(D) Exempt-use vehicle.--The term `exempt-use
vehicle' means--
``(i) any ambulance, hearse, or combination
ambulance-hearse used by the taxpayer directly
in a trade or business,
``(ii) any vehicle used by the taxpayer
directly in the trade or business of
transporting persons or property for
compensation or hire, and
``(iii) any truck or van if substantially
all of the use of such vehicle by the taxpayer
is directly in--
``(I) a farming business (within
the meaning of section 263A(e)(4)),
``(II) the transportation of a
substantial amount of equipment,
supplies, or inventory, or
``(III) the moving or delivery of
property which requires substantial
cargo capacity.
``(E) Recapture.--In the case of any vehicle which
is not a passenger automobile by reason of being an
exempt-use vehicle, if such vehicle ceases to be an
exempt-use vehicle in any taxable year after the
taxable year in which such vehicle is placed in
service, a rule similar to the rule of subsection (b)
shall apply.''.
(b) Conforming Amendment.--Section 179(b) (relating to limitations)
is amended by striking paragraph (6).
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
Subpart B--Fuels
SEC. 241. EXTENSION AND MODIFICATION OF CREDITS FOR BIODIESEL AND
RENEWABLE DIESEL.
(a) In General.--Sections 40A(g), 6426(c)(6), and 6427(e)(5)(B) are
each amended by striking ``December 31, 2008'' and inserting ``December
31, 2010''.
(b) Uniform Treatment of Diesel Produced From Biomass.--Paragraph
(3) of section 40A(f) is amended--
(1) by striking ``diesel fuel'' and inserting ``liquid
fuel'',
(2) by striking ``using a thermal depolymerization
process'', and
(3) by striking ``or D396'' in subparagraph (B) and
inserting ``or other equivalent standard approved by the
Secretary for fuels to be used in diesel-powered highway
vehicles''.
(c) Coproduction of Renewable Diesel With Petroleum Feedstock.--
(1) In general.--Paragraph (3) of section 40A(f) (defining
renewable diesel) is amended by adding at the end the following
flush sentence:
``Such term does not include any fuel derived from coprocessing
biomass with a feedstock which is not biomass. For purposes of
this paragraph, the term `biomass' has the meaning given such
term by section 45K(c)(3).''.
(2) Conforming amendment.--Paragraph (3) of section 40A(f)
is amended by striking ``(as defined in section 45K(c)(3))''.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
fuel produced, and sold or used, after December 31, 2008.
(2) Coproduction of renewable diesel with petroleum
feedstock.--The amendments made by subsection (c) shall apply
to fuel produced, and sold or used, after February 13, 2008.
SEC. 242. CLARIFICATION THAT CREDITS FOR FUEL ARE DESIGNED TO PROVIDE
AN INCENTIVE FOR UNITED STATES PRODUCTION.
(a) Biodiesel Fuels Credit.--Paragraph (5) of section 40A(d), as
added by subsection (c), is amended to read as follows:
``(5) Limitation to biodiesel with connection to the united
states.--No credit shall be determined under this section with
respect to any biodiesel unless--
``(A) such biodiesel is produced in the United
States for use as a fuel in the United States, and
``(B) the taxpayer obtains a certification (in such
form and manner as prescribed by the Secretary) from
the producer of the biodiesel which identifies the
product produced and the location of such production.
For purposes of this paragraph, the term `United States'
includes any possession of the United States.''.
(b) Excise Tax Credit.--Paragraph (2) of section 6426(h), as added
by subsection (c), is amended to read as follows:
``(2) Biodiesel and alternative fuels.--No credit shall be
determined under this section with respect to any biodiesel or
alternative fuel unless--
``(A) such biodiesel or alternative fuel is
produced in the United States for use as a fuel in the
United States, and
``(B) the taxpayer obtains a certification (in such
form and manner as prescribed by the Secretary) from
the producer of such biodiesel or alternative fuel
which identifies the product produced and the location
of such production.''.
(c) Provisions Clarifying Treatment of Fuels With No Nexus to the
United States.--
(1) Alcohol fuels credit.--Subsection (d) of section 40 is
amended by adding at the end the following new paragraph:
``(6) Limitation to alcohol with connection to the united
states.--No credit shall be determined under this section with
respect to any alcohol which is produced outside the United
States for use as a fuel outside the United States. For
purposes of this paragraph, the term `United States' includes
any possession of the United States.''.
(2) Biodiesel fuels credit.--Subsection (d) of section 40A
is amended by adding at the end the following new paragraph:
``(5) Limitation to biodiesel with connection to the united
states.--No credit shall be determined under this section with
respect to any biodiesel which is produced outside the United
States for use as a fuel outside the United States. For
purposes of this paragraph, the term `United States' includes
any possession of the United States.''.
(3) Excise tax credit.--
(A) In general.--Section 6426 is amended by adding
at the end the following new subsection:
``(h) Limitation to Fuels With Connection to the United States.--
``(1) Alcohol.--No credit shall be determined under this
section with respect to any alcohol which is produced outside
the United States for use as a fuel outside the United States.
``(2) Biodiesel and alternative fuels.--No credit shall be
determined under this section with respect to any biodiesel or
alternative fuel which is produced outside the United States
for use as a fuel outside the United States.
For purposes of this subsection, the term `United States' includes any
possession of the United States.''.
(B) Conforming amendment.--Subsection (e) of
section 6427 is amended by redesignating paragraph (5)
as paragraph (6) and by inserting after paragraph (4)
the following new paragraph:
``(5) Limitation to fuels with connection to the united
states.--No amount shall be payable under paragraph (1) or (2)
with respect to any mixture or alternative fuel if credit is
not allowed with respect to such mixture or alternative fuel by
reason of section 6426(h).''.
(d) Effective Date.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply to fuel produced,
and sold or used, after December 31, 2008.
(2) Provisions clarifying treatment of fuels with no nexus
to the united states.--
(A) In general.--Except as otherwise provided in
this paragraph, the amendments made by subsection (c)
shall take effect as if included in section 301 of the
American Jobs Creation Act of 2004.
(B) Alternative fuel credits.--So much of the
amendments made by subsection (c) as relate to the
alternative fuel credit or the alternative fuel mixture
credit shall take effect as if included in section
11113 of the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users.
(C) Renewable diesel.--So much of the amendments
made by subsection (c) as relate to renewable diesel
shall take effect as if included in section 1346 of the
Energy Policy Act of 2005.
SEC. 243. CREDIT FOR PRODUCTION OF CELLULOSIC ALCOHOL.
(a) In General.--Subsection (b) of section 40 is amended by
redesignating paragraph (5) as paragraph (6) and by inserting after
paragraph (4) the following new paragraph:
``(5) Cellulosic alcohol fuel producer credit.--
``(A) In general.--The cellulosic alcohol fuel
producer credit of any cellulosic alcohol fuel producer
for any taxable year is 50 cents for each gallon of
qualified cellulosic fuel production of such producer.
``(B) Qualified cellulosic fuel production.--For
purposes of this paragraph, the term `qualified
cellulosic fuel production' means any cellulosic
alcohol which is produced by a cellulosic alcohol fuel
producer, and which during the taxable year--
``(i) is sold by such producer 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 alcohol at
retail to another person and places
such alcohol in the fuel tank of such
other person, or
``(ii) is used or sold by such producer for
any purpose described in clause (i).
``(C) Cellulosic alcohol.--For purposes of this
paragraph, the term `cellulosic alcohol' means any
alcohol which--
``(i) is produced in the United States for
use as a fuel in the United States, and
``(ii) is derived from any lignocellulosic
or hemicellulosic matter that is available on a
renewable or recurring basis.
For purposes of this subparagraph, the term `United
States' includes any possession of the United States.
``(D) Cellulosic alcohol fuel producer.--For
purposes of this paragraph, the term `cellulosic
alcohol fuel producer' means any person who produces
cellulosic alcohol in a trade or business and is
registered with the Secretary as a cellulosic alcohol
fuel producer.
``(E) Additional distillation excluded.--The
qualified cellulosic fuel production of any producer
for any taxable year shall not include any alcohol
which is purchased by the producer and with respect to
which such producer increases the proof of the alcohol
by additional distillation.''.
(b) Conforming Amendments.--
(1) Subsection (a) of section 40 is amended by striking
``plus'' at the end of paragraph (1), by striking ``plus'' at
the end of paragraph (2), by striking the period at the end of
paragraph (3) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(4) in the case of a cellulosic alcohol fuel producer,
the cellulosic alcohol fuel producer credit.''.
(2) Clause (ii) of section 40(d)(3)(C) is amended by
striking ``subsection (b)(4)(B)'' and inserting ``paragraph
(4)(B) or (5)(B) of subsection (b)''.
(c) Effective Date.--The amendments made by this section shall
apply to alcohol produced after December 31, 2008.
SEC. 244. EXTENSION FOR CREDIT FOR ALTERNATIVE FUELS AND MIXTURES
DERIVED FROM COAL (INCLUDING PEAT) THROUGH THE FISCHER-
TROPSCH PROCESS.
(a) In General.--Subsections (d)(4) and (e)(3) of section 6426 of
the Internal Revenue Code of 1986 (relating to termination of credits
for alternative fuels and mixtures) are each amended by inserting ``and
September 30, 2020, in the case of any sale or use involving any liquid
fuel derived from coal (including peat) through the Fischer-Tropsch
process'' after ``hydrogen''.
(b) Fuels Not Used for Taxable Purposes.--
(1) In general.--Paragraph (5) of section 6427(e) of such
Code (relating to termination) is amended by striking ``and''
at the end of subparagraph (C), by striking the period at the
end of subparagraph (D) and inserting ``, and'', and by
inserting after subparagraph (D) the following new
subparagraph:
``(E) any alternative fuel or alternative fuel
mixture (as so defined) involving fuel derived from
coal (including peat) through the Fischer-Tropsch
process sold or used after September 30, 2020.''.
(2) Conforming amendment.--Section 6427(e)(5)(C) is amended
by striking ``subparagraph (D)'' and inserting ``subparagraphs
(D) and (E)''.
(c) Effective Date.--The amendments made by this section shall
apply to any sale or use for any period after September 30, 2009.
PART 3--OTHER CONSERVATION PROVISIONS
SEC. 251. QUALIFIED ENERGY CONSERVATION BONDS.
(a) In General.--Subpart I of part IV of subchapter A of chapter 1,
as added by section 104, is amended by adding at the end the following
new section:
``SEC. 54C. QUALIFIED ENERGY CONSERVATION BONDS.
``(a) Qualified Energy Conservation Bond.--For purposes of this
subchapter, the term `qualified energy conservation bond' means any
bond issued as part of an issue if--
``(1) 100 percent of the available project proceeds of such
issue are to be used for one or more qualified conservation
purposes,
``(2) the bond is issued by a State or local government,
and
``(3) the issuer designates such bond for purposes of this
section.
``(b) Limitation on Amount of Bonds Designated.--The maximum
aggregate face amount of bonds which may be designated under subsection
(a) by any issuer shall not exceed the limitation amount allocated to
such issuer under subsection (d).
``(c) National Limitation on Amount of Bonds Designated.--There is
a national qualified energy conservation bond limitation of
$3,600,000,000.
``(d) Allocations.--
``(1) In general.--The limitation applicable under
subsection (c) shall be allocated by the Secretary among the
States in proportion to the population of the States.
``(2) Allocations to largest local governments.--
``(A) In general.--In the case of any State in
which there is a large local government, each such
local government shall be allocated a portion of such
State's allocation which bears the same ratio to the
State's allocation (determined without regard to this
subparagraph) as the population of such large local
government bears to the population of such State.
``(B) Allocation of unused limitation to state.--
The amount allocated under this subsection to a large
local government may be reallocated by such local
government to the State in which such local government
is located.
``(C) Large local government.--For purposes of this
section, the term `large local government' means any
municipality or county if such municipality or county
has a population of 100,000 or more.
``(3) Allocation to issuers; restriction on private
activity bonds.--Any allocation under this subsection to a
State or large local government shall be allocated by such
State or large local government to issuers within the State in
a manner that results in not less than 70 percent of the
allocation to such State or large local government being used
to designate bonds which are not private activity bonds.
``(e) Qualified Conservation Purpose.--For purposes of this
section--
``(1) In general.--The term `qualified conservation
purpose' means any of the following:
``(A) Capital expenditures incurred for purposes
of--
``(i) reducing energy consumption in
publicly-owned buildings by at least 20
percent,
``(ii) implementing green community
programs,
``(iii) rural development involving the
production of electricity from renewable energy
resources, or
``(iv) any qualified facility (as
determined under section 45(d) without regard
to paragraphs (8) and (10) thereof and without
regard to any placed in service date).
``(B) Expenditures with respect to research
facilities, and research grants, to support research
in--
``(i) development of cellulosic ethanol or
other nonfossil fuels,
``(ii) technologies for the capture and
sequestration of carbon dioxide produced
through the use of fossil fuels,
``(iii) increasing the efficiency of
existing technologies for producing nonfossil
fuels,
``(iv) automobile battery technologies and
other technologies to reduce fossil fuel
consumption in transportation, or
``(v) technologies to reduce energy use in
buildings.
``(C) Mass commuting facilities and related
facilities that reduce the consumption of energy,
including expenditures to reduce pollution from
vehicles used for mass commuting.
``(D) Demonstration projects designed to promote
the commercialization of--
``(i) green building technology,
``(ii) conversion of agricultural waste for
use in the production of fuel or otherwise,
``(iii) advanced battery manufacturing
technologies,
``(iv) technologies to reduce peak use of
electricity, or
``(v) technologies for the capture and
sequestration of carbon dioxide emitted from
combusting fossil fuels in order to produce
electricity.
``(E) Public education campaigns to promote energy
efficiency.
``(2) Special rules for private activity bonds.--For
purposes of this section, in the case of any private activity
bond, the term `qualified conservation purposes' shall not
include any expenditure which is not a capital expenditure.
``(f) Population.--
``(1) In general.--The population of any State or local
government shall be determined for purposes of this section as
provided in section 146(j) for the calendar year which includes
the date of the enactment of this section.
``(2) Special rule for counties.--In determining the
population of any county for purposes of this section, any
population of such county which is taken into account in
determining the population of any municipality which is a large
local government shall not be taken into account in determining
the population of such county.
``(g) Application to Indian Tribal Governments.--An Indian tribal
government shall be treated for purposes of this section in the same
manner as a large local government, except that--
``(1) an Indian tribal government shall be treated for
purposes of subsection (d) as located within a State to the
extent of so much of the population of such government as
resides within such State, and
``(2) any bond issued by an Indian tribal government shall
be treated as a qualified energy conservation bond only if
issued as part of an issue the available project proceeds of
which are used for purposes for which such Indian tribal
government could issue bonds to which section 103(a)
applies.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 54A(d), as added by section
104, is amended to read as follows:
``(1) Qualified tax credit bond.--The term `qualified tax
credit bond' means--
``(A) a new clean renewable energy bond, or
``(B) a qualified energy conservation bond,
which is part of an issue that meets requirements of paragraphs
(2), (3), (4), (5), and (6).''.
(2) Subparagraph (C) of section 54A(d)(2), as added by
section 104, is amended to read as follows:
``(C) Qualified purpose.--For purposes of this
paragraph, the term `qualified purpose' means--
``(i) in the case of a new clean renewable
energy bond, a purpose specified in section
54B(a)(1), and
``(ii) in the case of a qualified energy
conservation bond, a purpose specified in
section 54C(a)(1).''.
(3) The table of sections for subpart I of part IV of
subchapter A of chapter 1 is amended by adding at the end the
following new item:
``Sec. 54C. Qualified energy conservation bonds.''.
(c) Effective Date.--The amendments made by this section shall
apply to obligations issued after the date of the enactment of this
Act.
SEC. 252. EXTENSION AND MODIFICATION OF CREDIT FOR NONBUSINESS ENERGY
PROPERTY.
(a) Extension of Credit.--Section 25C(g) (relating to termination)
is amended by striking ``December 31, 2007'' and inserting ``December
31, 2009''.
(b) Qualified Biomass Fuel Property.--
(1) In general.--Section 25C(d)(3) is amended--
(A) by striking ``and'' at the end of subparagraph
(D),
(B) by striking the period at the end of
subparagraph (E) and inserting ``, and'', and
(C) by adding at the end the following new
subparagraph:
``(F) a stove which uses the burning of biomass
fuel to heat a dwelling unit located in the United
States and used as a residence by the taxpayer, or to
heat water for use in such a dwelling unit, and which
has a thermal efficiency rating of at least 75
percent.''.
(2) Biomass fuel.--Section 25C(d) (relating to residential
energy property expenditures) is amended by adding at the end
the following new paragraph:
``(6) Biomass fuel.--The term `biomass fuel' means any
plant-derived fuel available on a renewable or recurring basis,
including agricultural crops and trees, wood and wood waste and
residues (including wood pellets), plants (including aquatic
plants), grasses, residues, and fibers.''.
(c) Coordination With Credit for Qualified Geothermal Heat pump
Property Expenditures.--
(1) In general.--Paragraph (3) of section 25C(d) is amended
by striking subparagraph (C) and by redesignating subparagraphs
(D) and (E) as subparagraphs (C) and (D), respectively.
(2) Conforming amendment.--Subparagraph (C) of section
25C(d)(2) is amended to read as follows:
``(C) Requirements and standards for air
conditioners and heat pumps.--The standards and
requirements prescribed by the Secretary under
subparagraph (B) with respect to the energy efficiency
ratio (EER) for central air conditioners and electric
heat pumps--
``(i) shall require measurements to be
based on published data which is tested by
manufacturers at 95 degrees Fahrenheit, and
``(ii) may be based on the certified data
of the Air Conditioning and Refrigeration
Institute that are prepared in partnership with
the Consortium for Energy Efficiency.''.
(d) Effective Date.--The amendments made this section shall apply
to expenditures made after December 31, 2007.
SEC. 253. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
Subsection (h) of section 179D (relating to termination) is amended
by striking ``December 31, 2008'' and inserting ``December 31, 2013''.
SEC. 254. MODIFICATIONS OF ENERGY EFFICIENT APPLIANCE CREDIT FOR
APPLIANCES PRODUCED AFTER 2007.
(a) In General.--Subsection (b) of section 45M (relating to
applicable amount) is amended to read as follows:
``(b) Applicable Amount.--For purposes of subsection (a)--
``(1) Dishwashers.--The applicable amount is--
``(A) $45 in the case of a dishwasher which is
manufactured in calendar year 2008 or 2009 and which
uses no more than 324 kilowatt hours per year and 5.8
gallons per cycle, and
``(B) $75 in the case of a dishwasher which is
manufactured in calendar year 2008, 2009, or 2010 and
which uses no more than 307 kilowatt hours per year and
5.0 gallons per cycle (5.5 gallons per cycle for
dishwashers designed for greater than 12 place
settings).
``(2) Clothes washers.--The applicable amount is--
``(A) $75 in the case of a residential top-loading
clothes washer manufactured in calendar year 2008 which
meets or exceeds a 1.72 modified energy factor and does
not exceed a 8.0 water consumption factor,
``(B) $125 in the case of a residential top-loading
clothes washer manufactured in calendar year 2008 or
2009 which meets or exceeds a 1.8 modified energy
factor and does not exceed a 7.5 water consumption
factor,
``(C) $150 in the case of a residential or
commercial clothes washer manufactured in calendar year
2008, 2009, or 2010 which meets or exceeds 2.0 modified
energy factor and does not exceed a 6.0 water
consumption factor, and
``(D) $250 in the case of a residential or
commercial clothes washer manufactured in calendar year
2008, 2009, or 2010 which meets or exceeds 2.2 modified
energy factor and does not exceed a 4.5 water
consumption factor.
``(3) Refrigerators.--The applicable amount is--
``(A) $50 in the case of a refrigerator which is
manufactured in calendar year 2008, and consumes at
least 20 percent but not more than 22.9 percent less
kilowatt hours per year than the 2001 energy
conservation standards,
``(B) $75 in the case of a refrigerator which is
manufactured in calendar year 2008 or 2009, and
consumes at least 23 percent but no more than 24.9
percent less kilowatt hours per year than the 2001
energy conservation standards,
``(C) $100 in the case of a refrigerator which is
manufactured in calendar year 2008, 2009, or 2010, and
consumes at least 25 percent but not more than 29.9
percent less kilowatt hours per year than the 2001
energy conservation standards, and
``(D) $200 in the case of a refrigerator
manufactured in calendar year 2008, 2009, or 2010 and
which consumes at least 30 percent less energy than the
2001 energy conservation standards.''.
(b) Eligible Production.--
(1) Similar treatment for all appliances.--Subsection (c)
of section 45M (relating to eligible production) is amended--
(A) by striking paragraph (2),
(B) by striking ``(1) In general'' and all that
follows through ``the eligible'' and inserting ``The
eligible'', and
(C) by moving the text of such subsection in line
with the subsection heading and redesignating
subparagraphs (A) and (B) as paragraphs (1) and (2),
respectively.
(2) Modification of base period.--Paragraph (2) of section
45M(c), as amended by paragraph (1) of this section, is amended
by striking ``3-calendar year'' and inserting ``2-calendar
year''.
(c) Types of Energy Efficient Appliances.--Subsection (d) of
section 45M (defining types of energy efficient appliances) is amended
to read as follows:
``(d) Types of Energy Efficient Appliance.--For purposes of this
section, the types of energy efficient appliances are--
``(1) dishwashers described in subsection (b)(1),
``(2) clothes washers described in subsection (b)(2), and
``(3) refrigerators described in subsection (b)(3).''.
(d) Aggregate Credit Amount Allowed.--
(1) Increase in limit.--Paragraph (1) of section 45M(e)
(relating to aggregate credit amount allowed) is amended to
read as follows:
``(1) Aggregate credit amount allowed.--The aggregate
amount of credit allowed under subsection (a) with respect to a
taxpayer for any taxable year shall not exceed $75,000,000
reduced by the amount of the credit allowed under subsection
(a) to the taxpayer (or any predecessor) for all prior taxable
years beginning after December 31, 2007.''.
(2) Exception for certain refrigerator and clothes
washers.--Paragraph (2) of section 45M(e) is amended to read as
follows:
``(2) Amount allowed for certain refrigerators and clothes
washers.--Refrigerators described in subsection (b)(3)(D) and
clothes washers described in subsection (b)(2)(D) shall not be
taken into account under paragraph (1).''.
(e) Qualified Energy Efficient Appliances.--
(1) In general.--Paragraph (1) of section 45M(f) (defining
qualified energy efficient appliance) is amended to read as
follows:
``(1) Qualified energy efficient appliance.--The term
`qualified energy efficient appliance' means--
``(A) any dishwasher described in subsection
(b)(1),
``(B) any clothes washer described in subsection
(b)(2), and
``(C) any refrigerator described in subsection
(b)(3).''.
(2) Clothes washer.--Section 45M(f)(3) (defining clothes
washer) is amended by inserting ``commercial'' before
``residential'' the second place it appears.
(3) Top-loading clothes washer.--Subsection (f) of section
45M (relating to definitions) is amended by redesignating
paragraphs (4), (5), (6), and (7) as paragraphs (5), (6), (7),
and (8), respectively, and by inserting after paragraph (3) the
following new paragraph:
``(4) Top-loading clothes washer.--The term `top-loading
clothes washer' means a clothes washer which has the clothes
container compartment access located on the top of the machine
and which operates on a vertical axis.''.
(4) Replacement of energy factor.--Section 45M(f)(6), as
redesignated by paragraph (3), is amended to read as follows:
``(6) Modified energy factor.--The term `modified energy
factor' means the modified energy factor established by the
Department of Energy for compliance with the Federal energy
conservation standard.''.
(5) Gallons per cycle; water consumption factor.--Section
45M(f) (relating to definitions), as amended by paragraph (3),
is amended by adding at the end the following:
``(9) Gallons per cycle.--The term `gallons per cycle'
means, with respect to a dishwasher, the amount of water,
expressed in gallons, required to complete a normal cycle of a
dishwasher.
``(10) Water consumption factor.--The term `water
consumption factor' means, with respect to a clothes washer,
the quotient of the total weighted per-cycle water consumption
divided by the cubic foot (or liter) capacity of the clothes
washer.''.
(f) Effective Date.--The amendments made by this section shall
apply to appliances produced after December 31, 2007.
SEC. 255. FIVE-YEAR APPLICABLE RECOVERY PERIOD FOR DEPRECIATION OF
QUALIFIED ENERGY MANAGEMENT DEVICES.
(a) In General.--Section 168(e)(3)(B) (relating to 5-year property)
is amended by striking ``and'' at the end of clause (v), by striking
the period at the end of clause (vi) and inserting ``, and'', and by
inserting after clause (vi) the following new clause:
``(vii) any qualified energy management
device.''.
(b) Definition of Qualified Energy Management Device.--Section
168(i) (relating to definitions and special rules) is amended by
inserting at the end the following new paragraph:
``(18) Qualified energy management device.--
``(A) In general.--The term `qualified energy
management device' means any energy management device
which is installed on real property of a customer of
the taxpayer and is placed in service by a taxpayer
who--
``(i) is a supplier of electric energy or a
provider of electric energy services, and
``(ii) provides all commercial and
residential customers of such supplier or
provider with net metering upon the request of
such customer.
``(B) Energy management device.--For purposes of
subparagraph (A), the term `energy management device'
means any time-based meter and related communication
equipment which is capable of being used by the
taxpayer as part of a system that--
``(i) measures and records electricity
usage data on a time-differentiated basis in at
least 24 separate time segments per day,
``(ii) provides for the exchange of
information between supplier or provider and
the customer's energy management device in
support of time-based rates or other forms of
demand response, and
``(iii) provides data to such supplier or
provider so that the supplier or provider can
provide energy usage information to customers
electronically.
``(C) Net metering.--For purposes of subparagraph
(A), the term `net metering' means allowing customers a
credit for providing electricity to the supplier or
provider.''.
(c) Effective Date.--The amendments made by this section shall
apply to property placed in service after the date of the enactment of
this Act.
SEC. 256. CLARIFICATION OF ELIGIBILITY FOR CERTAIN FUELS CREDITS FOR
FUEL WITH INSUFFICIENT NEXUS TO THE UNITED STATES.
(a) In General.--
(1) Alcohol credit.--Subsection (d) of section 40 is
amended by adding at the end the following new paragraph:
``(6) Limitation to alcohol with connection to the united
states.--
``(A) Alcohol credit.--No alcohol credit shall be
determined under this section with respect to any
alcohol unless such alcohol is produced in the United
States for consumption in the United States or entered
into the United States for consumption in the United
States.
``(B) Alcohol mixture credit.--No alcohol mixture
credit shall be determined under this section with
respect to any mixture unless such mixture is produced
in the United States for consumption in the United
States or entered into the United States for
consumption in the United States.
``(C) No credits for alcohol destined for export.--
No credit (other than the small ethanol producer
credit) shall be determined under this section with
respect to any mixture or alcohol if such mixture or
alcohol is destined for export from the United States
(as determined by the Secretary).
``(D) Special rule for small producer credits.--No
small ethanol producer credit, small cellulosic alcohol
producer credit, or small fossil free alcohol producer
credit shall be determined under this section with
respect to any alcohol unless such alcohol is produced
in the United States.''.
(2) Biodiesel credit.--Subsection (d) of section 40A is
amended by adding at the end the following new paragraph:
``(5) Limitation to biodiesel with connection to the united
states.--
``(A) Biodiesel credit.--No biodiesel credit shall
be determined under this section with respect to any
biodiesel unless such biodiesel is produced in the
United States for consumption in the United States or
is entered into the United States for consumption in
the United States.
``(B) Biodiesel mixture credit.--No biodiesel
mixture credit shall be determined under this section
with respect to any mixture unless such mixture is
produced in the United States for consumption in the
United States or is entered into the United States for
consumption in the United States.
``(C) No credits for biodiesel destined for
export.--No credit (other than the small agri-biodiesel
producer credit) shall be determined under this section
with respect to any mixture or biodiesel if such
mixture or biodiesel is destined for export from the
United States (as determined by the Secretary).
``(D) Special rule for small agri-biodiesel
producer credit.--No small agri-biodiesel producer
credit shall be determined under this section with
respect to any agri-biodiesel unless such agri-
biodiesel is produced in the United States.''.
(3) Excise tax credits.--Section 6426 is amended by adding
at the end the following new subsection:
``(h) Limitation to Fuels With Connection to the United States.--
``(1) Mixture credits.--No credit shall be determined under
this section with respect to any mixture unless such mixture is
produced in the United States for consumption in the United
States or is entered into the United States for consumption in
the United States.
``(2) Alternative fuel credit.--No alternative fuel credit
shall be determined under this section with respect to any
alternative fuel unless such alternative fuel is produced in
the United States for consumption in the United States or is
entered into the United States for consumption in the United
States.
``(3) No credits for fuels destined for export.--No credit
shall be determined under this section with respect to any
mixture or alternative fuel if such mixture or alternative fuel
is destined for export from the United States (as determined by
the Secretary).''.
(4) Payments.--Subsection (e) of section 6427 is amended by
redesignating paragraph (5) as paragraph (6) and by inserting
after paragraph (4) the following new paragraph:
``(5) Limitation to fuels with connection to the united
states.--No amount shall be payable under paragraph (1) or (2)
with respect to any mixture or alternative fuel if credit is
not allowed with respect to such mixture or alternative fuel by
reason of section 6426(h).''.
(b) Effective Date.--The amendments made by this section shall
apply to fuel sold or used after the date of the enactment of this Act.
TITLE III--RESEARCH AND DEVELOPMENT
SEC. 301. BLENDED FUELS.
The Secretary shall carry out a program of research, development,
and demonstration as it relates to the blending of transportation fuels
derived from coal-to-liquids and the blending thereof with
transportation fuels derived from renewable sources, including biomass
(as defined in section 932 of the Energy Policy Act of 2005). The
program shall focus on--
(1) maximizing the fungibility and supply of blended
transportation fuels;
(2) the viability of the blend as a cost competitive
replacement for transportation fuels;
(3) evaluation of the environmental consequences of the
blend on evaporative and exhaust emissions from on-road and
off-road engines;
(4) the quality of the resultant blend at varying
concentrations of biofuel; and
(5) other areas the Secretary considers appropriate.
SEC. 302. CELLULOSIC ETHANOL.
(a) Bioenergy Research Centers.--The Secretary of Energy shall
maintain 4 Bioenergy Research Centers to address scientific problems
that are inherently interdisciplinary and will require scientific
expertise and technological capabilities that span the physical and
biological sciences, including genomics, microbial and plant biology,
analytical chemistry, computational biology and bioinformatics, and
engineering. Universities, national laboratories, nonprofit agencies,
and private firms, as well as consortia comprising of partnerships of
two or more such institutions, will be eligible for funding to
establish and operate a Research Center.
(b) Authorization of Appropriations.--There are authorized to be
appropriated for the Bioenergy Research Centers described in subsection
(a) $25,000,000 for each of the fiscal years 2009 through 2013.
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