110 HR 6001 IH: Renewable Energy and Energy Conservation Tax Act of
U.S. House of Representatives
2008-05-08
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.
(a)This Act may be cited
as the Main Street U.S.A. Energy
Security Act of 2008
.
(b)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.
<enum>I</enum><header>Increase Our
Energy Capacity</header>
<subtitle id="HB2AA8C7AE57A4C4DBF59DB9106F832D"><enum>A</enum><header>Refineries</header>
<section id="H74C53357F8F64DAB88A0E32B2EDD3DD6" section-type="subsequent-section"><enum>101.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote><short-title>Refinery Permit Process
Schedule Act</short-title></quote>.</text>
</section><section id="H857B618D1C7D4718B9CDF6FCEC60DE47"><enum>102.</enum><header>Definitions</header><text display-inline="no-display-inline">For purposes of this subtitle—</text>
<paragraph id="H9E8883A394C74842893395F2B63228F2"><enum>(1)</enum><text>the term
<term>Administrator</term> means the Administrator of the Environmental
Protection Agency;</text>
</paragraph><paragraph id="H4D938DC7B6064A5583C342DE03820401"><enum>(2)</enum><text>the term
<quote>applicant</quote> means a person who is seeking a Federal refinery
authorization;</text>
</paragraph><paragraph id="H99B1492E3CD9478098382483C33D1547"><enum>(3)</enum><text>the term
<quote>biomass</quote> has the meaning given that term in section 932(a)(1) of
the Energy Policy Act of 2005;</text>
</paragraph><paragraph id="HEDCC704142964EA38DB1862242CE853C"><enum>(4)</enum><text>the term
<term>Federal refinery authorization</term>—</text>
<subparagraph id="HC33EEE23F0B24CD989FB93987331CEFE"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="H0A2C704594F247A884CC8D65C9C602B"><enum>(B)</enum><text>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;</text>
</subparagraph></paragraph><paragraph id="H935F7A9E0AA44F4E9CC84FC77F24CF01"><enum>(5)</enum><text>the term
<term>refinery</term> means—</text>
<subparagraph id="H40958F7DE17746D9AAB0F48272611FA2"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="H8242220D08D945EF9C6342BB785EFAD"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="H972F86E21C81486FBA7CE424F9E972D"><enum>(C)</enum><text display-inline="yes-display-inline">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</text>
</subparagraph></paragraph><paragraph id="H3D2CC8BD54894756A6A7D94EE740A299"><enum>(6)</enum><text>the term
<quote>State</quote> means a State, the District of Columbia, the Commonwealth
of Puerto Rico, and any other territory or possession of the United
States.</text>
</paragraph></section><section id="HC2C053FE46D74393BD29152542AF50E0"><enum>103.</enum><header>State
assistance</header>
<subsection id="H55F2B749B143439881C9DB3B744DF2EB"><enum>(a)</enum><header>State
assistance</header><text>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.</text>
</subsection><subsection id="H7BEDB9844CDB440596BC9D7DBCD878DE"><enum>(b)</enum><header>Other
assistance</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section id="H9EC41FCEB6AF46AB88F45CED397EDC27"><enum>104.</enum><header>Refinery
process coordination and procedures</header>
<subsection id="H3D41D3FB4BB94AC5004211ACC3C785A8"><enum>(a)</enum><header>Appointment of
federal coordinator</header>
<paragraph id="H9D76FF75FC554E9998446ED96D74666F"><enum>(1)</enum><header>In
general</header><text>The President shall appoint a Federal coordinator to
perform the responsibilities assigned to the Federal coordinator under this
subtitle.</text>
</paragraph><paragraph id="H2B1E16CBC31F4FBCB031925DB420AD01"><enum>(2)</enum><header>Other
agencies</header><text>Each Federal and State agency or official required to
provide a Federal refinery authorization shall cooperate with the Federal
coordinator.</text>
</paragraph></subsection><subsection id="H8EA7453FC1144E46A2B59DFB2EE9883F"><enum>(b)</enum><header>Federal refinery
authorizations</header>
<paragraph id="H53C3CF367B974E208342F0C6C6A2CE75"><enum>(1)</enum><header>Meeting
participants</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="HC7D19D0EA1B341858EFE5B48358C8FAD"><enum>(2)</enum><header>Memorandum of
agreement</header><text display-inline="yes-display-inline">(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.</text>
<subparagraph id="H04159EEEEB9740D68322B9B9EABB89B9" indent="up1"><enum>(B)</enum><text>Not later than 15 days after
completing the memorandum of agreement, the Federal coordinator shall publish
the memorandum of agreement in the Federal Register.</text>
</subparagraph><subparagraph id="H4DA04018CF10401BAE7FBF96AAB7903B" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph></subsection><subsection id="HB844A7056E8F4987A74D59337D08902E"><enum>(c)</enum><header>Consolidated
record</header><text>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.</text>
</subsection><subsection id="H77A0E8365C3F4E2E966CE2B6A5F1D43"><enum>(d)</enum><header>Remedies</header>
<paragraph id="H1EBC41C9887642C598818C40D8288FA7"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H95C330F6795248C3A41CA8ED4CC74384"><enum>(2)</enum><header>Standing</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H7FC75E361DB944259E53D13FFCF867C9"><enum>(3)</enum><header>Court
action</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H4F21F17AEF9C47709D5602703BAD299B"><enum>(4)</enum><header>Federal
coordinator’s action</header><text>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).</text>
</paragraph><paragraph id="HAA17BB10EE5144F9BD33FEDCEF7D4F81"><enum>(5)</enum><header>Expedited
review</header><text>The Court shall set any civil action brought under this
subsection for expedited consideration.</text>
</paragraph></subsection></section><section id="HF0B74EEB6614479F9D5D042C5D85B602"><enum>105.</enum><header>Designation of
closed military bases</header>
<subsection id="HF350DE5271344626BADC003F5290E438"><enum>(a)</enum><header>Designation
requirement</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H21CEAC301725491890C30936BD16BA97"><enum>(b)</enum><header>Redevelopment
authority</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H1C812CD0B2944B519C695C0241515FE0"><enum>(c)</enum><header>Management and
disposal of real property</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H841AF984CE15427AB082E8CC27F89ECB"><enum>(d)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="HCB39C54E03694E71AB09F5FCF5C3DACF"><enum>(1)</enum><text display-inline="yes-display-inline">the term <quote>base closure law</quote>
means the Defense Base Closure and Realignment Act of 1990 (part A of title
XXIX of <external-xref legal-doc="public-law" parsable-cite="pl/101/510">Public Law 101–510</external-xref>; <external-xref legal-doc="usc" parsable-cite="usc/10/2687">10 U.S.C. 2687</external-xref> note) and title II of the Defense
Authorization Amendments and Base Closure and Realignment Act (Public Law
100–526; <external-xref legal-doc="usc" parsable-cite="usc/10/2687">10 U.S.C. 2687</external-xref> note); and</text>
</paragraph><paragraph id="H7CAFD9F343A5439C0015F101CE003980"><enum>(2)</enum><text display-inline="yes-display-inline">the term <quote>closed military
installation</quote> means a military installation closed or approved for
closure pursuant to a base closure law.</text>
</paragraph></subsection></section><section id="H0E269CB83A78435CA6734F44D9CCD7FC"><enum>106.</enum><header>Savings
clause</header><text display-inline="no-display-inline">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.</text>
</section><section id="H2097CC4E7F0C449E8B19937FDF95C698"><enum>107.</enum><header>Refinery
revitalization repeal</header><text display-inline="no-display-inline">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.</text>
</section></subtitle><subtitle id="H49391E6D0FD64E6381DF878192F9F48E"><enum>B</enum><header>Oil and gas
development on the Coastal Plain of Alaska</header>
<section id="HBF2C1C510E014A718109B3070300C545"><enum>121</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text>
<paragraph id="H2985273D3B2840F58ED67060E5009D4C"><enum>(1)</enum><header>Coastal
Plain</header><text>The term <term>Coastal Plain</term> means that area
described in appendix I to part 37 of title 50, Code of Federal
Regulations.</text>
</paragraph><paragraph id="HD8E4F1513BDA48B6A502AECC611DCD35"><enum>(2)</enum><header>Secretary</header><text>The
term <term>Secretary</term>, except as otherwise provided, means the Secretary
of the Interior or the Secretary’s designee.</text>
</paragraph></section><section id="H79E3EE0A4913428D8517A22B2ECBE9FD"><enum>122.</enum><header>Leasing program
for lands within the Coastal Plain</header>
<subsection id="H8F73AE2C184E438583AAA4F9E89288C6"><enum>(a)</enum><header>In
general</header><text>The Secretary shall take such actions as are
necessary—</text>
<paragraph id="HFB0DEC62E1254F5BA31E2CD2573E2203"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="H1526457187C2444E98964252329D23BB"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="H2A7D6EFA5ED94088AE053BFD9879D3C0"><enum>(b)</enum><header>Repeal</header>
<paragraph id="HDAA4CAF3BBAD4BA798941500495C3EBA"><enum>(1)</enum><header>Repeal</header><text>Section
1003 of the Alaska National Interest Lands Conservation Act of 1980 (16 U.S.C.
3143) is repealed.</text>
</paragraph><paragraph id="H1AB8D2CB7E0741EDBD02154154DD658"><enum>(2)</enum><header>Conforming
amendment</header><text>The table of contents in section 1 of such Act is
amended by striking the item relating to section 1003.</text>
</paragraph></subsection><subsection id="HA9185EE9D2B847BE8D8FFA8854EBA397"><enum>(c)</enum><header>Compliance with
requirements under certain other laws</header>
<paragraph id="H9F3B9B2B52DF46B3823C00094C32E8B0"><enum>(1)</enum><header>Compatibility</header><text>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.</text>
</paragraph><paragraph id="H744679799BFC450F8D5F9EDB7772B779"><enum>(2)</enum><header>Adequacy of the
Department of the Interior’s legislative environmental impact
statement</header><text>The <quote>Final Legislative Environmental Impact
Statement</quote> (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 (<external-xref legal-doc="usc" parsable-cite="usc/42/4332">42 U.S.C. 4332(2)(C)</external-xref>) 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.</text>
</paragraph><paragraph id="H434911C52C9F4EFC9E3619DDC6E0019"><enum>(3)</enum><header>Compliance with
NEPA for other actions</header><text>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.</text>
</paragraph></subsection><subsection id="H91474EF659E44937B0E19200CB974F42"><enum>(d)</enum><header>Relationship to
State and local authority</header><text>Nothing in this subtitle shall be
considered to expand or limit State and local regulatory authority.</text>
</subsection><subsection id="HFCA13527A8FE433DBF534916DBDFA51"><enum>(e)</enum><header>Special
areas</header>
<paragraph id="H3DB68BF4A72D4863ACB900BC4D33A128"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H9B4A438F9A054F4980E759366F4501BD"><enum>(2)</enum><header>Management</header><text>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.</text>
</paragraph><paragraph id="HA47E3FD6534B4BE0A605E3D0C2D62E16"><enum>(3)</enum><header>Exclusion from
leasing or surface occupancy</header><text>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.</text>
</paragraph><paragraph id="H79B0EC86F0EA4234A300219B8695C877"><enum>(4)</enum><header>Directional
drilling</header><text>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.</text>
</paragraph></subsection><subsection id="H580A8AB01F224FA3002494513E909949"><enum>(f)</enum><header>Limitation on
closed areas</header><text>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.</text>
</subsection><subsection id="HA2FDC9C65F774052A24C2F8B358E7B6B"><enum>(g)</enum><header>Regulations</header>
<paragraph id="H970CC38B5CCD4F0EA4A33FED404BBB73"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H52AC1C8E65044877877771204972B339"><enum>(2)</enum><header>Revision of
regulations</header><text>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.</text>
</paragraph></subsection></section><section id="HDCE64A936CB14C66A8B361635367103D"><enum>123.</enum><header>Lease
sales</header>
<subsection id="HE2C5EBC382E4478CA2A05181C99CF383"><enum>(a)</enum><header>In
general</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/30/181">30 U.S.C. 181 et seq.</external-xref>).</text>
</subsection><subsection id="HC3FBFACCDCDD42359DA0D6AB89FEFE66"><enum>(b)</enum><header>Procedures</header><text>The
Secretary shall, by regulation, establish procedures for—</text>
<paragraph id="HF41E177907AB48108DCC00ABEDFF43D"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="HD7666AFD50FE4B2AB58B49BE65E89569"><enum>(2)</enum><text>the holding of
lease sales after such nomination process; and</text>
</paragraph><paragraph id="H3CA2B7C753F1411F9F6650C915C184EF"><enum>(3)</enum><text>public notice of
and comment on designation of areas to be included in, or excluded from, a
lease sale.</text>
</paragraph></subsection><subsection id="H7BC71E001A9544CC9B8951ECA3D5AFD0"><enum>(c)</enum><header>Lease sale
bids</header><text>Bidding for leases under this subtitle shall be by sealed
competitive cash bonus bids.</text>
</subsection><subsection id="HBD5AA5F99F854B9FB01B7FAD64DD907"><enum>(d)</enum><header>Acreage minimum
in first sale</header><text>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.</text>
</subsection><subsection id="HF5A128F137764399B7B66DA0DE7917C5"><enum>(e)</enum><header>Timing of lease
sales</header><text>The Secretary shall—</text>
<paragraph id="H5D65C5B02441467BB8E4C94CF88D2739"><enum>(1)</enum><text>conduct the first
lease sale under this subtitle within 22 months after the date of the enactment
of this Act; and</text>
</paragraph><paragraph id="HBF333CBC4B70412EA2FF34DB5F03C2D"><enum>(2)</enum><text>conduct additional
sales so long as sufficient interest in development exists to warrant, in the
Secretary’s judgment, the conduct of such sales.</text>
</paragraph></subsection></section><section id="H55DF49C43B5B4BA5B335A3024357C5C"><enum>124.</enum><header>Grant of leases
by the Secretary</header>
<subsection id="HA03D0DE4C25945A8B9C90090AC5004FD"><enum>(a)</enum><header>In
general</header><text>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.</text>
</subsection><subsection id="H6E003E1C4CE0404EBCF5478C69DC72DB"><enum>(b)</enum><header>Subsequent
transfers</header><text>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.</text>
</subsection></section><section id="HE9E32B60C6D44022001C39FD46025BAB"><enum>125.</enum><header>Lease terms and
conditions</header><text display-inline="no-display-inline">An oil or gas lease
issued pursuant to this subtitle shall—</text>
<paragraph id="H20CA4E69961C43F3BE4600F2B2FB309"><enum>(1)</enum><text>provide for the
payment of a royalty of not less than 12½ 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;</text>
</paragraph><paragraph id="HA0CC07ACB5664858B2B32E82D1B61556"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="HC36956BC249A45CEA0A34CBC93DCE3D6"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="H4D915E065A76432AADE850BF16C0C574"><enum>(4)</enum><text>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;</text>
</paragraph><paragraph id="HF73AE312939B4E2A8CEB9F059B25605D"><enum>(5)</enum><text>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;</text>
</paragraph><paragraph id="H34E07947FA584C4898C532556B4397BD"><enum>(6)</enum><text>prohibit the
export of oil produced under the lease; and</text>
</paragraph><paragraph id="H7DDA96965D0D4810A8DA34E9E02DC059"><enum>(7)</enum><text>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.</text>
</paragraph></section><section id="H1E93CE30BD134A7D81B3632924CAA5F9"><enum>126.</enum><header>Coastal plain
environmental protection</header>
<subsection id="H3A1BDE8ED0154EFCBC808DA0B908A39B"><enum>(a)</enum><header>No significant
adverse effect standard To govern authorized Coastal Plain
activities</header><text>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—</text>
<paragraph id="H4B3BDA248BBD44DF8589159030B29D98"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="H3F30213B944D44C99CBEF53B92DB781E"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="H9BA07495C7B94F8DB026A2B6077117D7"><enum>(3)</enum><text>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.</text>
</paragraph></subsection><subsection id="HE74F35CCD4984A30AC41003BEE5C528C"><enum>(b)</enum><header>Site-specific
assessment and mitigation</header><text>The Secretary shall also require, with
respect to any proposed drilling and related activities, that—</text>
<paragraph id="H75D8474F8E9F424597BFAF796448EEE"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="H64EF1F19758B49EFB3D8C158E57108CC"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="H1F4B0F3D242C4A3E937DC92FC1DA924F"><enum>(3)</enum><text>the development of
the plan shall occur after consultation with the agency or agencies having
jurisdiction over matters mitigated by the plan.</text>
</paragraph></subsection><subsection id="H16C2B3C721D74B0DAA6CE7BB70406246"><enum>(c)</enum><header>Regulations To
protect coastal plain fish and wildlife resources, subsistence users, and the
environment</header><text>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.</text>
</subsection><subsection id="HE0881615AAAF4DF18F11CF48588232DC"><enum>(d)</enum><header>Compliance with
Federal and State environmental laws and other requirements</header><text>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:</text>
<paragraph id="H5869914631C246DFA1C781D9B676D983"><enum>(1)</enum><text>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 <quote>Final Legislative
Environmental Impact Statement</quote> (April 1987) on the Coastal
Plain.</text>
</paragraph><paragraph id="H15A646084D8A496DBF53324FED6B009E"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="H5B2AD4A3F83348BCA8B1A5D7E6492008"><enum>(3)</enum><text>Design safety and
construction standards for all pipelines and any access and service roads,
that—</text>
<subparagraph id="HBE191656F1E74B85B5CFAC35AB6BB6E"><enum>(A)</enum><text>minimize, to the
maximum extent possible, adverse effects upon the passage of migratory species
such as caribou; and</text>
</subparagraph><subparagraph id="H9F6FFD1DB7FC4025B22FB1DCB3B7F0D0"><enum>(B)</enum><text>minimize adverse
effects upon the flow of surface water by requiring the use of culverts,
bridges, and other structural devices.</text>
</subparagraph></paragraph><paragraph id="H07B3099BF49C4443BF8806059748B9C8"><enum>(4)</enum><text>Prohibitions on
general public access and use on all pipeline access and service roads.</text>
</paragraph><paragraph id="HD39F6243F158496DB73172EDCB38C51"><enum>(5)</enum><text>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.</text>
</paragraph><paragraph id="H79B1D19035614ADBBE342E00DA67C827"><enum>(6)</enum><text>Appropriate
prohibitions or restrictions on access by all modes of transportation.</text>
</paragraph><paragraph id="H31ED4F8ADA0243E7805EFA4889EEEFCA"><enum>(7)</enum><text>Appropriate
prohibitions or restrictions on sand and gravel extraction.</text>
</paragraph><paragraph id="HA8765526028A4F11A59D172CE0532826"><enum>(8)</enum><text>Consolidation of
facility siting.</text>
</paragraph><paragraph id="HD088CF9EB0364E419D3567D355816353"><enum>(9)</enum><text>Appropriate
prohibitions or restrictions on use of explosives.</text>
</paragraph><paragraph id="HB95C4D6F907241069F1DC7BF0538847D"><enum>(10)</enum><text>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.</text>
</paragraph><paragraph id="HBCB324EB5694494C90002CE53C69AE07"><enum>(11)</enum><text>Avoidance or
minimization of air traffic-related disturbance to fish and wildlife.</text>
</paragraph><paragraph id="H23BD537374304ADEB5D20708D6F6C664"><enum>(12)</enum><text>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.</text>
</paragraph><paragraph id="H97A3B2D0FAA640CF93BEC2E939E7EE9"><enum>(13)</enum><text>Fuel storage and
oil spill contingency planning.</text>
</paragraph><paragraph id="H41AB6EED6243433F00E248A09FA5B07B"><enum>(14)</enum><text>Research,
monitoring, and reporting requirements.</text>
</paragraph><paragraph id="HEFE037BD65B447619F20997CCA54CF07"><enum>(15)</enum><text>Field crew
environmental briefings.</text>
</paragraph><paragraph id="HB6273F8329354CEC9842616245898204"><enum>(16)</enum><text>Avoidance of
significant adverse effects upon subsistence hunting, fishing, and trapping by
subsistence users.</text>
</paragraph><paragraph id="HA8A42FD2CC0140D2B51F6EFC5BAFB3F4"><enum>(17)</enum><text>Compliance with
applicable air and water quality standards.</text>
</paragraph><paragraph id="HB5E59D1F7BC940BF9827CCB167F0EB4D"><enum>(18)</enum><text>Appropriate
seasonal and safety zone designations around well sites, within which
subsistence hunting and trapping shall be limited.</text>
</paragraph><paragraph id="H2779316557B042B287D26100A3ADDC47"><enum>(19)</enum><text>Reasonable
stipulations for protection of cultural and archeological resources.</text>
</paragraph><paragraph id="HB6ECC9ABD31B4437BE5F1DFCFAF8B991"><enum>(20)</enum><text>All other
protective environmental stipulations, restrictions, terms, and conditions
deemed necessary by the Secretary.</text>
</paragraph></subsection><subsection id="H000AFD720594463C8616922D1E8F144B"><enum>(e)</enum><header>Considerations</header><text>In
preparing and promulgating regulations, lease terms, conditions, restrictions,
prohibitions, and stipulations under this section, the Secretary shall consider
the following:</text>
<paragraph id="HD5629C86CE254F3EBA00B199724857F9"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="H52F335C77FC6488AB056D596CD2D56D"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="H18531609FEF74A4199777D5128DD826F"><enum>(3)</enum><text>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.</text>
</paragraph></subsection><subsection id="H98361FA5CF8E4F16A041ED9DD237F17B"><enum>(f)</enum><header>Facility
consolidation planning</header>
<paragraph id="HA6B67FFEDE6B491D89929513326E8B98"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H8C9F5992BA6743E19C4D2298B3F5795C"><enum>(2)</enum><header>Objectives</header><text>The
plan shall have the following objectives:</text>
<subparagraph id="HD7FDBB081B25487AA1104D70DEBC897B"><enum>(A)</enum><text>Avoiding
unnecessary duplication of facilities and activities.</text>
</subparagraph><subparagraph id="H865DDE5854FA473FB7679E948BE64B9D"><enum>(B)</enum><text>Encouraging
consolidation of common facilities and activities.</text>
</subparagraph><subparagraph id="HE98299009B394097877D6C45879598B9"><enum>(C)</enum><text>Locating or
confining facilities and activities to areas that will minimize impact on fish
and wildlife, their habitat, and the environment.</text>
</subparagraph><subparagraph id="H35CC319BE9544B97AF6D64AFBE18DD8E"><enum>(D)</enum><text>Utilizing existing
facilities wherever practicable.</text>
</subparagraph><subparagraph id="H6C55C4BBDA644E69B122006B5ECFF036"><enum>(E)</enum><text>Enhancing
compatibility between wildlife values and development activities.</text>
</subparagraph></paragraph></subsection><subsection id="HEDD42BA04F294C1900484DBB16A9AE87"><enum>(g)</enum><header>Access to public
lands</header><text>The Secretary shall—</text>
<paragraph id="H1FBAF4572A604FBBA6B2398B0020B334"><enum>(1)</enum><text>manage public
lands in the Coastal Plain subject to subsections (a) and (b) of section 811 of
the Alaska National Interest Lands Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/16/3121">16 U.S.C. 3121</external-xref>);
and</text>
</paragraph><paragraph id="H8C5151008F8340629B767974DE111932"><enum>(2)</enum><text>ensure that local
residents shall have reasonable access to public lands in the Coastal Plain for
traditional uses.</text>
</paragraph></subsection></section><section id="HB6BB81295C6046F6BA1BD12FA4642CEB"><enum>127.</enum><header>Expedited
judicial review</header>
<subsection id="HC806FAF8D57A41DEB8562F86C3000021"><enum>(a)</enum><header>Filing of
complaint</header>
<paragraph id="HD1494CCFC29F41D68FE8BF649699A45"><enum>(1)</enum><header>Deadline</header><text>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—</text>
<subparagraph id="HC96DEFC84F174A8C8C62AACFF8DA59F"><enum>(A)</enum><text>except as provided
in subparagraph (B), within the 90-day period beginning on the date of the
action being challenged; or</text>
</subparagraph><subparagraph id="HE92FA3BD72A5485200DE009D695ED7A"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="HFC63DAEC87634D029100CA73B914CB5B"><enum>(2)</enum><header>Venue</header><text>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.</text>
</paragraph><paragraph id="HCDB2533EEE574AE68625E5BBA380E9C8"><enum>(3)</enum><header>Limitation on
scope of certain review</header><text>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.</text>
</paragraph></subsection><subsection id="H50652DDC6D1D4934A8C8C4F25894F64B"><enum>(b)</enum><header>Limitation on
other review</header><text>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.</text>
</subsection></section><section id="H2F92B63973EB47F391D340D24C9E848C"><enum>128.</enum><header>Federal and
State distribution of revenues</header>
<subsection id="H1B8D26994E9F4916AB4DDBD2A01F9568"><enum>(a)</enum><header>In
general</header><text>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—</text>
<paragraph id="HE79F55D3EF7F487EA52404B99C575449"><enum>(1)</enum><text>25 percent shall
be paid to the State of Alaska; and</text>
</paragraph><paragraph id="H4BBDDF7F22164D4BA4CA05C581CAD348"><enum>(2)</enum><text>except as
otherwise provided by this Act, the balance shall be deposited into the
Treasury as miscellaneous receipts.</text>
</paragraph></subsection><subsection id="H1B2F1C59FEFB4793997818EF2E98384C"><enum>(b)</enum><header>Payments to
Alaska</header><text>Payments to the State of Alaska under this section shall
be made semiannually.</text>
</subsection></section><section id="H73BB8048E725414AB3F632FDB1D711C9"><enum>129.</enum><header>Rights-of-way
across the Coastal Plain</header>
<subsection id="HE75D9AC5CB1A4C8900D82E1E059709B4"><enum>(a)</enum><header>In
general</header><text>The Secretary shall issue rights-of-way and easements
across the Coastal Plain for the transportation of oil and gas—</text>
<paragraph id="H10BB5940D0964B03A35751C42B92A414"><enum>(1)</enum><text>except as provided
in paragraph (2), under section 28 of the Mineral Leasing Act (<external-xref legal-doc="usc" parsable-cite="usc/30/185">30 U.S.C. 185</external-xref>),
without regard to title XI of the Alaska National Interest Lands Conservation
Act (<external-xref legal-doc="usc" parsable-cite="usc/30/3161">30 U.S.C. 3161 et seq.</external-xref>); and</text>
</paragraph><paragraph id="H62245275AB294F058022FB3D4E76AAF9"><enum>(2)</enum><text>under title XI of
the Alaska National Interest Lands Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/30/3161">30 U.S.C. 3161 et seq.</external-xref>),
for access authorized by sections 1110 and 1111 of that Act (16 U.S.C. 3170 and
3171).</text>
</paragraph></subsection><subsection id="H3A24981A55054812831657C0749B15D8"><enum>(b)</enum><header>Terms and
conditions</header><text>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.</text>
</subsection><subsection id="H6E15470DE4DA459699DCA4C05E900063"><enum>(c)</enum><header>Regulations</header><text>The
Secretary shall include in regulations under section 122(g) provisions granting
rights-of-way and easements described in subsection (a) of this section.</text>
</subsection></section><section id="H40DA1C3BE92E4160A68252DC308181"><enum>130.</enum><header>Conveyance</header><text display-inline="no-display-inline">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—</text>
<paragraph id="H09A9FC33C6C746F500468F8BA2779029"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="HE6B9AC5641ED4F39B869813BF648D025"><enum>(2)</enum><text>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.</text>
</paragraph></section><section id="HBFA86FE0013B456EB9F94DF89E534434"><enum>131.</enum><header>Local
government impact aid and community service assistance</header>
<subsection id="HD97AB84F92A246B491A250CEF7D6B0A3"><enum>(a)</enum><header>Financial
assistance authorized</header>
<paragraph id="HC5F0F407D5264600BD3355A43FCBDC1F"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H8C5A0DF3D1094E66A434806C05005893"><enum>(2)</enum><header>Eligible
entities</header><text>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.</text>
</paragraph></subsection><subsection id="HEFEF204BB86844F4ADF01F4D9FBD8DA5"><enum>(b)</enum><header>Use of
assistance</header><text>Financial assistance under this section may be used
only for—</text>
<paragraph id="HE722F79FA26341D8BFE198D62E735F17"><enum>(1)</enum><text>planning for
mitigation of the potential effects of oil and gas exploration and development
on environmental, social, cultural, recreational, and subsistence
values;</text>
</paragraph><paragraph id="H7E7A73D7D2EB49DF9F297547E7755971"><enum>(2)</enum><text>implementing
mitigation plans and maintaining mitigation projects;</text>
</paragraph><paragraph id="H3568755E36FE48F18667F8903546AA9F"><enum>(3)</enum><text>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</text>
</paragraph><paragraph id="H52E7264471464150A28C34520459F2A0"><enum>(4)</enum><text>establishment of a
coordination office, by the north slope borough, in the City of Kaktovik, which
shall—</text>
<subparagraph id="H69EE9F22A2B54A50B772F663DE75A400"><enum>(A)</enum><text>coordinate with
and advise developers on local conditions, impact, and history of the areas
utilized for development; and</text>
</subparagraph><subparagraph id="H12573C666FAA4E1BB65315FEA37521D6"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="H3D78065437B547E983EC64F53B79F9C3"><enum>(c)</enum><header>Application</header>
<paragraph id="H1999ADE5AF714C01A538B930D76B6FAE"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HD0C8DC9973494A23AAA914A755A37375"><enum>(2)</enum><header>North Slope
Borough communities</header><text>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.</text>
</paragraph><paragraph id="H9A4E4E0F26754038A5385C3C4FC1C1D6"><enum>(3)</enum><header>Application
assistance</header><text>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.</text>
</paragraph></subsection><subsection id="HFFF0910B54A64A1F8B7C4175C5FF9672"><enum>(d)</enum><header>Establishment of
fund</header>
<paragraph id="H0A899FA1C0D14A78BDAB107CEA5EAE3C"><enum>(1)</enum><header>In
general</header><text>There is established in the Treasury the Coastal Plain
Local Government Impact Aid Assistance Fund.</text>
</paragraph><paragraph id="HA610AD18B9FA4EA1823BF37C90F963BD"><enum>(2)</enum><header>Use</header><text>Amounts
in the fund may be used only for providing financial assistance under this
section.</text>
</paragraph><paragraph id="H7618FBB01BD341089246BBA202C667E6"><enum>(3)</enum><header>Deposits</header><text>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.</text>
</paragraph><paragraph id="HE8F60691541A431585941E253DC339F5"><enum>(4)</enum><header>Limitation on
deposits</header><text>The total amount in the fund may not exceed
$11,000,000.</text>
</paragraph><paragraph id="HECE764DCA256438280AE151278721021"><enum>(5)</enum><header>Investment of
balances</header><text>The Secretary of the Treasury shall invest amounts in
the fund in interest bearing government securities.</text>
</paragraph></subsection><subsection id="H0C38F5F9E36847B2A9EC97C2166A35"><enum>(e)</enum><header>Authorization of
appropriations</header><text>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.</text>
</subsection></section></subtitle><subtitle id="H7F756A2CAED24CF194A0AE00F6B6C5A9"><enum>C</enum><header>Opening of Outer
Continental Shelf</header>
<section id="H79C01B0D55F448A294167D24A19AE60" section-type="subsequent-section"><enum>141.</enum><header>Short
title</header><text display-inline="no-display-inline">This subtitle may be
cited as the <quote><short-title>Deep Ocean Energy
Resources Act of 2008</short-title></quote>.</text>
</section><section id="H4F5327A35D9D415CAA455EC13145C408"><enum>142.</enum><header>Policy</header><text display-inline="no-display-inline">It is the policy of the United States
that—</text>
<paragraph id="H36552CBDA1A04AAAA80209001B48CA9C"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="HFD4F1A0481864E3AA979B68F5D4BCB30"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="H722794A027E04240AD4787A873998415"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="H7494C7BAB8B04D64B45100EE006C76A3"><enum>(4)</enum><text>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;</text>
</paragraph><paragraph id="HCE0EA51288364DFCB127D3BF9943271"><enum>(5)</enum><text>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;</text>
</paragraph><paragraph id="HC78D3C314E734F8FA7FF3DE66BBC0E3"><enum>(6)</enum><text>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</text>
</paragraph><paragraph id="HF8B1611E69FB4CCE8195D1277D455923"><enum>(7)</enum><text>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.</text>
</paragraph></section><section id="H974F24D30C1647E2BBFA656DDD4CB4B6"><enum>143.</enum><header>Definitions
under the Outer Continental Shelf Lands Act</header><text display-inline="no-display-inline">Section 2 of the Outer Continental Shelf
Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331</external-xref>) is amended—</text>
<paragraph id="HC09242A36F9A4914AAB27FD5BAEEDD45"><enum>(1)</enum><text>by amending
paragraph (f) to read as follows:</text>
<quoted-block id="H1FF168515C4F4D97AA2833951DFA86B" style="OLC">
<subsection id="H3C0B944C8BF04F75AEE1EF9D03C2EC54"><enum>(f)</enum><text>The term
<term>affected State</term> means the Adjacent
State.</text>
</subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HE20F5486EA534CC68ED4342E26A89D4C"><enum>(2)</enum><text>by striking the
semicolon at the end of each of paragraphs (a) through (o) and inserting a
period;</text>
</paragraph><paragraph id="H2F909243570C41D9A0BFEA8F3157B810"><enum>(3)</enum><text>by striking
<quote>; and</quote> at the end of paragraph (p) and inserting a period;</text>
</paragraph><paragraph id="H57114268B92645B28EBDB01EE8D22B2E"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block id="HC86889E6F3B4458CA2A0B1DCA695AC08" style="OLC">
<subsection id="H5B827749547445C688767B03E92000C7"><enum>(r)</enum><text>The term
<term>Adjacent State</term> 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 <term>State</term> includes Puerto Rico
and the other Territories of the United States.</text>
</subsection><subsection id="HBA7A8C3B62D745148BEBE7ED00DBEB86"><enum>(s)</enum><text>The term
<term>Adjacent Zone</term> 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.</text>
</subsection><subsection id="HB9072D3BA7474EAA83E0BB2249055F29"><enum>(t)</enum><text>The term
<term>miles</term> means statute miles.</text>
</subsection><subsection id="H99EEA6FC3396447D8209ABBC618C4245"><enum>(u)</enum><text>The term
<term>coastline</term> has the same meaning as the term <term>coast line</term>
as defined in section 2(c) of the Submerged Lands Act (43 U.S.C.
1301(c)).</text>
</subsection><subsection id="HDD311179B0D24A6191C9B62288126882"><enum>(v)</enum><text>The term
<term>Neighboring State</term> means a coastal State having a common boundary
at the coastline with the Adjacent
State.</text>
</subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB83DBACF6DE94642B9DD12ECF3008723"><enum>(5)</enum><text>in paragraph (a),
by inserting after <quote>control</quote> the following: <quote>or lying within
the United States exclusive economic zone adjacent to the Territories of the
United States</quote>.</text>
</paragraph></section><section id="H3D9CA37478414287A033F7F4DC0095A6"><enum>144.</enum><header>Determination
of Adjacent Zones and planning areas</header><text display-inline="no-display-inline">Section 4(a)(2)(A) of the Outer Continental
Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1333">43 U.S.C. 1333(a)(2)(A)</external-xref>) is amended in the first sentence by
striking <quote>, and the President</quote> and all that follows through the
end of the sentence and inserting the following: <quote>. 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
<quote>Alaska OCS Region State Adjacent Zone and OCS Planning Areas</quote>,
<quote>Pacific OCS Region State Adjacent Zones and OCS Planning Areas</quote>,
<quote>Gulf of Mexico OCS Region State Adjacent Zones and OCS Planning
Areas</quote>, and <quote>Atlantic OCS Region State Adjacent Zones and OCS
Planning Areas</quote>, all of which are dated September 2005 and on file in
the Office of the Director, Minerals Management Service.</quote>.</text>
</section><section id="H46E8C598B295416ABFD1FA6551116FDE"><enum>145.</enum><header>Administration
of leasing</header><text display-inline="no-display-inline">Section 5 of the
Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1334">43 U.S.C. 1334</external-xref>) is amended by adding at the
end the following:</text>
<quoted-block id="H4FD607DC93D948F79FFC00C3CBADE64" style="OLC">
<subsection id="H8D4B6B3529D146BE8CDABEDAB6EA7C1"><enum>(k)</enum><header>Voluntary Partial
Relinquishment of a Lease</header><text>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.</text>
</subsection><subsection id="H08EAFC26C79A4B8C85007F6DBFDC8890"><enum>(l)</enum><header>Natural Gas
Lease Regulations</header><text>Not later than July 1, 2009, the Secretary
shall publish a final regulation that shall—</text>
<paragraph id="HDB6941F6E920459CB2F56D44F071304E"><enum>(1)</enum><text>establish
procedures for entering into natural gas leases;</text>
</paragraph><paragraph id="H3C83764EA1514591A483DEB95086F580"><enum>(2)</enum><text>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;</text>
</paragraph><paragraph id="H56730D58B4354136ACB98DF537DF009B"><enum>(3)</enum><text>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;</text>
</paragraph><paragraph id="H53119EAF6CBE472896162F1B9F065594"><enum>(4)</enum><text>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;</text>
</paragraph><paragraph id="HE1090D61CE714FAAA0F1CA8B03EF755C"><enum>(5)</enum><text>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</text>
</paragraph><paragraph id="H05B5B3B090A24F53A0DB71E3C26356E0"><enum>(6)</enum><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HA66FE832244E47C4A5754BDF522950F4"><enum>146.</enum><header>Grant of leases
by Secretary</header><text display-inline="no-display-inline">Section 8 of the
Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337</external-xref>) is amended—</text>
<paragraph id="H1794F9F0FACF4539B70063EE21F6EE33"><enum>(1)</enum><text>in subsection
(a)(1) by inserting after the first sentence the following: <quote>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.</quote>;</text>
</paragraph><paragraph id="H1FDBFA5F46B54EBDBB68D4008F172886"><enum>(2)</enum><text>by adding at the
end of subsection (b) the following:</text>
<quoted-block display-inline="no-display-inline" id="H0A43CED4E78F44758CCA035C8CA0C053" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="subsection">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.</quoted-block-continuation-text><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA65B716B3B644CAD98902974356D8242"><enum>(3)</enum><text>by amending
subsection (p)(2)(B) to read as follows:</text>
<quoted-block id="HD53D2378EE88404BAFAEB8424A8B470" style="OLC">
<subparagraph id="H1AD1BE27FAE84E019FA5A0C31EC238C9" indent="up1"><enum>(B)</enum><text>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.</text>
</subparagraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H3C36383B21E24B0C800330803246D718"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H717E7350ACEA4072A2F009BA34A283EB" style="OLC">
<subsection id="H30161E419BDA48A6BF3836FDFA4A143"><enum>(q)</enum><header>Natural Gas
Leases</header>
<paragraph id="H1CD72179A33D4754B27C6F128D21A36"><enum>(1)</enum><header>Right to produce
natural gas</header><text>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.</text>
</paragraph><paragraph id="HC302FEE8F08E4DB398DB3DA412F6259D"><enum>(2)</enum><header>Crude
oil</header><text>A lessee of a natural gas lease may not produce crude oil
from the lease.</text>
</paragraph><paragraph id="HBE96439CBCF64991BEC96EFBD7687FDB"><enum>(3)</enum><header>Estimates of btu
content</header><text>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.</text>
</paragraph><paragraph id="H891AC31493AA4944845C75DCB64CD45C"><enum>(4)</enum><header>Definition of
natural gas</header><text>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.</text>
</paragraph></subsection><subsection id="H9D275D6DFEAA4AF8B60500FD821BF85"><enum>(r)</enum><header>Removal of
Restrictions on Joint Bidding in Certain Areas of the Outer Continental
Shelf</header><text>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 <quote>frontier tracts</quote> or
otherwise <quote>high cost tracts</quote> 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.</text>
</subsection><subsection id="H7F9EC2EDAD3E455B91025C777451A571"><enum>(s)</enum><header>Royalty
Suspension Provisions</header><text>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).</text>
</subsection><subsection id="HDB32E1E15F59481CBA2989FB6C973C6"><enum>(t)</enum><header>Conservation of
Resources Fees</header>
<paragraph id="H2B411124D0BD40B6B9E38CAA268D2423"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="HC617BF034B70421A94A767E5562FF2C6"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph id="H6453133150A54FD993013CB616945215"><enum>(5)</enum><text>by striking
subsection (a)(3)(A) and redesignating the subsequent subparagraphs as
subparagraphs (A) and (B), respectively;</text>
</paragraph><paragraph id="HDA7E3514B3C842E484A479F76EEFEB92"><enum>(6)</enum><text>in subsection
(a)(3)(A) (as so redesignated) by striking <quote>In the Western</quote> and
all that follows through <quote>the Secretary</quote> the first place it
appears and inserting <quote>The Secretary</quote>; and</text>
</paragraph><paragraph id="HB728C923B46D46DBA22E8F83C09F2944"><enum>(7)</enum><text>effective October
1, 2008, in subsection (g)—</text>
<subparagraph id="HA2331853FEAF4FC8A58C14958F74C11C"><enum>(A)</enum><text>by striking all
after <quote>(g)</quote>, except paragraph (3);</text>
</subparagraph><subparagraph id="H45926310793347D286FF665005116C80"><enum>(B)</enum><text>by striking the
last sentence of paragraph (3); and</text>
</subparagraph><subparagraph id="H7C3574FF86234745A1AD7B4B4320033"><enum>(C)</enum><text>by striking
<quote>(3)</quote>.</text>
</subparagraph></paragraph></section><section id="HB5911071B6AA41ABA32EB1C0801CF300"><enum>147.</enum><header>Disposition of
receipts</header><text display-inline="no-display-inline">Section 9 of the
Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1338">43 U.S.C. 1338</external-xref>) is amended—</text>
<paragraph id="H169B87ADB12D4A9FB575A20069ABFB2F"><enum>(1)</enum><text>by designating the
existing text as subsection (a);</text>
</paragraph><paragraph id="H4AF2C87285AB44069D4782D4D653FA1D"><enum>(2)</enum><text>in subsection (a)
(as so designated) by inserting <quote>, if not paid as otherwise provided in
this title</quote> after <quote>receipts</quote>; and</text>
</paragraph><paragraph id="H55A125DA69944FECA746AD295606B0D5"><enum>(3)</enum><text>by adding the
following:</text>
<quoted-block id="H4BD964FC4038462AA1C8046F15CB3744" style="OLC">
<subsection id="H80A91EC03BD34D309D26342FE480496B"><enum>(b)</enum><header>Treatment of OCS
Receipts From Tracts Completely Within 100 Miles of the Coastline</header>
<paragraph id="H462FC96331D1438AB7E0220786DD0036"><enum>(1)</enum><header>Deposit</header><text>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).</text>
</paragraph><paragraph id="HD79254258E0D4DD19EAFBFE5B0A54000"><enum>(2)</enum><header>Phased-in
receipts sharing</header>
<subparagraph id="HBB57E12685A245BBA8208D09060011F"><enum>(A)</enum><text>Beginning October
1, 2008, the Secretary shall share OCS Receipts derived from the following
areas:</text>
<clause id="H09A2288FEB744FA186BFB48DAA932BB7"><enum>(i)</enum><text>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.</text>
</clause><clause id="H50756A10BF2841F6A07D00DFC2C42BCA"><enum>(ii)</enum><text>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.</text>
</clause><clause id="H684EFEF21A4A4969A44DAC55F90583BB"><enum>(iii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="HC4C71436CEEC438883C4B1D8FB506B50"><enum>(B)</enum><text>The Secretary
shall share the following percentages of OCS Receipts from the leases described
in subparagraph (A) derived during the fiscal year indicated:</text>
<clause id="H72ECDCAE20AE42E1002DDE3F7C23058B"><enum>(i)</enum><text>For fiscal year
2009, 4.6 percent.</text>
</clause><clause id="HA2FD11306ECE4DB7BA694C8119D7BD1"><enum>(ii)</enum><text>For fiscal year
2010, 5.95 percent.</text>
</clause><clause id="H8E6AE549870A41DA957D36398D85679E"><enum>(iii)</enum><text>For fiscal year
2011, 6.8 percent.</text>
</clause><clause id="HEB566D4E5E42460BB635513E5ED6D713"><enum>(iv)</enum><text>For fiscal year
2012, 7.65 percent.</text>
</clause><clause id="HE759FC59CE9742BD918DB6FF79D7700"><enum>(v)</enum><text>For
fiscal year 2013, 10.20 percent.</text>
</clause><clause id="HF954F3D8B106441E91B413DC721E5156"><enum>(vi)</enum><text>For fiscal year
2014, 12.75 percent.</text>
</clause><clause id="H2C64D538BFAC431E8B8FFD64DE66BDAA"><enum>(vii)</enum><text>For fiscal year
2015, 15.30 percent.</text>
</clause><clause id="H468D0F6749184908AAB88070D0B54E23"><enum>(viii)</enum><text>For fiscal year
2016, 17.85 percent.</text>
</clause><clause id="H8CAB49E8359846E083C08F00A86C0392"><enum>(ix)</enum><text>For fiscal year
2017, 20.40 percent.</text>
</clause><clause id="H58FEC9F7AF6C4B31B3DE8825918B3F7C"><enum>(x)</enum><text>For fiscal year
2018, 22.95 percent.</text>
</clause><clause id="H9E41340638C842C184F821EEFCA61D87"><enum>(xi)</enum><text>For fiscal year
2019, 25.50 percent.</text>
</clause><clause id="HBE1DA8EE7CFE4441B061AFC7A159D416"><enum>(xii)</enum><text>For fiscal year
2020, 28.05 percent.</text>
</clause><clause id="HF67981A9852E4D77962142EBDA3FE842"><enum>(xiii)</enum><text>For fiscal year
2021, 30.60 percent.</text>
</clause><clause id="H752961E373084DDBB27C60743E63CF47"><enum>(xiv)</enum><text>For fiscal year
2022, 33.15 percent.</text>
</clause><clause id="HF0E166A7ACED4E2081B7F3FF7B0916BE"><enum>(xv)</enum><text>For fiscal year
2023 35.70 percent.</text>
</clause><clause id="H2C65A0F5247C424399ABA4D1F3142CAE"><enum>(xvi)</enum><text>For fiscal year
2024 and each subsequent fiscalyear, 37.5 percent.</text>
</clause></subparagraph><subparagraph id="HE7A4B23A6E964C2793DBDAF62140725"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H25DC29F38BCA46DB8DEECA4F4A2B230"><enum>(3)</enum><header>Immediate
receipts sharing</header><text>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).</text>
</paragraph><paragraph id="HEADF2C41285A4CC7A8C913669718C858"><enum>(4)</enum><header>Receipts sharing
from tracts within 4 marine leagues of any coastline</header>
<subparagraph id="H0A879788ED1B4D579648F638CEB7A5A0"><enum>(A)</enum><header>Areas described
in paragraph <enum-in-header>(2)</enum-in-header></header>
<clause id="H9461B034FC2E48B0B23EF9D8A689A4EF"><enum>(i)</enum><text>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.</text>
</clause><clause id="H66378AC9E8554507A9E0BA46B4826566"><enum>(ii)</enum><text>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).</text>
</clause><clause id="HCB6A61BA5FA14BD892C8ACC9E257D3E5"><enum>(iii)</enum><text>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).</text>
</clause></subparagraph><subparagraph id="H22241C74EEE2483896352F66C46D288B"><enum>(B)</enum><header>Areas not
described in paragraph
<enum-in-header>(2)</enum-in-header></header><text>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).</text>
</subparagraph></paragraph><paragraph id="HF7257D666EBD4B02AA65FC7CDC08EA39"><enum>(5)</enum><header>Allocations</header><text>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:</text>
<subparagraph id="H01511B042234481B80F71C2595BFCA96"><enum>(A)</enum><header>Bonus
bids</header><text>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.</text>
</subparagraph><subparagraph id="H81592EB3D1E34815B1BE803BA16F99B"><enum>(B)</enum><header>Royalties</header><text>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—</text>
<clause id="H7392A82B615D4A768806D4E9885BC3CE"><enum>(i)</enum><text>one-third to the
Adjacent State; and</text>
</clause><clause id="H3D11DAD58E8F41EEB2E82F005670AFB6"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph></subsection><subsection id="HD4BB1652BF5C4574A26C47B350533F33"><enum>(c)</enum><header>Treatment of OCS
Receipts From Tracts Partially or Completely Beyond 100 Miles of the
Coastline</header>
<paragraph id="H3E5FDD12C4004FB79266E547B716869F"><enum>(1)</enum><header>Deposit</header><text>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).</text>
</paragraph><paragraph id="H7B623706CC7F44AE8E7FF96F3321EBDC"><enum>(2)</enum><header>Phased-in
receipts sharing</header>
<subparagraph id="H8CC23BD12B8E40CD8509AEDC22865124"><enum>(A)</enum><text>Beginning October
1, 2008, the Secretary shall share OCS Receipts derived from the following
areas:</text>
<clause id="H29DA064267E347389DB2B97FC03140AD"><enum>(i)</enum><text>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.</text>
</clause><clause id="H5876C11368C14CD788320838E44CCCAA"><enum>(ii)</enum><text>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.</text>
</clause><clause id="HD0EEF22C72B745A6AD879D5558DAEEA"><enum>(iii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="HA955E1F5302F469E8E0824D9B70485E1"><enum>(B)</enum><text>The Secretary
shall share the following percentages of OCS Receipts from the leases described
in subparagraph (A) derived during the fiscal year indicated:</text>
<clause id="H90C455E77C4E48499E6C0827CA67599E"><enum>(i)</enum><text>For fiscal year
2009, 4.6 percent.</text>
</clause><clause id="HA0F1CD20A2F045D9A000F21841D5168E"><enum>(ii)</enum><text>For fiscal year
2010, 5.95 percent.</text>
</clause><clause id="HE06EEFFAE67A4010A7DB6B1928065C27"><enum>(iii)</enum><text>For fiscal year
2011, 6.80 percent.</text>
</clause><clause id="HADAEE44048E64A54B945C06900BD74E2"><enum>(iv)</enum><text>For fiscal year
2012, 7.65 percent.</text>
</clause><clause id="H70FAE129197245C9B89F306D3D73A1F8"><enum>(v)</enum><text>For fiscal year
2013, 10.20 percent.</text>
</clause><clause id="H804280FEC3DB4F8F9B41192B6638F5B"><enum>(vi)</enum><text>For fiscal year
2014, 12.75 percent.</text>
</clause><clause id="H9D779E14DB0B4F54A5804BAD76163F89"><enum>(vii)</enum><text>For fiscal year
2015, 15.30 percent.</text>
</clause><clause id="H712212A70533416F9D71EC81C1D52CCC"><enum>(viii)</enum><text>For fiscal year
2016, 17.85 percent.</text>
</clause><clause id="H6F7E2A7FFD94418A92EA98EE00A78390"><enum>(ix)</enum><text>For fiscal year
2017, 20.40 percent.</text>
</clause><clause id="HC719505D0A3A4B0195CF6CB41852FAEA"><enum>(x)</enum><text>For fiscal year
2018, 22.95 percent.</text>
</clause><clause id="H4610297963FD4042A2EAC79136BC158"><enum>(xi)</enum><text>For fiscal year
2019, 25.50 percent.</text>
</clause><clause id="HDD44D9058EAD474FB4B0B8FCF5716F88"><enum>(xii)</enum><text>For fiscal year
2020, 28.05 percent.</text>
</clause><clause id="H276DBFF59E4E41F78688107000AB382"><enum>(xiii)</enum><text>For fiscal year
2021, 30.60 percent.</text>
</clause><clause id="H459DADAE78044A368BC5231BD01FF33"><enum>(xiv)</enum><text>For fiscal year
2022, 33.15 percent.</text>
</clause><clause id="HE814EE3858574251BF51465487E409BF"><enum>(xv)</enum><text>For fiscal year
2023, 35.70 percent.</text>
</clause><clause id="HA55DC755215B499088F26E24E09C4EFF"><enum>(xvi)</enum><text>For fiscal year
2024 and each subsequent fiscal year, 37.5 percent.</text>
</clause></subparagraph><subparagraph id="H9780DF22F2014E2986E41080E3EE5DFA"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H99EAE412F65245138DDFC941489456B9"><enum>(3)</enum><header>Immediate
receipts sharing</header><text>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.</text>
</paragraph><paragraph id="H379DE6E89548474EA4091EB2D1B68749"><enum>(4)</enum><header>Allocations</header><text>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:</text>
<subparagraph id="H2BC1FF885CE1426794F6CF969C000842"><enum>(A)</enum><header>Bonus
bids</header><text>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.</text>
</subparagraph><subparagraph id="H0C03CAFE820E42C79902F731E003EBC"><enum>(B)</enum><header>Royalties</header><text>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—</text>
<clause id="H968578F31E86416285D88976B94B3B61"><enum>(i)</enum><text>one-third to the
Adjacent State; and</text>
</clause><clause id="HA60EFCF13A5749F3AA18243CE654DBB7"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph></subsection><subsection id="H340060EC099A42A3965CF51E84005F64"><enum>(d)</enum><header>Transmission of
Allocations</header>
<paragraph id="HC135A70896F74313B039DB8910E9A8CC"><enum>(1)</enum><header>In
general</header><text>Not later than 90 days after the end of each fiscal year,
the Secretary shall transmit—</text>
<subparagraph id="H230275E1B6604C2695E0507D007718FD"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="H7EB2DC940B89471D8310C8F87297951"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="H07CD216F05634D0898D79492950308C2"><enum>(C)</enum><text>the remaining
allocations under subsections (b)(5) and (c)(4), together with all accrued
interest thereon.</text>
</subparagraph></paragraph><paragraph id="HEE96C33B5D0149EE8172B683FDF7C97"><enum>(2)</enum><header>Allocations to
coastal county-equivalent political subdivisions</header><text>The Secretary
shall make an initial allocation of the OCS Receipts to be shared under
paragraph (1)(B) as follows:</text>
<subparagraph id="H0A4E679B6692416B8CA024B5B6CE238B"><enum>(A)</enum><text>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.</text>
</subparagraph><subparagraph id="H2881FD88807B496E89A2698E75178400"><enum>(B)</enum><text>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:</text>
<clause id="H45BB3FD8726444849BF6FF88204145C2"><enum>(i)</enum><text>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.</text>
</clause><clause id="HC9C51F6DDD9D46979E5C5511C1B37422"><enum>(ii)</enum><text>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.</text>
</clause><clause id="H775152D8F41D42B9A2EC3EDF5855EA22"><enum>(iii)</enum><text>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.</text>
</clause><clause id="H97033E1C98A04B789D7FCB2719028E91"><enum>(iv)</enum><text>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 <term>outer Continental Shelf oil
and gas activities</term> 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.</text>
</clause></subparagraph></paragraph><paragraph id="H9387F8D6ED0745DAB70027560017D771"><enum>(3)</enum><header>Allocations to
coastal municipal political subdivisions</header><text>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:</text>
<subparagraph id="H1EC769D3DAF64D43ABB3E4C6CBF1176F"><enum>(A)</enum><text>One-third shall be
allocated to the coastal county-equivalent political subdivision.</text>
</subparagraph><subparagraph id="H7783DB327EEA47E282749C93C7C38707"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="H45627DB82DF74EB795A1A63CED8236AC"><enum>(e)</enum><header>Investment of
Deposits</header><text>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.</text>
</subsection><subsection id="HDE02EF91289A41BFBD0076DA8CC0EDA3"><enum>(f)</enum><header>Use of
Funds</header><text>A recipient of funds under this section may use the funds
for one or more of the following:</text>
<paragraph id="H93B07B9277194B5590FE7E956B16D882"><enum>(1)</enum><text>To reduce in-State
college tuition at public institutions of higher learning and otherwise support
public education, including career technical education.</text>
</paragraph><paragraph id="HBA7564BDDF654CE192B64300936970E"><enum>(2)</enum><text>To make
transportation infrastructure improvements.</text>
</paragraph><paragraph id="HA99674C6211C42F0B689BF044CA467D"><enum>(3)</enum><text>To reduce
taxes.</text>
</paragraph><paragraph id="H507663A3827E4BFA936CF7122BBCB110"><enum>(4)</enum><text>To promote, fund,
and provide for—</text>
<subparagraph id="H36D2AB3E5C8A4D1CA468C4F375A0B31B"><enum>(A)</enum><text>coastal or
environmental restoration;</text>
</subparagraph><subparagraph id="H4B7BDF0DE5E640E7958F7CAD947113FE"><enum>(B)</enum><text>fish, wildlife,
and marine life habitat enhancement;</text>
</subparagraph><subparagraph id="H4517AE226F6C4E3390AF012496AD96FD"><enum>(C)</enum><text>waterways
construction and maintenance;</text>
</subparagraph><subparagraph id="H4087DE415C224BECBCA9F2FE079E91D7"><enum>(D)</enum><text>levee construction
and maintenance and shore protection; and</text>
</subparagraph><subparagraph id="H3D276C368A034062AE062F270065F45D"><enum>(E)</enum><text>marine and
oceanographic education and research.</text>
</subparagraph></paragraph><paragraph id="H80B8B7C7D70E441D9DDCB95FF2299478"><enum>(5)</enum><text>To promote, fund,
and provide for—</text>
<subparagraph id="HD987DEE548BF4AD6A5C574B89E180043"><enum>(A)</enum><text>infrastructure
associated with energy production activities conducted on the outer Continental
Shelf;</text>
</subparagraph><subparagraph id="H69ECAD89F28742F1B8AD1B46F46988C5"><enum>(B)</enum><text>energy
demonstration projects;</text>
</subparagraph><subparagraph id="HF58921D9B02549D39B25E7E3973929E3"><enum>(C)</enum><text>supporting
infrastructure for shore-based energy projects;</text>
</subparagraph><subparagraph id="H59C098C5872B43E09C8050DECDC2062D"><enum>(D)</enum><text>State geologic
programs, including geologic mapping and data storage programs, and state
geophysical data acquisition;</text>
</subparagraph><subparagraph id="H5159F989034F4664980096A3C43B6600"><enum>(E)</enum><text>State seismic
monitoring programs, including operation of monitoring stations;</text>
</subparagraph><subparagraph id="H292E693C2C314A7BB27DA8D6C0DA51CE"><enum>(F)</enum><text>development of oil
and gas resources through enhanced recovery techniques;</text>
</subparagraph><subparagraph id="H9560E082B2D74D9D8FE8507C8E509778"><enum>(G)</enum><text>alternative energy
development, including bio fuels, coal-to-liquids, oil shale, tar sands,
geothermal, geopressure, wind, waves, currents, hydro, and other renewable
energy;</text>
</subparagraph><subparagraph id="HA32340B950374D9100E2D63B4211633B"><enum>(H)</enum><text>energy efficiency
and conservation programs; and</text>
</subparagraph><subparagraph id="H4AEAF99521D246E69DD95B5FC3B8A0DB"><enum>(I)</enum><text>front-end
engineering and design for facilities that produce liquid fuels from
hydrocarbons and other biological matter.</text>
</subparagraph></paragraph><paragraph id="HF73865836BB74F7EB231E304E8669EA"><enum>(6)</enum><text>To promote, fund,
and provide for—</text>
<subparagraph id="H36187D3FFE2C42A9ABC210332E4C8D2"><enum>(A)</enum><text>historic
preservation programs and projects;</text>
</subparagraph><subparagraph id="H2280D1345D3B4549ABED648F002C4000"><enum>(B)</enum><text>natural disaster
planning and response; and</text>
</subparagraph><subparagraph id="HD8BA0C6E794F4A888BF9218E7883B9D2"><enum>(C)</enum><text>hurricane and
natural disaster insurance programs.</text>
</subparagraph></paragraph><paragraph id="H5720DD55F9364F3AA2A562B734455129"><enum>(7)</enum><text>For any other
purpose as determined by State law.</text>
</paragraph></subsection><subsection id="H96B41FCC42524822871C16DCCBAD8616"><enum>(g)</enum><header>No Accounting
Required</header><text>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.</text>
</subsection><subsection id="H9AF17AB8EFF0400A8F3BEB35EAD1E5E"><enum>(h)</enum><header>Effect of Future
Laws</header><text>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.</text>
</subsection><subsection id="HBA4A29E01F614502BFF048BD9846F6EF"><enum>(i)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="H11F79334D8434FC793851D7495C72864"><enum>(1)</enum><header>Coastal
county-equivalent political subdivision</header><text>The term <term>coastal
county-equivalent political subdivision</term> 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.</text>
</paragraph><paragraph id="H28930ACCDEE346F6B245C1CB83F7A863"><enum>(2)</enum><header>Coastal
municipal political subdivision</header><text>The term <term>coastal municipal
political subdivision</term> 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.</text>
</paragraph><paragraph id="H10FF526E22694E8C96A8D91A06BD03"><enum>(3)</enum><header>Coastal
population</header><text>The term <term>coastal population</term> means the
population of all coastal county-equivalent political subdivisions, as
determined by the most recent official data of the Census Bureau.</text>
</paragraph><paragraph id="H641262BEEF0D4E7DBD22D5A49F58BDE4"><enum>(4)</enum><header>Coastal
zone</header><text>The term <term>coastal zone</term> 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.</text>
</paragraph><paragraph id="HA4281B8F4A6F490F9017F3ABCD00009D"><enum>(5)</enum><header>Bonus
bids</header><text>The term <term>bonus bids</term> means all funds received by
the Secretary to issue an outer Continental Shelf minerals lease.</text>
</paragraph><paragraph id="H51370D5D09504F3D94E86C2FA44CA25"><enum>(6)</enum><header>Royalties</header><text>The
term <term>royalties</term> 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.</text>
</paragraph><paragraph id="HE6E6FC5CC99C4F94A1861ED452ACE2C3"><enum>(7)</enum><header>Producing
state</header><text>The term <term>producing State</term> means an Adjacent
State having an Adjacent Zone containing leased tracts from which OCS Receipts
were derived.</text>
</paragraph><paragraph id="HAF178365FF4F404BA8A8B02C6E1FFB4D"><enum>(8)</enum><header>OCS
receipts</header><text>The term <term>OCS Receipts</term> means bonus bids,
royalties, and conservation of resources
fees.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H45B77202F229461B853E771CB165DB3F"><enum>148.</enum><header>Reservation of
lands and rights</header><text display-inline="no-display-inline">Section 12 of
the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1341">43 U.S.C. 1341</external-xref>) is amended—</text>
<paragraph id="H777812A7CC364BCC0000400999AA7024"><enum>(1)</enum><text>in subsection (a)
by adding at the end the following: <quote>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.</quote>;</text>
</paragraph><paragraph id="H55707878F4754F5B866EC70016549E05"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H2BBE4BBBFF2E4CDB82396C242B1629CA" style="OLC">
<subsection id="H2EFED3BAC2A14490BBEF16E9B221599B"><enum>(g)</enum><header>Availability for
Leasing Within Certain Areas of the Outer Continental Shelf</header>
<paragraph id="H451C0E040501435C87B7564610C1DCD9"><enum>(1)</enum><header>Prohibition
against leasing</header>
<subparagraph id="HE9AB9F42FB884AEDA7DC4DC2B98121C"><enum>(A)</enum><header>Unavailable for
leasing without state request</header><text>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 <quote>Memorandum on Withdrawal of
Certain Areas of the United States Outer Continental Shelf from Leasing
Disposition</quote>, 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 <quote>Gulf of Mexico OCS Region State Adjacent
Zones and OCS Planning Areas</quote> or the Florida Straits Planning Area as
indicated on the map entitled <quote>Atlantic OCS Region State Adjacent Zones
and OCS Planning Areas</quote>, both of which are dated September 2005 and on
file in the Office of the Director, Minerals Management Service.</text>
</subparagraph><subparagraph id="HE65CFA5FDE6D4F9E8505DE06EFFE4285"><enum>(B)</enum><header>Areas between 50
and 100 miles from the coastline</header><text>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 <quote>Memorandum on
Withdrawal of Certain Areas of the United States Outer Continental Shelf from
Leasing Disposition</quote>, 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 <quote>Gulf
of Mexico OCS Region State Adjacent Zones and OCS Planning Areas</quote> or
within the Florida Straits Planning Area as indicated on the map entitled
<quote>Atlantic OCS Region State Adjacent Zones and OCS Planning Areas</quote>,
both of which are dated September 2005 and on file in the Office of the
Director, Minerals Management Service.</text>
</subparagraph></paragraph><paragraph id="H18160A862D39491198ADDB8E49685334"><enum>(2)</enum><header>Revocation of
withdrawal</header><text>The provisions of the <quote>Memorandum on Withdrawal
of Certain Areas of the United States Outer Continental Shelf from Leasing
Disposition</quote>, 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.</text>
</paragraph><paragraph id="HAB6328CBC98B4BD09CFC78FF153018E"><enum>(3)</enum><header>Petition for
leasing</header>
<subparagraph id="H5ADEA1328B25464D80F0493C3DA06204"><enum>(A)</enum><header>In
general</header><text>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 <quote>Gulf of Mexico OCS Region State Adjacent
Zones and OCS Planning Areas</quote> 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.</text>
</subparagraph><subparagraph id="HD43609F6F12A4C0E83B659C83DD09816"><enum>(B)</enum><header>Limitations on
leasing</header><text>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—</text>
<clause id="H5319533EB95442AAB73457509FF97BE6"><enum>(i)</enum><text>requiring a net
reduction in the number of production platforms;</text>
</clause><clause id="H6F6595575F90476FBD871DEED6181E18"><enum>(ii)</enum><text>requiring a net
increase in the average distance of production platforms from the
coastline;</text>
</clause><clause id="H5981744CFF9A4BFB9610073B191E327C"><enum>(iii)</enum><text>limiting
permanent surface occupancy on new leases to areas that are more than 10 miles
from the coastline;</text>
</clause><clause id="HBFEEDDA690C5456CB4A7BE8D9FAE7500"><enum>(iv)</enum><text>limiting some
tracts to being produced from shore or from platforms located on other tracts;
or</text>
</clause><clause id="HB32E52E15EB24972B2EED6C3BD9C1498"><enum>(v)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="HB40FA3F3EDAB4FE6BFFAF19BE23C0465"><enum>(C)</enum><header>Action by
secretary</header><text>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.</text>
</subparagraph><subparagraph id="HA1DDEB19ADC241CF932CDD44EDEE8AE"><enum>(D)</enum><header>Failure to
act</header><text>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.</text>
</subparagraph><subparagraph id="H50337D94238F4063891556BB649849E2"><enum>(E)</enum><header>Amendment of the
5-year leasing program</header><text>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
<act-name parsable-cite="NEPA69">National Environmental Policy Act of
1969</act-name> to assess the effects of approving the petition shall be
sufficient to amend the 5-Year Leasing Program.</text>
</subparagraph></paragraph></subsection><subsection id="HD212B183303949C3B7C86D6CB065FDA"><enum>(h)</enum><header>Option To Extend
Withdrawal From Leasing Within Certain Areas of the Outer Continental
Shelf</header><text>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 <quote>Gulf of Mexico OCS Region State Adjacent
Zones and OCS Planning Areas</quote> 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.</text>
</subsection><subsection id="H66C2DD97E07A4597B8B87D525CF6754E"><enum>(i)</enum><header>Effect of Other
Laws</header><text>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.</text>
</subsection><subsection id="HE8F6B4123666406DAAED011CA2DA0888"><enum>(j)</enum><header>Prohibition on
Leasing East of the Military Mission Line</header>
<paragraph id="H3FE00E8E38EA481BAA05334BC100D1AF"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="HB7BEA043A3524D26A4EC036712B46F7"><enum>(2)</enum><text>In this subsection,
the term <term>military mission line</term> 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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H6D81264FD701421384484B00AE1DA022"><enum>149.</enum><header>Outer
Continental Shelf Leasing Program</header><text display-inline="no-display-inline">Section 18 of the Outer Continental Shelf
Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1344">43 U.S.C. 1344</external-xref>) is amended—</text>
<paragraph id="H288C447232664640A4CA815101409976"><enum>(1)</enum><text>in subsection (a),
by adding at the end of paragraph (3) the following: <quote>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.</quote>;</text>
</paragraph><paragraph id="H42C2BC62FA9F4314986685A44C889B2F"><enum>(2)</enum><text>in subsection (c),
by striking so much as precedes paragraph (3) and inserting the
following:</text>
<quoted-block id="H2AFF045B2A3641B0BFF5CF3BAFBA680" style="OLC">
<subsection id="HBDD4651C19A8495E008B17C377167C59"><enum>(c)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H19D654E0C3454C5EB8953FFFAC494EB3"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="H30B5E6047C79475683F692BE33E28E07" indent="up1"><enum>(2)</enum><text>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 <act-name parsable-cite="NEPA69">National Environmental Policy
Act of 1969</act-name>. 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.</text>
</paragraph></subsection><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="HB2FE06DDFDC54B4A9E03BBD312002271"><enum>(3)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H0D0EBDE589144DC3B126E6386FC1B3E4" style="OLC">
<subsection id="HA3885F7392904BA9859005416920B2E5"><enum>(i)</enum><header>Projection of
State Adjacent Zone Resources and State and Local Government Shares of OCS
Receipts</header><text>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—</text>
<paragraph id="HE68F0D4303EF4D4881C3DFFFDC4C7E"><enum>(1)</enum><text>provide to each
Adjacent State a current estimate of proven and potential oil and gas resources
located within the State’s Adjacent Zone; and</text>
</paragraph><paragraph id="H5FBF0F3F0EE94BC4A6C82B61A7D63F4F"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H4BEE97ABE45044D8B555B43984378A3"><enum>150.</enum><header>Coordination
with Adjacent States</header><text display-inline="no-display-inline">Section
19 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1345">43 U.S.C. 1345</external-xref>) is amended—</text>
<paragraph id="H402E97AFE4F147EBA7B61A3F504D5A1"><enum>(1)</enum><text>in
subsection (a) in the first sentence by inserting <quote>, for any tract
located within the Adjacent State’s Adjacent Zone,</quote> after
<quote>government</quote>; and</text>
</paragraph><paragraph id="H77104C4DECFE49FEB2A8CF4ECB8364FB"><enum>(2)</enum><text>by adding the
following:</text>
<quoted-block id="HFE20B133A02E4078BC81D2331991E2F" style="OLC">
<subsection id="H90B2DA825D5E4E329280E4D75820586F"><enum>(f)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H2A8F5AC45AD543EEABA1033F7C356323"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="H85C3CCE2C88040C7B45F6D20D19FD9B5" indent="up1"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HF268A5F3ABAA4B329D000006FEC85E22"><enum>151.</enum><header>Environmental
studies</header><text display-inline="no-display-inline">Section 20(d) of the
Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1346">43 U.S.C. 1346</external-xref>) is amended—</text>
<paragraph id="H6A334BC9B12D4FCBB2D33DB3857C11DD"><enum>(1)</enum><text>by inserting
<quote>(1)</quote> after <quote>(d)</quote>; and</text>
</paragraph><paragraph id="H117B64785B094B23ACFCBEE85790C065"><enum>(2)</enum><text>by adding at the
end the following:</text>
<quoted-block id="H9108AEF7C7CF4EF8BB00CFCED922B282" style="OLC">
<paragraph id="HC759AB7FB832425700066F973D927E25" indent="up1"><enum>(2)</enum><text>For all programs, lease sales,
leases, and actions under this Act, the following shall apply regarding the
application of the <act-name parsable-cite="NEPA69">National Environmental
Policy Act of 1969</act-name>:</text>
<subparagraph id="H148E9B78DB3A4862BFA5546DD0042DB"><enum>(A)</enum><text>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.</text>
</subparagraph><subparagraph id="HB6E8123F05EA475BBCCD854405188E24"><enum>(B)</enum><text>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.</text>
</subparagraph><subparagraph id="H8A69AAD65A42451EBBE81391AC749E8E"><enum>(C)</enum><text>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.</text>
</subparagraph><subparagraph id="H8661011D1C964C79A971EB46038D16FE"><enum>(D)</enum><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H430E0FCE600E42F48E9864ACD63A6C"><enum>152.</enum><header>Federal Energy
Natural Resources Enhancement Act of 2008</header>
<subsection id="H40D4382CDD0747A9A747C979F64048E3"><enum>(a)</enum><header>Short
title</header><text display-inline="yes-display-inline">This section may be
cited as the <quote><short-title>Federal Energy Natural
Resources Enhancement Act of 2008</short-title></quote>.</text>
</subsection><subsection id="H3107E1CD20AE4863009767288CCEF3EA"><enum>(b)</enum><header>Findings</header><text>The
Congress finds the following:</text>
<paragraph id="HBA62F2716C3C4F7E89B36400E4643404"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="HA7251501DE2A4A2AA94D2600BDC2AF2"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="H9F9A9538E03649D8B4B517134E6CC869"><enum>(3)</enum><text>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.</text>
</paragraph><paragraph id="HA92A953177E24E2F8CD7F831FD95A5E9"><enum>(4)</enum><text>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.</text>
</paragraph><paragraph id="H38D97A2253F54EDA89CF81A096877968"><enum>(5)</enum><text>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.</text>
</paragraph><paragraph id="H99AEF9C26D6C46F000BD74133053FBDB"><enum>(6)</enum><text>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.</text>
</paragraph></subsection><subsection id="H2327BCE2718943C8B8381F918690C817"><enum>(c)</enum><header>Purposes</header><text>It
is the purpose of this section to—</text>
<paragraph id="H39A3C22387CC4A729175B2E5AD7205E6"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="H68B0CB0B1E3E4E05A54C11887D26C865"><enum>(2)</enum><text>authorize
expenditures for each fiscal year to the Secretary of the Interior and the
States; and</text>
</paragraph><paragraph id="H197817235778485798D6B40703BC06D5"><enum>(3)</enum><text>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—</text>
<subparagraph id="H35DC1AD78DB84B669135718208804B50"><enum>(A)</enum><text>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;</text>
</subparagraph><subparagraph id="H62C16B3AF7D94CFC89E7EA31F6575FAD"><enum>(B)</enum><text>projects to
maintain, improve, or enhance wildlife and fish populations and their habitats
or air, water, or other natural resources, including activities under the
<act-name parsable-cite="ESA">Endangered Species Act of 1973</act-name>;</text>
</subparagraph><subparagraph id="H82D763C151284C2F8DD87173009CBE60"><enum>(C)</enum><text>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</text>
</subparagraph><subparagraph id="HA198A847191F404F927457E15DE56D1E"><enum>(D)</enum><text>projects to teach
young people to live off the land.</text>
</subparagraph></paragraph></subsection><subsection id="H9CED21FC42CF4639B996A8A5D64DF810"><enum>(d)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="HF833D99E5B424B40852718C3B67D6675"><enum>(1)</enum><header>Enhancement
program</header><text>The term <term>Enhancement Program</term> means the
Federal Energy Natural Resources Enhancement Program established by this
section.</text>
</paragraph><paragraph id="H88FC8D9E917D4BB7B0EE645BD71D8845"><enum>(2)</enum><header>State</header><text>The
term <term>State</term> means the Governor of the State.</text>
</paragraph></subsection><subsection id="H4D0B0C7E4E41456D9E0573BA9031029"><enum>(e)</enum><header>Authorization of
Appropriations</header><text>There is authorized to be appropriated to carry
out the Enhancement Program $150,000,000 for each of fiscal years 2009 through
2019.</text>
</subsection><subsection id="H9BE84C66091C41D99BBDAB83E8BCF100"><enum>(f)</enum><header>Establishment of
Federal Energy Natural Resources Enhancement Program</header>
<paragraph id="H354F25A688C243FE9331968300825458"><enum>(1)</enum><header>In
general</header><text>There is established the Federal Energy Natural Resources
Enhancement Program.</text>
</paragraph><paragraph id="H84CE27F684394357880045AA82D0E765"><enum>(2)</enum><header>Payment to
secretary of the interior</header><text>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).</text>
</paragraph><paragraph id="H188BBC65D37445BFAC1B68A147B52227"><enum>(3)</enum><header>Payment to
States</header>
<subparagraph id="H32C0905281144726A2F2D286F63C4C3E"><enum>(A)</enum><header>In
general</header><text>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).</text>
</subparagraph><subparagraph id="HD6A992846E1B482F9E58D3B6FD2BEE22"><enum>(B)</enum><header>Use of payments
by state</header><text>Each State shall use the payments made under this
paragraph only for carrying out projects and programs for the purposes
described in (c)(3).</text>
</subparagraph><subparagraph id="HFD7A157CEFD54C269EDA04C32F066B00"><enum>(C)</enum><header>Encourage use of
private funds by state</header><text>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).</text>
</subparagraph></paragraph></subsection><subsection id="H2CA58D6CB0634849B0EC8931CDE57E91"><enum>(g)</enum><header>Limitation on
Use</header><text>Amounts made available under this section may not be used for
the purchase of any interest in land.</text>
</subsection><subsection id="H80C5BF8BA262479393D5EB1DB9867F91"><enum>(h)</enum><header>Reports to
Congress</header>
<paragraph id="H20C379BEF3934A6B85737D2718293727"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HD7B42A72581D4E068943527314F11480"><enum>(2)</enum><header>Required
information</header><text>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:</text>
<subparagraph id="HC9E7A284E75D429D81F040E6A7195E00"><enum>(A)</enum><text>A summary of
pertinent scientific research and surveys conducted to identify impacts on
wildlife, fish, and other natural resources from energy and mineral
developments.</text>
</subparagraph><subparagraph id="H061006121DE0473C8DA414B1BEC8FD37"><enum>(B)</enum><text>A summary of
projects planned and completed to maintain, improve or enhance wildlife and
fish populations and their habitats or other natural resources.</text>
</subparagraph><subparagraph id="H27E21525875F47D19FB71E85B202942E"><enum>(C)</enum><text>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.</text>
</subparagraph><subparagraph id="HDA59D3E73B7A41CBA47505CBD080F1D6"><enum>(D)</enum><text>A summary of
private (non-Federal) funds used to plan, conduct, and complete the plans and
programs identified in subparagraphs (A) and (B).</text>
</subparagraph></paragraph></subsection></section><section id="HFC42B52445D540F0B71FD51286C234AE"><enum>153.</enum><header>Termination of
effect of laws prohibiting the spending of appropriated funds for certain
purposes</header><text display-inline="no-display-inline">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.</text>
</section><section id="H21134B0624FD455A963B50F4DA275265"><enum>154.</enum><header>Outer
Continental Shelf incompatible use</header>
<subsection id="HBE1F7D742FF94AC080B6FA832F65F197"><enum>(a)</enum><header>In
General</header><text>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).</text>
</subsection><subsection id="HBCB34D7722644BD2B7785E6DD5A7ABC0"><enum>(b)</enum><header>Exceptions</header><text>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—</text>
<paragraph id="H75667BE0558E45E39455EB3D4C54EA23"><enum>(1)</enum><text>located in an area
of the outer Continental Shelf that is unavailable for oil and gas or natural
gas leasing by operation of law;</text>
</paragraph><paragraph id="H7E2D9293424346C6A1739C7D8BA6318F"><enum>(2)</enum><text>used for a
military readiness activity (as defined in section 315(f) of Public Law
107–314; <external-xref legal-doc="usc" parsable-cite="usc/16/703">16 U.S.C. 703</external-xref> note); or</text>
</paragraph><paragraph id="H33BA0E45A34F462EB000AA0099D0FF"><enum>(3)</enum><text>required in the
national interest, as determined by the President.</text>
</paragraph></subsection></section><section id="H760A064ACC9244C5AE934D122F001E29"><enum>155.</enum><header>Repurchase of
certain leases</header>
<subsection id="H7349E423FB984F0CACB16886D626FE87"><enum>(a)</enum><header>Authority To
Repurchase and Cancel Certain Leases</header><text>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.</text>
</subsection><subsection id="HD05FFE6E50094AFF8346FE31B58EBF1"><enum>(b)</enum><header>Regulations</header><text>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:</text>
<paragraph id="HD67D27D1829C4AAF9B91B518F1BE3FC6"><enum>(1)</enum><text>The Secretary
shall repurchase and cancel a lease after written request by the lessee upon a
finding by the Secretary that—</text>
<subparagraph id="HF28CEE6D49CD4BAEB3AC45AB21766480"><enum>(A)</enum><text>a request by the
lessee for a required permit or other approval complied with applicable law,
except the <act-name parsable-cite="CAMA72">Coastal Zone Management Act of
1972</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/16/1451">16 U.S.C. 1451 et seq.</external-xref>), and terms of the lease and such
permit or other approval was denied;</text>
</subparagraph><subparagraph id="HF365E71AD8C841B0B3461EBFF7978032"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="H552989F783D045E591E1342629D82062"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H3E13D83A30204767B96746B700E0B0E9"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="H07231F0AD4B94B79B4D8E1D2706CC5E5"><enum>(3)</enum><text>The Secretary
shall make a final agency decision on a request by a lessee under this section
within 180 days of request.</text>
</paragraph><paragraph id="H68777E7A0E3A44B883A7FE00D13CD300"><enum>(4)</enum><text>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.</text>
</paragraph><paragraph id="HBDB6466A474C4B698B3B7E1CC3030042"><enum>(5)</enum><text>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.</text>
</paragraph><paragraph id="H4117E64C51224DBAB99EFAC6ECCC4F00"><enum>(6)</enum><text>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.</text>
</paragraph></subsection><subsection id="HFD22B7BD3B5D416495A5AB4F742F5442"><enum>(c)</enum><header>No
Prejudice</header><text>This section shall not be interpreted to prejudice any
other rights that the lessee would have in the absence of this section.</text>
</subsection></section><section id="HCF90CDD22B2B45B59B95E0E9679041E"><enum>156.</enum><header>Offsite
environmental mitigation</header><text display-inline="no-display-inline">Notwithstanding any other provision of law,
any person conducting activities under the <act-name parsable-cite="MLA">Mineral Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/181">30 U.S.C. 181 et seq.</external-xref>), the
Geothermal Steam Act (<external-xref legal-doc="usc" parsable-cite="usc/30/1001">30 U.S.C. 1001 et seq.</external-xref>), the
<act-name parsable-cite="MLA">Mineral Leasing Act</act-name> for Acquired Lands
(<external-xref legal-doc="usc" parsable-cite="usc/30/351">30 U.S.C. 351 et seq.</external-xref>), the Weeks Act (<external-xref legal-doc="usc" parsable-cite="usc/16/552">16 U.S.C. 552 et seq.</external-xref>), the General
Mining Act of 1872 (<external-xref legal-doc="usc" parsable-cite="usc/30/22">30 U.S.C. 22 et seq.</external-xref>), 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.</text>
</section><section id="H165AF27024B542E6ABCF9314AD65F415"><enum>157.</enum><header>Minerals
Management Service</header><text display-inline="no-display-inline">The bureau
known as the <quote>Minerals Management Service</quote> in the Department of
the Interior shall be known as the <quote>National Ocean Resources and Royalty
Service</quote>.</text>
</section><section id="H6D5313A67F4E4C95B1C5CBE95CFCD86D"><enum>158.</enum><header>Authority to
use decommissioned offshore oil and gas platforms and other facilities for
artificial reef, scientific research, or other uses</header>
<subsection id="H90E72C3A620340B3B5C3DCADDAAC3B1"><enum>(a)</enum><header>Short
Title</header><text>This section may be cited as the <quote><short-title>Rigs to Reefs Act of 2008</short-title></quote>.</text>
</subsection><subsection id="HF7B2504F9D09427B00BD68D7017F2E84"><enum>(b)</enum><header>In
General</header><text>The Outer Continental Shelf Lands Act (43 U.S.C. 1301 et
seq.) is amended by inserting after section 9 the following:</text>
<quoted-block id="H5E2BD48A7AF2420396AF00E3CBF4A521" style="OLC">
<section id="HDEA1337225BF469CA006247623E7EDF"><enum>10.</enum><header>Use of
decommissioned offshore oil and gas platforms and other facilities for
artificial reef, scientific research, or other uses</header>
<subsection id="HE4D609639A61422980F2A1E3C8A674B8"><enum>(a)</enum><header>In
General</header><text>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.</text>
</subsection><subsection id="H732F04BBF02F4E8F92AE6872D7F9D290"><enum>(b)</enum><header>Transfer
Requirements</header><text>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—</text>
<paragraph id="HC7640C29960F4B87A93FE093EC000070"><enum>(1)</enum><text>ongoing
maintenance of the platform or other facility;</text>
</paragraph><paragraph id="H8FAC9FF562CD492EB246822B49E4A1BD"><enum>(2)</enum><text>any liability
obligations that might arise;</text>
</paragraph><paragraph id="H8CC1E25C99204E15813FB6152783A5C4"><enum>(3)</enum><text>removal of the
platform or other facility if determined necessary by the Secretary; and</text>
</paragraph><paragraph id="H3211D693A1F14CA08C43D65B7CFC493B"><enum>(4)</enum><text>any other
requirements and obligations that the Secretary may deem appropriate by
regulation.</text>
</paragraph></subsection><subsection id="H4EEE7C4EB4474A0593CE7EB06838D3E0"><enum>(c)</enum><header>Plugging and
Abandonment</header><text>The Secretary shall ensure that plugging and
abandonment of wells is accomplished at an appropriate time.</text>
</subsection><subsection id="HFAEB2D42E3294A63A5378204FFEC2BE0"><enum>(d)</enum><header>Potential To
Petition To Opt-Out of Regulations</header><text>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.</text>
</subsection><subsection id="HA1396377B8234E95B3F2B767BDF3734E"><enum>(e)</enum><header>Limitation on
Liability</header><text>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—</text>
<paragraph id="H05D8D07190B8418C8DA0F11271A053AD"><enum>(1)</enum><text>use of the
platform or other facility by the person for development or production of oil
or gas; or</text>
</paragraph><paragraph id="H905340D9B6144537B7A400F06579D7E6"><enum>(2)</enum><text>another act or
omission of the person.</text>
</paragraph></subsection><subsection id="H2C1F41E227E94758880238DE1DEB6336"><enum>(f)</enum><header>Other Leasing
and Use not Affected</header><text>This section, and the use of any offshore
oil and gas platform or other facility for any purpose under subsection (a),
shall not affect—</text>
<paragraph id="HD32BCCFE938D41CF994C6C5B1F9FAF6F"><enum>(1)</enum><text>the authority of
the Secretary to lease any area under this Act; or</text>
</paragraph><paragraph id="H85CC030F36154735A85E66EE7EAB6BA"><enum>(2)</enum><text>any activity
otherwise authorized under this
Act.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H4D425E7CE8EA4008A4710736FD55631"><enum>(c)</enum><header>Deadline for
Regulations</header><text>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.</text>
</subsection><subsection id="HB3CD0C1723E843F695CB5F60A283FEF3"><enum>(d)</enum><header>Study and Report
on Effects of Removal of Platforms</header><text>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.</text>
</subsection></section><section id="H56B68CBAA21240DF8218E743BC53CE2F"><enum>159.</enum><header>Repeal of
requirement to conduct comprehensive inventory of OCS oil and natural gas
resources</header><text display-inline="no-display-inline">The Energy Policy
Act of 2005 (<external-xref legal-doc="public-law" parsable-cite="pl/109/58">Public Law 109–58</external-xref>) is amended—</text>
<paragraph id="HF1DE1CF8C55A4E64ADB48D085DA2E443"><enum>(1)</enum><text>by repealing
section 357 (119 Stat. 720; <external-xref legal-doc="usc" parsable-cite="usc/42/15912">42 U.S.C. 15912</external-xref>); and</text>
</paragraph><paragraph id="H89C0C70B2B7245D29DBB2543A0BDF177"><enum>(2)</enum><text>in the table of
contents in section 1(b), by striking the item relating to such section
357.</text>
</paragraph></section><section id="H9353FFE8B9F448DB916B308B741FB985"><enum>160.</enum><header>Mining and
petroleum schools</header>
<subsection id="H893221726D0E4BE4AAB92419A286F958"><enum>(a)</enum><header>Maintenance and
Restoration of Existing and Historic Petroleum and Mining Engineering
Programs</header><text>Public Law 98–409 (<external-xref legal-doc="usc" parsable-cite="usc/30/1221">30 U.S.C. 1221 et seq.</external-xref>) is amended to
read as follows:</text>
<quoted-block id="HB4D24DFE6A9344D389A86D7C8443FD6" style="OLC">
<section id="H7AF52DA74742440A80E9BFE0C7C27624" section-type="section-one"><enum>1.</enum><header>Short title</header><text display-inline="no-display-inline">This Act may be cited as the <quote>Energy
and Mineral Schools Reinvestment Act</quote>.</text>
</section><section id="H501878EBA8F04D8CB411BB62B41F5B78"><enum>2.</enum><header>Policy</header><text display-inline="no-display-inline">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.</text>
</section><section id="H6C1389DA46984E46AA67AF3FBFC0811B"><enum>3.</enum><header>Maintaining and
restoring historic and existing petroleum and mining engineering education
programs</header>
<subsection id="HC87EE814EFAF4A50ABF1810238254F92"><enum>(a)</enum><text>The Secretary of
the Interior (in this Act referred to as the <quote>Secretary</quote>) 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.</text>
</subsection><subsection id="HCBA287B64740439B8975B69C0004B2D7"><enum>(b)</enum><text>In this Act the
term <term>historic and existing State-chartered recognized petroleum or mining
school</term> 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.</text>
</subsection><subsection id="H51C2B24BE1F344D89F31AF7FBC507F00"><enum>(c)</enum><text>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.</text>
</subsection><subsection id="H5B7BF4FF013349DB81B500CEB84D0000"><enum>(d)</enum><text>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.</text>
</subsection><subsection id="H36F7206503D34782818B6ECD73105B23"><enum>(e)</enum><text>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.</text>
</subsection><subsection id="HD009A5FD1ABE47C3A8AB19DE2CA82F22"><enum>(f)</enum><text>Research funded by
this Act related to energy and mineral resource development and production may
include—</text>
<paragraph id="H53934F6652694CA597A6719DF422C74F"><enum>(1)</enum><text>studies of
petroleum, mining, and mineral extraction and immediately related beneficiation
technology;</text>
</paragraph><paragraph id="HD975FBE38E094205A45E5FA5667F50AD"><enum>(2)</enum><text>mineral economics,
reclamation technology, and practices for active operations;</text>
</paragraph><paragraph id="HA26C211789C240D300E6DD13E3FBF318"><enum>(3)</enum><text>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</text>
</paragraph><paragraph id="HB34DA5F725D349EAA13B031656F8032B"><enum>(4)</enum><text>research on ways
to extract petroleum and mineral resources that reduce the environmental impact
of those activities.</text>
</paragraph></subsection><subsection id="H6EA4AFFD9BC94834A9D1518304F94CD3"><enum>(g)</enum><text>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.</text>
</subsection><subsection id="H3BFF4C494860438D9F8CDA56DFC4CE4B"><enum>(h)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H796DC6F3FA1E43BF83D0400081B78341"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="H353FE347AA3043D3BD09683FF8911B00" indent="up1"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="HF04ED1991DE745DAB202EA6BE0CDCC98" indent="up1"><enum>(3)</enum><text>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.</text>
</paragraph><paragraph id="H54AB48CBBA56470BB92BFD2FEE9E8B8" indent="up1"><enum>(4)</enum><text>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.</text>
</paragraph></subsection></section><section id="H1E58F27E3D194B7C8F34BABAFAC5D18C"><enum>4.</enum><header>Former and new
petroleum and mining engineering programs</header>
<subsection id="H850B6497A96B4427A4AB1015CF184C9F"><enum>(a)</enum><text>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—</text>
<paragraph id="HFD45C6DFCBF140EFB41B4B1C6941B000"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="HAE3464283B98423A8C36C93065EDFD1D"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="HB6FB03D974F84E99A3DA39747DC3F751"><enum>(3)</enum><text>agrees to maintain
the accredited program for 10 years after the date of the first receipt of
funds under this Act.</text>
</paragraph></subsection><subsection id="H371951F9C9804A5CBD77715009876885"><enum>(b)</enum><text>The Secretary
shall seek the advice of the Committee established pursuant to section 11 in
determining the criteria used to carry out this section.</text>
</subsection></section><section id="H2BF2DAA673134CA0AB887F2C083783EE"><enum>5.</enum><header>Funding of
consortia of historic and existing schools</header><text display-inline="no-display-inline">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—</text>
<paragraph id="HD110EB7E9D804758A4666C3FD2CC5500"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="H9D2E65E4390243F0AD67F53EEC860054"><enum>(2)</enum><text>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.</text>
</paragraph></section><section id="HA610C91FD7154209B068CA918C578D27"><enum>6.</enum><header>Support for
schools with energy and mineral resource programs in petroleum and mineral
exploration geology, petroleum geophysics, or mining geophysics</header>
<subsection id="HA29DE0E6B8A7447F9F00DC38F23E21"><enum>(a)</enum><text>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.</text>
</subsection><subsection id="HB09165EA6F674B5B846D5481E8477D19"><enum>(b)</enum><text>The Secretary
shall determine the eligibility of a college or university to receive funding
under this Act using criteria that include—</text>
<paragraph id="HEE70241F9823493E006E1954EBB4F71F"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="H4F80EAEDC3064E040093E864F2E2A939"><enum>(2)</enum><text>evidence of
institutional commitment for the purposes of this Act that includes a
significant opportunity for participation by undergraduate students in
research;</text>
</paragraph><paragraph id="H05F681F1EA024711A25CD431F16EDB25"><enum>(3)</enum><text>evidence that such
school, university, or institution has or can obtain significant industrial
cooperation in activities within the scope of this Act;</text>
</paragraph><paragraph id="H64497A66607842489CCB18A806BB4C00"><enum>(4)</enum><text>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</text>
</paragraph><paragraph id="HDE6746892DD341A19815B8AB611CC957"><enum>(5)</enum><text>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).</text>
</paragraph></subsection><subsection id="H8D58AD4D7FBF4486A45DDF24CA8BA359"><enum>(c)</enum><text>The Secretary
shall seek the advice of the Committee established pursuant to section 11 in
determining the criteria used to carry out this section.</text>
</subsection></section><section id="H72D14915EA424C389ED4C3D82E2589CF"><enum>7.</enum><header>Designation of
funds for scholarships and fellowships</header>
<subsection id="HE73AFC3AF6CA4DD4B2CBF9E42D4D1623"><enum>(a)</enum><text>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.</text>
</subsection><subsection id="HD9E90101E7834FEC949F38BADB7FF7EA"><enum>(b)</enum><text>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.</text>
</subsection><subsection id="H11BCF5B7B1A2404C8023A51BE6743361"><enum>(c)</enum><text>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.</text>
</subsection><subsection id="HFEC67046327843FCB44C5DF4FE47C584"><enum>(d)</enum><text>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.</text>
</subsection></section><section id="HC93C8BDE19584588BE8F28247EF50AF"><enum>8.</enum><header>Funding criteria
for institutions</header>
<subsection id="H647E2F92301A4787B5B7DE33A6B3C99C"><enum>(a)</enum><text>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.</text>
</subsection><subsection id="HF7F6C09C8C644998B1B5F3ACB7D220EB"><enum>(b)</enum><text>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.</text>
</subsection><subsection id="H2FFA2C6BF0174427B7699141A986ED6D"><enum>(c)</enum><text>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—</text>
<paragraph id="HA531A1818E184A36BFA24900387DE4F2"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="HCB94B741AAD545DABB98A5BAFAC63DA"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="HCBCD61126E1C427DA56F00F81D4B0068"><enum>(3)</enum><text>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.</text>
</paragraph></subsection><subsection id="HE25F6F06EE044AAE9EB05930CCE83E30"><enum>(d)</enum><text>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.</text>
</subsection><subsection id="H16DB74AE1C344091BB870645AE47B689"><enum>(e)</enum><text>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.</text>
</subsection></section><section id="H8A303875C6404DF58FD1995E8E514CC6"><enum>9.</enum><header>Duties of
Secretary</header>
<subsection id="H722DA6A32BC84564BBB054AACBEDCD0"><enum>(a)</enum><text>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.</text>
</subsection><subsection id="H1995AD6008504B1886C198D7B39EC78"><enum>(b)</enum><paragraph commented="no" display-inline="yes-display-inline" id="H748028572A174DD5956D614DA521A835"><enum>(1)</enum><text>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
<quote>Office</quote>) 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 <external-xref legal-doc="usc" parsable-cite="usc/5/3132">section 3132(a)(8)</external-xref> of title 5, United
States Code.</text>
</paragraph><paragraph id="H66AEE0CB9E5B41399460E7DAFBA4200" indent="up1"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="H97E925A6FD914CEC81FE2F85E700B46E" indent="up1"><enum>(3)</enum><text>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—</text>
<subparagraph id="H350007CB47604D4295C9D794559C596E"><enum>(A)</enum><text>providing professional and
administrative staff support for the Committee including recordkeeping and
maintaining minutes of all Committee and subcommittee meetings;</text>
</subparagraph><subparagraph id="H04D5F3F4806645A592C3002B18EEF6A1"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph id="H61784CA0951044ACA4BAC9BC06B1169E"><enum>(C)</enum><text>maintaining accurate records of funds
disbursed for all scholarship and fellowship grants, research grants, and
grants for career technical education purposes;</text>
</subparagraph><subparagraph id="H369BC508E85B49FEA2BC26678CB79BC8"><enum>(D)</enum><text>preparing any regulations required to
implement this Act;</text>
</subparagraph><subparagraph id="H2B8F9EC58D274B7BB85D371DC89851E6"><enum>(E)</enum><text>conducting site visits at schools,
universities, and institutions receiving funding under this Act; and</text>
</subparagraph><subparagraph id="H5E5257C79F4847CEB2FE590660225E11"><enum>(F)</enum><text>serving as a central repository for
reports and clearing house for public information on research funded by this
Act.</text>
</subparagraph></paragraph><paragraph id="H82CD3531753146DA9E8073AE650005AA" indent="up1"><enum>(4)</enum><text>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.</text>
</paragraph><paragraph id="HB7607DACBB1C4EF7AFBBD00A382EBE" indent="up1"><enum>(5)</enum><text>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 <external-xref legal-doc="usc" parsable-cite="usc/41/5">section 5</external-xref> of title 41, United States Code, in carrying out his
or her functions.</text>
</paragraph><paragraph id="H6821AD94014A44AD928B34C45C1942B2" indent="up1"><enum>(6)</enum><text>As needed the Director shall
ascertain whether the requirements of this Act have been met by schools,
universities, institutions, and individuals.</text>
</paragraph></subsection><subsection id="H5F647884F49045FE8E76409C8998AF3"><enum>(c)</enum><text>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.</text>
</subsection><subsection id="H619E0253C025436FB5ED874CC069E8E"><enum>(d)</enum><text>The Secretary shall
establish procedures—</text>
<paragraph id="H8F5CA30CFBB6441F829CCCBB464C85"><enum>(1)</enum><text>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;</text>
</paragraph><paragraph id="H2DBA0D53A0F44B3CBF1B1F5C07D01800"><enum>(2)</enum><text>to require any
employee, contractor, or member of the Committee with a financial relationship
disclosed under paragraph (1) to recuse themselves from—</text>
<subparagraph id="H7377EE78EC724FF996A452791F5F2206"><enum>(A)</enum><text>any recommendation
or decision regarding the awarding of funds, scholarships or fellowships;
or</text>
</subparagraph><subparagraph id="H9D2E301752C641A79367BEE498D07E23"><enum>(B)</enum><text>any review,
report, analysis or investigation regarding compliance with the provisions of
this Act by a school, university, institution or any individual.</text>
</subparagraph></paragraph></subsection><subsection id="H76CA84E2AD854C69B0E1D0091CB527E"><enum>(e)</enum><text>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.</text>
</subsection><subsection id="HC9D40A7B73054A04BF44EB1BCBBB644E"><enum>(f)</enum><text>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.</text>
</subsection><subsection id="H233BE348C6724303A162AF81A6E2941D"><enum>(g)</enum><text>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 <external-xref legal-doc="public-law" parsable-cite="pl/108/234">Public Law 108–234</external-xref>, and Executive
Order No. 13363.</text>
</subsection></section><section id="HEEC5E4EE2E324FA4879D87F5C7B8D827"><enum>10.</enum><header>Coordination</header>
<subsection id="H0EC449FDDD804CF4AD876200003E9EF8"><enum>(a)</enum><text>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.</text>
</subsection><subsection id="H16079E519D8C4C73A942006F966059FF"><enum>(b)</enum><text>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.</text>
</subsection><subsection id="H9CFAD160EED44B858F87C563DF4EE193"><enum>(c)</enum><text>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.</text>
</subsection><subsection id="H804C8CA70ECF48CA0002F2B5522881D5"><enum>(d)</enum><text>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.</text>
</subsection></section><section id="HC1938C512D96474FB860005851D6E29B"><enum>11.</enum><header>Committee on
petroleum, mining, and Mineral Engineering and Energy and Mineral Resource
Education</header>
<subsection id="H7E9A763222E846988D3DB67FFA9D6D8E"><enum>(a)</enum><text>The Secretary
shall appoint a Committee on Petroleum, Mining, and Mineral Engineering and
Energy and Mineral Resource Education composed of—</text>
<paragraph id="HB488623760EF4122AF16BDB35C007256"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="H20615E6935DC4423952FB50CB69735"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="H5408100B56684E49A7F24E3B6F8A957"><enum>(b)</enum><text>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.</text>
</subsection><subsection id="H4F90DD1BF7E64948BB57E09879B053F"><enum>(c)</enum><text>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 <external-xref legal-doc="usc" parsable-cite="usc/5/5136">section 5136</external-xref> of title 5, United States Code, and shall be fully
reimbursed for travel, subsistence, and related expenses.</text>
</subsection><subsection id="H8A15ED2BFCF94FD5A2FA9EDE83587D9F"><enum>(d)</enum><text>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.</text>
</subsection><subsection id="H5B84CEF0E1F2425C8C07E0B531025DE8"><enum>(e)</enum><text>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.</text>
</subsection><subsection id="HF98B48C2B310421CB0408C6FA8E7C447"><enum>(f)</enum><text>Section 10 of the
<act-name parsable-cite="FACA">Federal Advisory Committee Act</act-name> (5
U.S.C. App. 2) shall not apply to the Committee.</text>
</subsection></section><section id="H8CEE891D7E1D4D66869DA9A4FBA3F6DF"><enum>12.</enum><header>Career technical
education</header>
<subsection id="HEB71DE5DC763436D83EF03E12E3B1B17"><enum>(a)</enum><text>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.</text>
</subsection><subsection id="HA619A1AA6CA44E4EBCAD5B2B1F04A447"><enum>(b)</enum><text>The Secretary
shall determine the eligibility of a school or institution to receive funding
under this section using criteria that include—</text>
<paragraph id="H61C6DF7B190F49A8A057CA18E4D9F374"><enum>(1)</enum><text>the presence of a
State-approved program in mining engineering technology, petroleum engineering
technology, industrial engineering technology, or industrial technology
that—</text>
<subparagraph id="HE7140B65C2B94409AAE9006EC931C634"><enum>(A)</enum><text>is focused on
technology and its use in energy and mineral production and related
maintenance, operational safety, or energy infrastructure protection and
security;</text>
</subparagraph><subparagraph id="H01A3BE43E75A4728A75BCF8D8E0323D4"><enum>(B)</enum><text>prepares students
for advanced or supervisory roles in the mining industry or the petroleum
industry; and</text>
</subparagraph><subparagraph id="HAABD42C6C22A4A499597698B72BFEDB"><enum>(C)</enum><text>grants either an
associate’s degree or a baccalaureate degree in one of the subjects listed in
subparagraph (A);</text>
</subparagraph></paragraph><paragraph id="HE37328506466423FB678041ECBDADCC"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="H73D3ECB80DBA4D53AE1BB786D3A0AD99"><enum>(3)</enum><text>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—</text>
<subparagraph id="H251D67AA40C14AD7ABEF394475DA9CFC"><enum>(A)</enum><text>agriculture,
forestry, or fisheries;</text>
</subparagraph><subparagraph id="H3E385C4F8E8E44508D20ECACBCD83AE"><enum>(B)</enum><text>utilities;</text>
</subparagraph><subparagraph id="H8895E55C8C9140C3A3F4FCDCBBC32BA"><enum>(C)</enum><text>construction;</text>
</subparagraph><subparagraph id="H766AF206F94145DF834C727F25F97226"><enum>(D)</enum><text>manufacturing;
and</text>
</subparagraph><subparagraph id="H05DEDC8768E04D93A4BFD659CEE1D9FA"><enum>(E)</enum><text>transportation and
warehousing.</text>
</subparagraph></paragraph></subsection><subsection id="H3E4C81F2BA974FE8B7102DECC99FA2D8"><enum>(c)</enum><text>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.</text>
</subsection><subsection id="H3D128EAF124C44F6B4000741B5BE156F"><enum>(d)</enum><text>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.</text>
</subsection><subsection id="H84560DCA1C7C4FC48865E3DF8E4ED76C"><enum>(e)</enum><text>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.</text>
</subsection><subsection id="H48694D0B9D984EC38D98BB86ED39B4D1"><enum>(f)</enum><text>The Secretary
shall seek the advice of the Committee established pursuant to section 11 in
determining the criteria used to carry out this section.</text>
</subsection></section><section id="H057DF610AC1749C2891C3D0019F6FE00"><enum>13.</enum><header>Department of
the Interior workforce enhancement</header>
<subsection id="H37E8C91CF3D741DB83861FF7D11DD83"><enum>(a)</enum><header>Physical Science,
Engineering and Technology Scholarship Program</header>
<paragraph id="H7C25886CD26F43ADB4E25250B79B53C9"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="H915C7893A0D04224B8566334C6B760D"><enum>(2)</enum><text>The Secretary of
the Interior may award a scholarship in accordance with this section to a
person who—</text>
<subparagraph id="HF4F9BA38B67749AEA96272F4511BB58D"><enum>(A)</enum><text>is a citizen of
the United States;</text>
</subparagraph><subparagraph id="H7DF1A9E1AF73441BB643CB1A48525B9"><enum>(B)</enum><text>is pursuing an
undergraduate or advanced degree in a critical skill or discipline described in
paragraph (1) at an institution of higher education; and</text>
</subparagraph><subparagraph id="H1210183004ED49C7B2E3B12381EFFA86"><enum>(C)</enum><text>enters into a
service agreement with the Secretary of the Interior as described in subsection
(e).</text>
</subparagraph></paragraph><paragraph id="H617721F2A7434E8BAB758E976F1938C9"><enum>(3)</enum><text>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.</text>
</paragraph></subsection><subsection id="H68E2996C4C9448F2BA6345BF25C0A8A8"><enum>(b)</enum><header>Scholarship
Program for Students Attending Minority Serving Higher Education
Institutions</header>
<paragraph id="H64395867C8EB44EA865B5CC3E8B22403"><enum>(1)</enum><text>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—</text>
<subparagraph id="H04B42565A131442C968E643F988363A3"><enum>(A)</enum><text>are enrolled in a
Minority Serving Higher Education Institution;</text>
</subparagraph><subparagraph id="H14704D8D98B240E39B7806851DAB2500"><enum>(B)</enum><text>are citizens or
nationals of the United States;</text>
</subparagraph><subparagraph id="H630127ACDC754ECD9FB26684A41CD8C"><enum>(C)</enum><text>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</text>
</subparagraph><subparagraph id="HFFFAF663B3504C7D8721E8F72310F6EA"><enum>(D)</enum><text>enter into a
service agreement with the Secretary of the Interior as described in subsection
(e).</text>
</subparagraph></paragraph><paragraph id="HBE05EEBC9E5F48CAA678CD5169F54255"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="HD571387492644373815943E850005618"><enum>(c)</enum><header>Education
Partnerships With Minority Serving Higher Education Institutions</header>
<paragraph id="H8C7686C422D54944887E9667E94DB921"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="H49FFD39A6E014D93BB735265BD577436"><enum>(2)</enum><text>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—</text>
<subparagraph id="HE8A57BC6CECF4A158E3B4CA85103F6A4"><enum>(A)</enum><text>funding faculty
and students in these institutions in collaborative research projects that are
directly related to the Departmental or Bureau missions;</text>
</subparagraph><subparagraph id="H16440D93D9D645B1A53CC4BD71C30461"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph id="HD31FB9C95DA744798D26A49541366F67"><enum>(C)</enum><text>allowing faculty
and students at these Minority Serving Higher Education Institutions to
participate Departmental and Bureau training activities;</text>
</subparagraph><subparagraph id="H58BCA30C36DC4CB6BE9E5FE2E6BBD184"><enum>(D)</enum><text>funding paid
internships in Departmental and Bureau facilities for students at Minority
Serving Higher Education Institutions; and</text>
</subparagraph><subparagraph id="H819A304ECA5141C287A86D4554C372D6"><enum>(E)</enum><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="H183CC9384BF34AECB7FB502E96CBC9B"><enum>(d)</enum><header>Service Agreement
for Recipients of Assistance</header>
<paragraph id="HFA6978E075A9481BB3EBF13B295E9200"><enum>(1)</enum><text>To receive
financial assistance under subsection (a) or (b) of this section—</text>
<subparagraph id="H219E42DBE65947EEAFAAD89CD2A1B3F4"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="H5A03646933094BB99098A4904D00D56C"><enum>(B)</enum><text>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).</text>
</subparagraph></paragraph><paragraph id="H8048E8BA2C2D4AEABE732B1C635CB5F9"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="H9D70C4E97B9F40990093CEC812845780"><enum>(3)</enum><text>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.</text>
</paragraph></subsection><subsection id="HA1605EEAED584B9ABD4C6061C4AE6758"><enum>(e)</enum><header>Refund for
Period of Unserved Obligated Service</header>
<paragraph id="H6D8A40C66D4449269578363EC316522B"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="H3B47A25483544584B1CC01D3B1BF994C"><enum>(2)</enum><text>An obligation to
reimburse the United States imposed under paragraph (1) is for all purposes a
debt owed to the United States.</text>
</paragraph><paragraph id="H1E6B7DEF84C0485EA297D66B8389008E"><enum>(3)</enum><text>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.</text>
</paragraph><paragraph id="H24B608A76ECD442BAD754D0116D7BB9E"><enum>(4)</enum><text>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.</text>
</paragraph></subsection><subsection id="HAF6E47FFC33644C1A1E9E994B427BD67"><enum>(f)</enum><header>Relationship to
Other Programs</header><text>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.</text>
</subsection><subsection id="H4626BC5EB2764220AF42578DF6E810FA"><enum>(g)</enum><header>Report</header><text>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.</text>
</subsection><subsection id="HE9F2E66C188B41028D863F25E5004B65"><enum>(h)</enum><header>Definitions</header><text>As
used in this section:</text>
<paragraph id="H8A3F513595374755A5EA45323C09A728"><enum>(1)</enum><text>The term
<term>Minority Serving Higher Education Institutions</term> means a
Hispanic-serving institution, historically Black college or university, Alaska
Native-serving institution, tribal college or university, or insular area
school.</text>
</paragraph><paragraph id="HFDB35629235A4775A3722200AEFA88A7"><enum>(2)</enum><text>The term
<term>Hispanic-serving institution</term> has the meaning given the term in
section 502(a) of the <act-name parsable-cite="HEA65">Higher Education Act of
1965</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/20/1101a">20 U.S.C. 1101a(a)</external-xref>).</text>
</paragraph><paragraph id="H774D205FD8444F999C8CD9E31D00E1EE"><enum>(3)</enum><text>The term
<term>historically Black college or university</term> has the meaning given the
term <term>part B institution</term> in section 322 of the
<act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20
U.S.C. 1061).</text>
</paragraph><paragraph id="H9B154F3B60104E79B3121DF6B7C1E40"><enum>(4)</enum><text>The term
<term>tribal college or university</term> has the meaning given the term
<term>Tribal College or University</term> in section 316(b)(3) of the
<act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name> (20
U.S.C. 1059c).</text>
</paragraph><paragraph id="HCDF35B4805174FF581D1157BB7B45C45"><enum>(5)</enum><text>The term
<term>institution of higher education</term> has the meaning given such term in
section 101 of the <act-name parsable-cite="HEA65">Higher Education Act of
1965</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/20/1001">20 U.S.C. 1001</external-xref>).</text>
</paragraph><paragraph id="H17F77D9CC56F49BDB12592F827B927E5"><enum>(6)</enum><text>The term
<term>Alaska Native-serving institution</term> has the meaning given the term
in section 317 of the <act-name parsable-cite="HEA65">Higher Education Act of
1965</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/20/1059d">20 U.S.C. 1059d</external-xref>).</text>
</paragraph><paragraph id="H252589CBD5B74DF2978EE6E59E637616"><enum>(7)</enum><text>The term
<term>insular area school</term> 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.</text>
</paragraph></subsection><subsection id="HE1B5D93C11A646199857B2B68CD9B49"><enum>(i)</enum><header>Funding</header><text>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.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5C6092FC9E4347D8A89B41DCD43004B9"><enum>(b)</enum><header>Funding for
Energy Research</header>
<paragraph id="H53C7784FD7604D2F8867755EF770B7E3"><enum>(1)</enum><text>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—</text>
<subparagraph id="HDF83CEFE088840BB9D1E038DD44F5716"><enum>(A)</enum><text>reduce dependence
on foreign energy supplies;</text>
</subparagraph><subparagraph id="H0DD7C27D9D9744D8AEDC758C7B86CE87"><enum>(B)</enum><text>reduce or
eliminate emissions of greenhouse gases;</text>
</subparagraph><subparagraph id="HAD997D0D4F044C3DA65DC262CA7975F2"><enum>(C)</enum><text>reduce negative
environmental effects associated with energy production, storage, and use;
and</text>
</subparagraph><subparagraph id="H046EB9FCEA7447E9A11D6E88B7D3EDF5"><enum>(D)</enum><text>enhance the
competitiveness of United States energy technology exports.</text>
</subparagraph></paragraph><paragraph id="HA8308BD02EF74A87AF385E04B0D15CC"><enum>(2)</enum><text>Awards made under
this subsection may include funding for—</text>
<subparagraph id="H70F1B2D1DA5046D7AA58C4032BD6CEE"><enum>(A)</enum><text>energy
efficiency;</text>
</subparagraph><subparagraph id="H1E27CE959878472D85325429673D2924"><enum>(B)</enum><text>renewable energy,
including solar, wind, and biofuels; and</text>
</subparagraph><subparagraph id="HB42ED50C6B7E4F54AD796066C9F52500"><enum>(C)</enum><text>nuclear, hydrogen,
and any other energy research that could accomplish the purpose set forth in
paragraph (1).</text>
</subparagraph></paragraph><paragraph id="H3FD421EEA21E4DD082BE4378C9FEAE2C"><enum>(3)</enum><text>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.</text>
</paragraph><paragraph id="H8F32F316A66E4701BEBF00FDBCC6AB43"><enum>(4)</enum><text>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.</text>
</paragraph><paragraph id="H6ED84D314ECD4322AAB035E27900787E"><enum>(5)</enum><text>In this
subsection, the term <term>institution of higher education</term> has the
meaning given that term in section 101(a) of the
<act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name>.</text>
</paragraph></subsection><subsection id="H4A5DE84A763C44E08F5309FCDD386"><enum>(c)</enum><header>Funding for Energy
Scholarships</header>
<paragraph id="HDD343CC1B18B44EBA440E0C1D17801C2"><enum>(1)</enum><text>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).</text>
</paragraph><paragraph id="H5890B87F1CF84B16893DF98000CC4433"><enum>(2)</enum><text>Awards made under
this subsection may include funding for—</text>
<subparagraph id="H3A03BBE96A8945669E1FC2773F4EEABB"><enum>(A)</enum><text>energy
efficiency;</text>
</subparagraph><subparagraph id="H5C385ACA32B44B8CBA74001BF9FAFBEA"><enum>(B)</enum><text>renewable energy,
including solar, wind, and biofuels; and</text>
</subparagraph><subparagraph id="HAFF9B523D50D41349F92B428BA3BAD8F"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="HE4B6DAE4F3734E9198597F22A7039003"><enum>(3)</enum><text>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.</text>
</paragraph><paragraph id="HEE1C9CB369C6452A863E761F006CA017"><enum>(4)</enum><text>In this
subsection, the term <term>institution of higher education</term> has the
meaning given that term in section 101(a) of the
<act-name parsable-cite="HEA65">Higher Education Act of 1965</act-name>.</text>
</paragraph></subsection><subsection id="H60EB40CD0E13423B81E636D2935CD92"><enum>(d)</enum><header>Authorization of
Appropriations</header><text>There is authorized to be appropriated to carry
out this section $150,000,000 for each of fiscal years 2009 through
2019.</text>
</subsection></section><section id="H26B21728BB234620A7AB3DF98455CE54"><enum>161.</enum><header>Onshore and
offshore mineral lease fees</header><text display-inline="no-display-inline">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.</text>
</section><section id="H5214D64A58DF43EA9963FAA8EFD9800"><enum>162.</enum><header>OCS regional
headquarters</header><text display-inline="no-display-inline">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.</text>
</section><section id="HD02043AC7C644227A03300F55F52C243"><enum>163.</enum><header>National Geo
Fund Act of 2008</header>
<subsection id="HFE66D70A68A847F19865F0BE0040F74E"><enum>(a)</enum><header>Short
Title</header><text>This section may be cited as the <quote>National Geo Fund
Act of 2008</quote>.</text>
</subsection><subsection id="H46EF8E01327D4933A712329B2682CEEC"><enum>(b)</enum><header>Purposes</header><text>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.</text>
</subsection><subsection id="H6F3AEAAE4D204706A08BF75845FC700"><enum>(c)</enum><header>State
Defined</header><text>In this section the term <quote>State</quote> means the
agency of a State designated by its Governor or State law to perform the
functions and activities described in subsection (b).</text>
</subsection><subsection id="H22C37764E540435A841EC8FB92C9DBA4"><enum>(d)</enum><header>Strategic
Unconventional Resources</header>
<paragraph id="H751C29B7DE1944B9A2EBB42560AE7307"><enum>(1)</enum><header>Program</header><text>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<subscript>2</subscript> 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.</text>
</paragraph><paragraph id="H7D2208035E7846B988A585019D79BA1"><enum>(2)</enum><header>Pilot
projects</header><text>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.</text>
</paragraph><paragraph id="HDBDC5A5101E8483B953B88C67C2B2942"><enum>(3)</enum><header>Definitions</header><text>In
this subsection:</text>
<subparagraph id="H52996653050A49219051E5E0EE58AFAF"><enum>(A)</enum><header>Strategic
unconventional resources</header><text>The term <quote>strategic unconventional
resources</quote> means hydrocarbon resources, including heavy oil, shale, tar
sands, and coal deposits, from which liquid fuels may be produced.</text>
</subparagraph><subparagraph id="H8FA285391D824F7592DD9E7C32A77187"><enum>(B)</enum><header>In situ
extraction methods</header><text>The term <quote>in situ extraction
methods</quote> 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.</text>
</subparagraph></paragraph><paragraph id="H83191511D95C4C03875FF5B878D8C5D4"><enum>(4)</enum><header>Authorization of
appropriations</header><text>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.</text>
</paragraph></subsection><subsection id="H2BC50E06B49A4CB98C352ED1662DCA84"><enum>(e)</enum><header>Support of
Geothermal and Geopressure Oil and Gas Energy Production</header>
<paragraph id="HB59FDB89A9C647BB824F64E01DF4EFC1"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="HA07140DDB955450C924600A1F21EB7AE"><enum>(A)</enum><text>include not less
than five oil or gas well sites per project award;</text>
</subparagraph><subparagraph id="H1F6A527FFF8F48ABB9C59BD8AE8F4520"><enum>(B)</enum><text>use a range of oil
or gas well hot water source temperatures from 150 degrees Fahrenheit to 300
degrees Fahrenheit;</text>
</subparagraph><subparagraph id="HD18F6CD3C3AE4BAC8C19152B8BC6B2AE"><enum>(C)</enum><text>use existing or
new oil or gas wells;</text>
</subparagraph><subparagraph id="H0FDAC86CE50245E4B340BACEF18DDFAF"><enum>(D)</enum><text>cover a range of
sizes from 175 kilowatts to one megawatt;</text>
</subparagraph><subparagraph id="H6F279655FFA9464585EF3BEBE63D3E29"><enum>(E)</enum><text>are located at a
range of sites including tribal lands, Federal lease, State, or privately owned
sites;</text>
</subparagraph><subparagraph id="H56C757AC41C34755935F004C76D559D3"><enum>(F)</enum><text>can be replicated
at a wide range of sites;</text>
</subparagraph><subparagraph id="HBEF24BB7693140D9889C27FC3DD09F77"><enum>(G)</enum><text>facilitate
identification of optimum techniques among competing alternatives;</text>
</subparagraph><subparagraph id="HF42FEAE098744063B881E3815CA5A9E4"><enum>(H)</enum><text>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</text>
</subparagraph><subparagraph id="H31D994D40F754790B47D3F76F990EDC2"><enum>(I)</enum><text>satisfy other
criteria that the Secretary determines are necessary to carry out the
program.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">The
Secretary shall give preference to assessments that address multiple elements
contained in subparagraphs (A) through (I).</continuation-text></paragraph><paragraph id="H25113BD8ED0C4442B1B9A8F6D1F86942"><enum>(2)</enum><header>Grant
awards</header>
<subparagraph id="H3AA27096F72B4C43A934BAB82EE8ECBE"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="H45A3CEFD012042CFB99B00C2755272F6"><enum>(i)</enum><text>necessary and
appropriate site engineering study;</text>
</clause><clause id="HE8B19063F6CA44E98700225061C65404"><enum>(ii)</enum><text>detailed economic
assessment of site specific conditions;</text>
</clause><clause id="HADEB819EA4AB4F1EA85947CDB556708B"><enum>(iii)</enum><text>appropriate
feasibility studies to determine ability for replication;</text>
</clause><clause id="HD3BC63A95612435FAD92AB8B00C585C8"><enum>(iv)</enum><text>design or
adaptation of existing technology for site specific circumstances or
conditions;</text>
</clause><clause id="H51FF68CAE76043D9A8AF3E9B35D45714"><enum>(v)</enum><text>installation of
equipment, service, and support; and</text>
</clause><clause id="H5428230BD7F7453C8BA0AAB08C8174BF"><enum>(vi)</enum><text>monitoring for a
minimum of one year after commissioning date.</text>
</clause></subparagraph></paragraph><paragraph id="HB8B6210833F54125B45CF41078E2A885"><enum>(3)</enum><header>Competitive
grant selection</header><text>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).</text>
</paragraph><paragraph id="H4059D81E920A4D28001833EBF870CF3C"><enum>(4)</enum><header>Federal
share</header><text>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.</text>
</paragraph><paragraph id="HE2CB957653D34CF99C5DB7B860ED2394"><enum>(5)</enum><header>Authorization of
appropriations</header><text>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.</text>
</paragraph><paragraph id="H0FB71B5F74E649E4885D1B6C2C51ED16"><enum>(6)</enum><header>Amendment</header><text>Section
4 of the Geothermal Steam Act of 1970 (<external-xref legal-doc="usc" parsable-cite="usc/30/1003">30 U.S.C. 1003</external-xref>) is amended by adding at
the end the following:</text>
<quoted-block id="H7A435A6A3A774BFF84981F2950E3608" style="OLC">
<subsection id="H80631C1A3392441F9CF14881EB67DEAE"><enum>(h)</enum><header>Geothermal
Resources Co-Produced With the Minerals</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H75C8565718784535006979481BB5125E"><enum>(f)</enum><header>Liquid Fuels
Grant Program</header>
<paragraph id="H73B4909186B44EC9AA4354CB45DBB04D"><enum>(1)</enum><header>Program</header><text>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 <quote>LRCWF</quote>).</text>
</paragraph><paragraph id="HF9EF0B9F1FBA48ACBE9461369FC411A8"><enum>(2)</enum><header>LRCWF</header><text>The
LRCWF grant project location shall use lignite coal and shall be allocated
$15,000,000.</text>
</paragraph><paragraph id="H78ED461940DF49EBBC95A448D97BE500"><enum>(3)</enum><header>Definitions</header><text>In
this subsection:</text>
<subparagraph id="H16842BD0836349DAA72BA5CF6844F059"><enum>(A)</enum><header>Coal-to-liquids
front-end engineering and design</header><text>The terms <quote>coal-to-liquids
front-end engineering and design</quote> and <quote>FEED</quote> 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.</text>
</subparagraph><subparagraph id="H3CFCC697926B4C77894BF876661E9BFF"><enum>(B)</enum><header>Low-rank coal
water fuel</header><text>In this subsection the term <quote>low-rank coal water
fuel</quote> means a liquid fuel produced from hydrothermal treatment of
lignite and sub-bituminous coals.</text>
</subparagraph></paragraph><paragraph id="HF448BDB9E70E4604886BDB0000F42CA8"><enum>(4)</enum><header>Grant
provisions</header><text>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.</text>
</paragraph><paragraph id="H79E669F46E464876AE5C7625EE761916"><enum>(5)</enum><header>Authorization of
appropriations</header><text>There is authorized to be appropriated to carry
out this subsection $50,000,000 for each of fiscal years 2009 through
2016.</text>
</paragraph></subsection><subsection id="HB3681FCE19F84BCF8E64CE3478009376"><enum>(g)</enum><header>Renewable Energy
From Ocean Wave, Current, and Thermal Resources</header>
<paragraph id="HC3BAB182807C4E4A825DBB2734B9BBE9"><enum>(1)</enum><header>Program</header><text>The
Secretary of the Interior shall establish a grant program for the production of
renewable energy from ocean waves, tides, currents, and thermal
resources.</text>
</paragraph><paragraph id="H229DD7C6FD64458785FC1666B1BF2F30"><enum>(2)</enum><header>Grant
provisions</header><text>All grants under this subsection shall require a 50
percent non-Federal cost share.</text>
</paragraph><paragraph id="H4D3B9BB4A32B4DE9BDF21CBD805B3B99"><enum>(3)</enum><header>Authorization of
appropriations</header><text>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.</text>
</paragraph></subsection><subsection id="H77FEF963C5EB4DA88069BD2E5FF2177B"><enum>(h)</enum><header>Amendment to the
Surface Mining Control and Reclamation Act of 1977</header><text>Section 507 of
the Surface Mining Control and Reclamation Act of 1977 (<external-xref legal-doc="usc" parsable-cite="usc/30/1267">30 U.S.C. 1267</external-xref>) is
amended by adding at the end the following:</text>
<quoted-block id="H6AE8F2D641A14892A82FDF3C6B7E6BAC" style="OLC">
<subsection id="H4A060809852A4233A7A41BCD0020E064"><enum>(i)</enum><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H0607DDA427BF47DDA387E4DE7335EFB"><enum>(i)</enum><header>Amendment to the
energy policy act of 2005</header><text>Section 357 of the Energy Policy Act of
2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/15912">42 U.S.C. 15912</external-xref>) is amended by redesignating subsection (b) as subsection
(c), and inserting the following new subsection:</text>
<quoted-block id="H0F4D9FF5F4BD410C845C6153476CB9BB" style="OLC">
<subsection id="H40CB449020DA47C59793C21223B1E48"><enum>(b)</enum><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H3AC0C5EC13B84229BE128DA4D85FB29F"><enum>164.</enum><header>Leases for
areas located within 100 miles of California or Florida</header>
<subsection id="H06AF6D6D7D0A468BA8F725EB53A1FB95"><enum>(a)</enum><header>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</header>
<paragraph id="H280EA62F3AA743EDB6029235BAF0528E"><enum>(1)</enum><header>Authority</header><text>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.</text>
</paragraph><paragraph id="H18D735EFEA8E47D6B56E1E3849F7BBB1"><enum>(2)</enum><header>Administrative
process</header><text>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
<act-name parsable-cite="NEPA69">National Environmental Policy Act of
1969</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/4321">42 U.S.C. 4321 et seq.</external-xref>). Further, such actions conducted in
accordance with this section are deemed to be in compliance all provisions of
the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>).</text>
</paragraph><paragraph id="H35ACD9BF4E3B4BEFB7028DC8EC82198"><enum>(3)</enum><header>Operating
restrictions</header><text>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.</text>
</paragraph><paragraph id="HBA42BF0A2E7643C5A9F47C26CE8C6E3F"><enum>(4)</enum><header>Priority</header><text>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.</text>
</paragraph><paragraph id="H61A9510F58774ADB8E363B29332322E"><enum>(5)</enum><header>Exploration
plans</header><text>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.</text>
</paragraph></subsection><subsection id="HAF0EA4C963A74366A27BA12F85BD5012"><enum>(b)</enum><header>Further Lease
Cancellation and Exchange Provisions</header>
<paragraph id="H044F233BA802490B9403D55A5D4F9D2"><enum>(1)</enum><header>Cancellation of
lease</header><text>As part of the lease exchange process under this section,
the Secretary shall cancel a lease that is exchanged under this section.</text>
</paragraph><paragraph id="HE44DACCF02DE40BDA0629E4DAB2557F8"><enum>(2)</enum><header>Consent of
lessees</header><text>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.</text>
</paragraph><paragraph id="HFB9AB7BF912A48169DE13F633151431E"><enum>(3)</enum><header>Waiver of
rights</header><text>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.</text>
</paragraph><paragraph id="H346C53E12A7E4DA3B4AFF17E7FA00083"><enum>(4)</enum><header>Plugging and
abandonment</header><text>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.</text>
</paragraph></subsection><subsection id="HAFD7B350E725473ABAFAE851E9B3D652"><enum>(c)</enum><header>Area Partially
Within 100 Miles of Florida</header><text>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.</text>
</subsection><subsection id="HE79345E171C7416AA1422396E71C189D"><enum>(d)</enum><header>Existing Oil and
Gas Lease Defined</header><text>In this section the term <term>existing oil and
gas lease</term> means an oil and gas lease in effect on the date of the
enactment of this Act.</text>
</subsection></section><section id="HD78A4DF647584E9D81C95B6172B07F68"><enum>165.</enum><header>Coastal impact
assistance</header><text display-inline="no-display-inline">Section 31 of the
Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1356a">43 U.S.C. 1356a</external-xref>) is repealed.</text>
</section><section id="HD09DFE9686774F129BC1ED50783EC94F"><enum>166.</enum><header>Oil shale and
tar sands amendments</header>
<subsection id="H4BCA758DEAEA4390935ED22DF13C4D00"><enum>(a)</enum><header>Repeal of
Requirement To Establish Payments</header><text>Section 369(o) of the Energy
Policy Act of 2005 (<external-xref legal-doc="public-law" parsable-cite="pl/109/58">Public Law 109–58</external-xref>; 119 Stat. 728; <external-xref legal-doc="usc" parsable-cite="usc/42/15927">42 U.S.C. 15927</external-xref>) is
repealed.</text>
</subsection><subsection id="H91AB83DD7A504A0AB2E1CF1B6E150044"><enum>(b)</enum><header>Treatment of
Revenues</header><text>Section 21 of the <act-name parsable-cite="MLA">Mineral
Leasing Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/30/241">30 U.S.C. 241</external-xref>) is amended by adding at the end the
following:</text>
<quoted-block act-name="Mineral Leasing Act" id="H69355A50BB1A4386A0E3002E50B2FAE1" style="OLC">
<subsection id="H872D0888FE474E848684D2B8C568F637"><enum>(e)</enum><header>Revenues</header>
<paragraph id="H165DBF880CB149689DFDD9B09A92CD9"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HD40CD96F411844548415BE735B60E646"><enum>(2)</enum><header>Royalty rates
for commercial leases</header>
<subparagraph id="HCB10AF24E9AF4FED8E4338DC97106962"><enum>(A)</enum><header>Royalty
rates</header><text>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.</text>
</subparagraph><subparagraph id="H0EB7E0419F9D41AAA171C1FDED76E6BA"><enum>(B)</enum><header>Reduction</header><text>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.</text>
</subparagraph></paragraph><paragraph id="H9AA21E43045E4D9DBF47463577306CA8"><enum>(3)</enum><header>Disposition of
revenues</header>
<subparagraph id="H169B4A58DFE74D12A0534337B2AE793D"><enum>(A)</enum><header>Deposit</header><text>The
Secretary shall deposit into a separate account in the Treasury all revenues
derived from any oil shale or tar sands lease.</text>
</subparagraph><subparagraph id="H04C768E2FEB94AB09D67441281A84B29"><enum>(B)</enum><header>Allocations to
states and local political subdivisions</header><text>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.</text>
</subparagraph><subparagraph id="H3F1C70A206D047D8AE9F93D7D24678A8"><enum>(C)</enum><header>Transmission of
allocations</header>
<clause id="HD55AAB3B3E0A4B2A90983269E30002DC"><enum>(i)</enum><header>In
general</header><text>Not later than the last business day of the month after
the month in which the revenues were received, the Secretary shall
transmit—</text>
<subclause id="H999ED70B280747E59D99D8B56856278B"><enum>(I)</enum><text>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</text>
</subclause><subclause id="H514FA388D00F4228AE1E01E9CD8EADA"><enum>(II)</enum><text>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).</text>
</subclause></clause><clause id="H24893B9B13DD43B3A9BD679B97677460"><enum>(ii)</enum><header>Allocations to
certain county-equivalent political subdivisions</header><text>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.</text>
</clause><clause id="H4EFB71322E5444760004B476AE2D8124"><enum>(iii)</enum><header>Allocations to
municipal political subdivisions</header><text>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.</text>
</clause></subparagraph><subparagraph id="H7FF4C00E9E3C496C94FD66FE29D708F"><enum>(D)</enum><header>Investment of
deposits</header><text>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.</text>
</subparagraph><subparagraph id="HC3303B41C1D44356A9D2D0A147E95381"><enum>(E)</enum><header>Use of
funds</header><text>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.</text>
</subparagraph><subparagraph id="H9EB77D3113FA4199A0C7B8151B9DE77E"><enum>(F)</enum><header>No accounting
required</header><text>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.</text>
</subparagraph></paragraph><paragraph id="HA43C362624444030B49D15842DCFAF00"><enum>(4)</enum><header>Definitions</header><text>In
this subsection:</text>
<subparagraph id="HD0554AC0C8C144A78454EC7DD99B83B9"><enum>(A)</enum><header>County-equivalent
political subdivision</header><text>The term <term>county-equivalent political
subdivision</term> 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.</text>
</subparagraph><subparagraph id="H0D876F0F51F94DD89B6FDCE57BAE73D4"><enum>(B)</enum><header>Municipal
political subdivision</header><text>The term <term>municipal political
subdivision</term> means a municipality located within and part of a county,
parish, borough in Alaska, or other equivalent subdivision of a
State.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="H5E0CB9FD8B484325972CE0051E2D955B"><enum>167.</enum><header>Availability of
OCS receipts to provide payments under Secure Rural Schools and Community
Self-Determination Act of 2000</header><text display-inline="no-display-inline">Section 9 of the Outer Continental Shelf
Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1338">43 U.S.C. 1338</external-xref>) is amended by inserting after subsection (i), as
added by section 147 of this Act, the following new subsection:</text>
<quoted-block id="H353F53BE5AEA4677B36C53915DF5F5F3" style="OLC">
<subsection id="H07EDD834D22D45E896B06C9527D600EA"><enum>(j)</enum><header>Conditional
Availability of Funds for Payments Under Secure Rural Schools and Community
Self-Determination Act of 2000</header>
<paragraph id="H3596071926194057879FD2F3066C0405"><enum>(1)</enum><header>Availability of
funds</header><text>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 (<external-xref legal-doc="public-law" parsable-cite="pl/106/393">Public Law 106–393</external-xref>; 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.</text>
</paragraph><paragraph id="HF27AB26F144044D285B256A25DF1E61"><enum>(2)</enum><header>Condition on
availability</header><text>OCS Receipts shall be available under paragraph (1)
for a fiscal year only if—</text>
<subparagraph id="HB8136845BD894E469157F4A59D06BD6F"><enum>(A)</enum><text>title I of the
Secure Rural Schools and Community Self-Determination Act of 2000 has been
reauthorized through at least that fiscal year; and</text>
</subparagraph><subparagraph id="HFC9A2A1C21214E8A82ACD39EF482B6AD"><enum>(B)</enum><text>the authority to
initiate projects under titles II and III of such Act has been extended through
at least that fiscal
year.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="H5BEAC660623A4A7D894FFDAD31A2D936"><enum>168.</enum><header>Sense of the
Congress to buy and build American</header>
<subsection id="H8590396D202049DD81533FAA4EE3D1FA"><enum>(a)</enum><header>Buy and Build
American</header><text>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.</text>
</subsection><subsection id="HF2EA1705F05A462A00941C3092C9D500"><enum>(b)</enum><header>Safeguard for
Extraordinary Ability</header><text>Section 30(a) of the Outer Continental
Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1356">43 U.S.C. 1356(a)</external-xref>) is amended in the matter preceding
paragraph (1) by striking <quote>regulations which</quote> and inserting
<quote>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</quote>.</text>
</subsection></section></subtitle><subtitle id="HA28269F2DDF04B409D31F6732E5B49AD"><enum>D</enum><header>Nuclear</header>
<section id="H167D7D9A40654CBA854315A8856800E2"><enum>181.</enum><header>Incentives for
innovative technologies</header>
<subsection id="H47703DE927C94DF0BCCB17986D9444D5"><enum>(a)</enum><header>Definition of
project cost</header><text>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:</text>
<quoted-block id="H7EC3980017194785A046754F4C87F213" style="OLC">
<paragraph id="HB6E696169B4642158200DD6E50EBB472"><enum>(4)</enum><header>Project
cost</header><text>The term <quote>project cost</quote> 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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HFBAA67A56C794761B6F6040070109657"><enum>(b)</enum><header>Terms and
conditions</header><text>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:</text>
<quoted-block id="HD80853BCDBA64066A1D75B4605BED74E" style="OLC">
<subsection id="H8FFE57FE6B9540EFBD58944FCF9CC200"><enum>(b)</enum><header>Specific
appropriation or contribution</header>
<paragraph id="HDF1F7D1D3BF74113A932F1D0380567B"><enum>(1)</enum><header>In
general</header><text>No guarantee shall be made unless—</text>
<subparagraph id="H5FB88EBE14B141918B1C79B782255F6C"><enum>(A)</enum><text>an appropriation
for the cost has been made; or</text>
</subparagraph><subparagraph id="H658752258B4A4962001DA488DBD1A851"><enum>(B)</enum><text>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</text>
</subparagraph><subparagraph id="H2F16C28F301248DCB2D0C81CD39B3DB5"><enum>(C)</enum><text>a combination of
subparagraphs (A) and (B) has been made, that when combined is sufficient to
cover the cost of the obligation.</text>
</subparagraph></paragraph><paragraph id="H549D37EAAFA64B16A14FD28CC187D3D1"><enum>(2)</enum><header>Relation to
other laws</header><text>Section 504(b) of the Federal Credit Reform Act of
1990 (<external-xref legal-doc="usc" parsable-cite="usc/2/661c">2 U.S.C. 661c(b)</external-xref>) shall not apply to a loan guarantee made in accordance
with paragraph
(1)(B).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HE0530AC20540469AB107AAC5CA81E500"><enum>(c)</enum><header>Amount</header><text>Section
1702 of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16512">42 U.S.C. 16512</external-xref>) is amended by striking
subsection (c) and inserting the following:</text>
<quoted-block id="H67E858D3426D409590C231277317A900" style="OLC">
<subsection id="HA724D5C2420F449281B9059C1EB9C04"><enum>(c)</enum><header>Amount</header>
<paragraph id="H9EE4442BD72842A8964B4613E500B063"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HFE19F5D88B1B419891A93F0052664080"><enum>(2)</enum><header>Limitation</header><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1B81B4CF33064C02B2D85852282473D4"><enum>(d)</enum><header>Fees</header><text>Section
1702(h) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16512">42 U.S.C. 16512(h)</external-xref>) is amended by
striking paragraph (2) and inserting the following:</text>
<quoted-block id="H2B4C7214F5FC4A2194C845150342D6B7" style="OLC">
<paragraph id="H1A56C7BD3B4A4E3E00B0D42FDAE98FB7"><enum>(2)</enum><header>Availability</header><text>Fees
collected under this subsection shall—</text>
<subparagraph id="HCC9A87A904854BB2BACA8526AEAFF3FE"><enum>(A)</enum><text>be deposited by
the Secretary into a special fund in the Treasury to be known as the
<quote>Incentives For Innovative Technologies Fund</quote>; and</text>
</subparagraph><subparagraph id="H339F706E62CF41FA8CC949F0DAA83990"><enum>(B)</enum><text>remain available
to the Secretary for expenditure, without further appropriation or fiscal year
limitation, for administrative expenses incurred in carrying out this
title.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="HFAF09DC2D6F646C48BF8388EDC7ED09B"><enum>182.</enum><header>Authorization
for Nuclear Power 2010 Program</header><text display-inline="no-display-inline">Section 952(c) of the Energy Policy Act of
2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16014">42 U.S.C. 16014</external-xref>) is amended by striking paragraphs (1) and (2) and
inserting the following:</text>
<quoted-block id="HE99724E2F70B4A4F8F12D7805636BEF2" style="OLC">
<paragraph id="H9B5E01D8A3FD42BE8C7894D410B92DD"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HFC33986A394E42CAA5B76724190846E7"><enum>(2)</enum><header>Scope of
program</header><text>The Nuclear Power 2010 Program shall be cost-shared with
the private sector and shall support the following objectives:</text>
<subparagraph id="HC9C810D59F1441D1AE1B7DFB009DBB5B"><enum>(A)</enum><text>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.</text>
</subparagraph><subparagraph id="HD4B99E5CAA384BDABE619FAF49C883C1"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="HC40D413EFE8E4811AF9437698EA1DD1E"><enum>(3)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated to the
Secretary to carry out the Nuclear Power 2010 Program:</text>
<subparagraph id="H0EB03CA54B424E2D97D7965386D4AAA6"><enum>(A)</enum><text>$182,800,000 for
fiscal year 2008.</text>
</subparagraph><subparagraph id="H793A34501287403E8EAD459C6FCD1F9"><enum>(B)</enum><text>$159,600,000 for
fiscal year 2009.</text>
</subparagraph><subparagraph id="H92EAEDE29C8945B3A2DC16D0917600D8"><enum>(C)</enum><text>$135,600,000 for
fiscal year 2010.</text>
</subparagraph><subparagraph id="H87D621336555441DAFDCE53288B200E0"><enum>(D)</enum><text>$46,900,000 for
fiscal year 2011.</text>
</subparagraph><subparagraph id="HD09F89143C7B4BE983EB5B1D5018AFC4"><enum>(E)</enum><text>$2,200,000 for
fiscal year
2012.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="HB697E9A81BA14A388541547F2E2EF954"><enum>183.</enum><header>Domestic
manufacturing base for nuclear components and equipment</header>
<subsection id="H724F4E5238674E23870711D0CC5275BC"><enum>(a)</enum><header>Establishment of
interagency working group</header>
<paragraph id="HD164589EC9C24F60B5C5665CA570CED7"><enum>(1)</enum><header>Purposes</header><text display-inline="yes-display-inline">The purposes of this subsection are—</text>
<subparagraph id="H95B1AF64644E40C0B164CF29B0AEABD6"><enum>(A)</enum><text>to increase the
competitiveness of the United States nuclear energy products and services
industries;</text>
</subparagraph><subparagraph id="HE1F9C96E604D49C6BDE340A0076E3CC"><enum>(B)</enum><text>to identify the
stimulus or incentives necessary to cause United States manufacturers of
nuclear energy products to expand manufacturing capacity;</text>
</subparagraph><subparagraph id="H4B6873E8A0E64AE5A0D3458D77DAAADB"><enum>(C)</enum><text>to facilitate the
export of United States nuclear energy products and services;</text>
</subparagraph><subparagraph id="H6160C3021C5249B58FED757F716FC04E"><enum>(D)</enum><text>to reduce the
trade deficit of the United States through the export of United States nuclear
energy products and services;</text>
</subparagraph><subparagraph id="H2FCCD6E4E9824780A44FCE2BABCAF761"><enum>(E)</enum><text>to retain and
create nuclear energy manufacturing and related service jobs in the United
States;</text>
</subparagraph><subparagraph id="H47395678CA6846608705217539ADD426"><enum>(F)</enum><text>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</text>
</subparagraph><subparagraph id="HD0136B03C1CE4B2382C346B004FD3199"><enum>(G)</enum><text>to authorize funds
for increasing United States capacity to manufacture nuclear energy products
and supply nuclear energy services.</text>
</subparagraph></paragraph><paragraph id="H773ADD1CE46240BEB1F171F1FC61AA3"><enum>(2)</enum><header>Establishment</header>
<subparagraph id="H95DBBC74ED8F413F8033006C342FA90"><enum>(A)</enum><text>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.</text>
</subparagraph><subparagraph id="H2666C7D07E954614A0C5EA6FF17498C4"><enum>(B)</enum><text>The Interagency
Working Group shall be composed of—</text>
<clause id="H3D2380DA02124BCBB7408C9D68C8787"><enum>(i)</enum><text>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;</text>
</clause><clause id="HE0410CA6B6B3478FA38C50EA2028A58B"><enum>(ii)</enum><text>representatives
of—</text>
<subclause id="H7356CAF2D4F647E681BAABF590600B"><enum>(I)</enum><text>the
Department of Energy;</text>
</subclause><subclause id="H2097504288ED4DD3A5E7E943BA450386"><enum>(II)</enum><text>the Department of
Commerce;</text>
</subclause><subclause id="H08A13D4295EE4DBBBF6CE27F2BCFF00"><enum>(III)</enum><text>the Department of
Defense;</text>
</subclause><subclause id="HF7FD39E97074444A004208ACD260A11E"><enum>(IV)</enum><text>the Department of
the Treasury;</text>
</subclause><subclause id="HBA815662D4474E338DD4024250AA0059"><enum>(V)</enum><text>the Department of
State;</text>
</subclause><subclause id="H96B80D3CBF26459F8CE14252DB643BCF"><enum>(VI)</enum><text>the Environmental
Protection Agency;</text>
</subclause><subclause id="H1A12AEF84E934FDEB3CA7B65F501F74E"><enum>(VII)</enum><text>the United
States Agency for International Development;</text>
</subclause><subclause id="HA17C4956ADCA4AB2BD5B19005E8B8C82"><enum>(VIII)</enum><text>the
Export-Import Bank of the United States;</text>
</subclause><subclause id="HFD97132BE668493592DA60B6A2F47539"><enum>(IX)</enum><text>the Trade and
Development Agency;</text>
</subclause><subclause id="H08FD409058514C76BFB500A803C0CF8F"><enum>(X)</enum><text>the Small Business
Administration;</text>
</subclause><subclause id="HAC05291A96AF4B259BADC008013BCDCD"><enum>(XI)</enum><text>the Office of the
United States Trade Representative; and</text>
</subclause><subclause id="HA1B2DA3F1D82419BAAB6F2DF6805905F"><enum>(XII)</enum><text>other Federal
agencies, as determined by the President.</text>
</subclause></clause></subparagraph><subparagraph id="H1B9352B00FED44029775B77EC08C1FE8"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H749760C949D04B30006FF7853C004ECB"><enum>(3)</enum><header>Duties of the
interagency working group</header>
<subparagraph id="H9D494F7C23A742329F1278029686FB25"><enum>(A)</enum><text>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—</text>
<clause id="H959844A54877459A9F00E45DA428C400"><enum>(i)</enum><text>increase
electricity generation from nuclear energy sources through development of new
generation facilities;</text>
</clause><clause id="H29BB6BE6A032453298434F76BF9D6FB9"><enum>(ii)</enum><text>improve the
efficiency, safety, and reliability of existing nuclear generating facilities
through modifications; and</text>
</clause><clause id="HD0BBFC00731345D082C33E92FB001144"><enum>(iii)</enum><text>enhance the safe
treatment, handling, storage, and disposal of used nuclear fuel.</text>
</clause></subparagraph><subparagraph id="H9599CD81D9814C3B8D4896C93603606F"><enum>(B)</enum><text>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—</text>
<clause id="H239D5838C3D84B069E325CD575E24DB3"><enum>(i)</enum><text>encourage United
States companies to increase their manufacturing capacity for nuclear energy
products;</text>
</clause><clause id="H9A68FC6A984D41C394CA67D1E0ED9332"><enum>(ii)</enum><text>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;</text>
</clause><clause id="H1594721E6C3A4713B8346C73C06BB005"><enum>(iii)</enum><text>encourage,
through financial incentives, private sector capital investment to expand
manufacturing capacity; and</text>
</clause><clause id="HDBCC9DEC644B41D0924D31BBB951AC41"><enum>(iv)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="H6A854ADACB214DB3849CE739B37128EF"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H9F407483E1364E2F8DA7064F88CBBEB8"><enum>(4)</enum><header>Trade
assistance</header><text>The interagency working group shall encourage the
member agencies of the interagency working group to—</text>
<subparagraph id="HE35A5F8C4B15457C947FC13C367C7C61"><enum>(A)</enum><text>provide technical
training and education for international development personnel and local users
in their own country;</text>
</subparagraph><subparagraph id="H82C8D6BE0C314D3383B5FB3577BEEAEC"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph id="H9B180B20B5D04936B7355DD9D25295C7"><enum>(C)</enum><text>develop nuclear
energy projects in foreign countries;</text>
</subparagraph><subparagraph id="HAC48700EAAF943F9A8ADC807F3CE67F7"><enum>(D)</enum><text>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;</text>
</subparagraph><subparagraph id="HC5CEB42DE85A4D86855398B9056D2576"><enum>(E)</enum><text>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</text>
</subparagraph><subparagraph id="HAEAA5366B5004689BA00DB32E4ED122D"><enum>(F)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H6EE20C0AF82746E6AE1953B6156039D"><enum>(5)</enum><header>Authorization of
appropriations</header><text>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.</text>
</paragraph></subsection><subsection id="HE32B5AFEAB5B4C2F923F49487915697F"><enum>(b)</enum><header>Credit for
qualifying nuclear power manufacturing</header><text>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:</text>
<quoted-block id="HC5312C3105BC4801A495D600CCE2B4BB" style="OLC">
<section id="H2E35F65288FE4DA8961BD16F7011CBB5"><enum>48C.</enum><header>Qualifying
nuclear power manufacturing credit</header>
<subsection id="HE1726021E2314BF4840094CAD966D3BE"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H4A5F9F0E15464E8180F7325D1E1B05B"><enum>(b)</enum><header>Qualified
investment</header>
<paragraph id="H0762228D362840C4A961C273ADB82861"><enum>(1)</enum><header>In
general</header><text>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—</text>
<subparagraph id="H0BAC6B42C62A498D94FD3D57C8944EC"><enum>(A)</enum><text>which is either
part of a qualifying nuclear power manufacturing project or is qualifying
nuclear power manufacturing equipment,</text>
</subparagraph><subparagraph id="H3306250C47B14DDBB48CD2573681F461"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="H33E1BA83E9C84ECAA1DB6F1C084B2E81"><enum>(i)</enum><text>the construction,
reconstruction, or erection of which is completed by the taxpayer, or</text>
</clause><clause id="H8F8EB54C4D3741FA8F576859FC2301A5" indent="up1"><enum>(ii)</enum><text>which is acquired by the taxpayer
if the original use of such property commences with the taxpayer,</text>
</clause></subparagraph><subparagraph id="HD7240959449F4D0400091BB7319731BC"><enum>(C)</enum><text>with respect to
which depreciation (or amortization in lieu of depreciation) is allowable,
and</text>
</subparagraph><subparagraph id="H6271C2C3D82C4111B0EAECF4FBE0655D"><enum>(D)</enum><text>which is placed in
service on or before December 31, 2015.</text>
</subparagraph></paragraph><paragraph id="H88AE845A6F7D496200CDA949FE498462"><enum>(2)</enum><header>Special rule for
certain subsidized property</header><text>Rules similar to section 48(a)(4)
shall apply for purposes of this section.</text>
</paragraph><paragraph id="HCB8E4D3F5D404673B27C2DB80056EDE8"><enum>(3)</enum><header>Certain
qualified progress expenditures rules made applicable</header><text>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.</text>
</paragraph></subsection><subsection id="H4484F897CD19470196B009A9C49DBB38"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="HF6426A9A20FB42D1AD6E1F639063C75C"><enum>(1)</enum><header>Qualifying
nuclear power manufacturing project</header><text>The term <quote>qualifying
nuclear power manufacturing project</quote> 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.</text>
</paragraph><paragraph id="H5FAA824B2E2242A8BAC3FC647002B21"><enum>(2)</enum><header>Qualifying
nuclear power manufacturing equipment</header><text>The term <quote>qualifying
nuclear power manufacturing equipment</quote> 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.</text>
</paragraph><paragraph id="H293BD8B504CE4EB6A489344B820889E3"><enum>(3)</enum><header>Project</header><text>The
term <quote>project</quote> includes any building constructed to house
qualifying nuclear power manufacturing
equipment.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H02930F45865249C5A7557E84898335C3"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="H2B1888118A134F4D006CE461E1C50415"><enum>(1)</enum><header>Additional
investment credit</header><text>Section 46 of such Code is amended—</text>
<subparagraph id="H4C2F12DD4361404590797C6D01B5AA7C"><enum>(A)</enum><text>by striking
<quote>and</quote> at the end of paragraph (3);</text>
</subparagraph><subparagraph id="H079D786BD8FA47689909D5CAE502636"><enum>(B)</enum><text>by striking the
period at the end of paragraph (4) and inserting <quote>, and</quote>;
and</text>
</subparagraph><subparagraph id="H4A706304C1CC45248CB7B988060668FB"><enum>(C)</enum><text>by inserting after
paragraph (4) the following new paragraph:</text>
<quoted-block id="H38071DD2DC0349BD92EE6206BC397395" style="OLC">
<paragraph id="HE60D848936614044B22BE18C596DFBF4"><enum>(5)</enum><text>the qualifying
nuclear power manufacturing
credit.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H0C3EA05FE7A244BCBBD9F268BEA21989"><enum>(2)</enum><header>Application of
section 49</header><text>Subparagraph (C) of section 49(a)(1) of such Code is
amended by—</text>
<subparagraph id="HAE19D9D144794AF5A0F8662EA7ED233F"><enum>(A)</enum><text>by striking
<quote>and</quote> at the end of clause (iii);</text>
</subparagraph><subparagraph id="HDC27EAB883DF4B6BAAFDA963090F90"><enum>(B)</enum><text>by striking the
period at the end of clause (iv) and inserting <quote>, and</quote>; and</text>
</subparagraph><subparagraph id="HAFC33A3013604499AE516F12AABA38CB"><enum>(C)</enum><text>by inserting after
clause (iv) the following new clause:</text>
<quoted-block id="HC49062F767614109ADC0252084D93F12" style="OLC">
<clause id="HBB4E84F58830445E9F8D397779497D79"><enum>(v)</enum><text>the basis of any
property which is part of a qualifying nuclear power equipment manufacturing
project under section
48C.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H62BB1E68264B48F2BC2774D48DB1FBD"><enum>(3)</enum><header>Table of
sections</header><text>The table of sections preceding section 46 of such Code
is amended by inserting after the item for section 48B the following new
line:</text>
<quoted-block display-inline="no-display-inline" id="HB055B6CD7FA744B89CF795DE25F654EF" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 48C. Qualifying nuclear power
manufacturing
credit.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="H3FA3C6B287E447CABD7079DEA855D443"><enum>(d)</enum><header>Effective
date</header><text display-inline="yes-display-inline">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.</text>
</subsection></section><section id="H4143735719384FADAF8B1769EDD20998"><enum>184.</enum><header>Nuclear energy
workforce</header><text display-inline="no-display-inline">Section 1101 of the
Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16411">42 U.S.C. 16411</external-xref>) is amended—</text>
<paragraph id="H4FDCC5EAA9E5491AB161884786A2FFAF"><enum>(1)</enum><text>by redesignating
subsection (d) as subsection (e); and</text>
</paragraph><paragraph id="H0DBC117C52B1403EB276B3B365321963"><enum>(2)</enum><text>by inserting after
subsection (c) the following:</text>
<quoted-block id="H591144126DF0411DA44E3ECC877355D8" style="OLC">
<subsection id="H5BE98E63E3DD47A7BFE0399FC0026D5"><enum>(d)</enum><header>Workforce
training</header>
<paragraph id="H58A9773B09A446FD86A3E1D0F6B38B4"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H2653F031EBD4452E89C3296DBA5E0D1"><enum>(2)</enum><header>Consultation</header><text>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.</text>
</paragraph><paragraph id="H3B5AAF9739134D27A29167B3CCD8B9F"><enum>(3)</enum><header>Authorization of
appropriations</header><text>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.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="HB4791ACC8B7145EF917BC476DCA70761"><enum>185.</enum><header>National
Nuclear Energy Council</header>
<subsection id="H58F29BE490784CFC8E898C6CEC337DDF"><enum>(a)</enum><header>In
general</header>
<paragraph id="HAE2D540D8A1E4B4BB2C15754BF7B12FF"><enum>(1)</enum><text>The Secretary of
Energy shall establish a National Nuclear Energy Council (hereinafter the
<quote>Council</quote>).</text>
</paragraph><paragraph id="HA5C520FFC3B14C9D942D3BC694CBAA5E"><enum>(2)</enum><text>The National
Nuclear Energy Council shall be subject to the requirements of the Federal
Advisory Committee Act (5 U.S.C. Appendix 2).</text>
</paragraph></subsection><subsection id="H99C626CAF7C84B73AE1CE5B33830C703"><enum>(b)</enum><header>Purpose</header><text>The
National Nuclear Energy Council shall—</text>
<paragraph id="HD1947DBD551244E2BF49178297DE38D0"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="H1C900AC5997948FB8500BA265502D595"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="HB2E6E0C84889456A00622295C6B94634"><enum>(c)</enum><header>Membership and
organization</header>
<paragraph id="HB4BAC22F085648FF9339FFC34BDC5237"><enum>(1)</enum><text>The members of the
Council shall be appointed by the Secretary of Energy.</text>
</paragraph><paragraph id="HEF8AC5E073BC4F1DA352B6C27D69C019"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="H9BCC5C60A1684E8F0053A7C6AE9200C6"><enum>(3)</enum><text>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.</text>
</paragraph><paragraph id="H25C5D9E3AA724F8582B4D400F200D587"><enum>(4)</enum><text>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.</text>
</paragraph><paragraph id="HB6096E4442C547AEB02E00E36F8EC490"><enum>(5)</enum><text>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.</text>
</paragraph></subsection><subsection id="H9F2813567917427EB22917B3720017C1"><enum>(d)</enum><header>Meetings</header>
<paragraph id="H96243C00DC62458BB66E8C31F98700BC"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="HE88D64BAFA0A4C1D8FFA8B56BE5CE215"><enum>(2)</enum><text>No meeting of the
Council shall be held unless the Government Cochairman approves the agenda
thereof, approves the calling thereof, and is present thereat.</text>
</paragraph><paragraph id="H84615EB184E749CEBC486641675C9F1F"><enum>(3)</enum><text>The time and place
of all Council meetings shall be given general publicity and such meetings
shall be open to the public.</text>
</paragraph></subsection><subsection id="H236C0C6CF8474A8E9B63337E0037B825"><enum>(e)</enum><header>Studies by the
council</header>
<paragraph id="H22BDC529BEC24A7EA6112E87DFB4D353"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="H85845942AD6E479E8CA421E0EC7DF885"><enum>(2)</enum><text>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.</text>
</paragraph><paragraph id="HE8A8930F5DF74F1DBEFCFD5773F7BB01"><enum>(3)</enum><text>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.</text>
</paragraph></subsection></section><section id="HF0926813415843CCA861B871415232E0"><enum>186.</enum><header>Nuclear waste
management</header>
<subsection id="H7357F368C5154C9EAB5B617356FACC21"><enum>(a)</enum><header>High level waste
authority</header>
<paragraph id="H13DAA4ADD6EC4695927B3CC1C5AD7ECA"><enum>(1)</enum><header>Establishment</header><text display-inline="yes-display-inline">Not later than the earlier of—</text>
<subparagraph id="H9174F86D73514884A06C97BAE4C94B4E"><enum>(A)</enum><text>90 days after the
submittal of a license application for a repository at Yucca Mountain;
or</text>
</subparagraph><subparagraph id="H5E6746156CFB4587B1A640F318A1747C"><enum>(B)</enum><text>1 year after the
date of enactment of this Act,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">the
President shall establish a High Level Waste Authority (in this section
referred to as the <quote>Authority</quote>).</continuation-text></paragraph><paragraph id="HC8343B3F96994D0F91BB1188598EB653"><enum>(2)</enum><header>Duties</header><text>The
Authority—</text>
<subparagraph id="H2D039A0BCD314A1890BECCB2783950"><enum>(A)</enum><text>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));</text>
</subparagraph><subparagraph id="HBE2643C75E734A4EBF8D324C9B610700"><enum>(B)</enum><text>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;</text>
</subparagraph><subparagraph id="H304D5106D7D34B97B90806C930CD1729"><enum>(C)</enum><text>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</text>
</subparagraph><subparagraph id="HABC96FB562054CCD91255607A8A31C67"><enum>(D)</enum><text>may negotiate with
willing host communities or States for supporting facilities and
activities.</text>
</subparagraph></paragraph><paragraph id="H8E7F8B6CEE704E29BE1B91B0A0C3F7D"><enum>(3)</enum><header>Membership</header><text>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—</text>
<subparagraph id="HA8B89241A2EA425C8090E210089DA073"><enum>(A)</enum><text>are United States
citizens;</text>
</subparagraph><subparagraph id="H6A719310E4E642E79CCC7908F79C4CCF"><enum>(B)</enum><text>have experience in
nuclear industry corporate management; and</text>
</subparagraph><subparagraph id="HA7DCFDD3AAA54499918479292D54E973"><enum>(C)</enum><text>have large
corporation management expertise.</text>
</subparagraph></paragraph><paragraph id="H53E2F65C7B604798A56F00F72E40E054"><enum>(4)</enum><header>Terms</header>
<subparagraph id="H3630997152B0421BBC914B6008004552"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="H38C8A109D6634233AD4EF9A66F41E901"><enum>(B)</enum><header>Initial
terms</header><text>Of the individuals appointed initially to the
Authority—</text>
<clause id="HDAB36A0A71D84193BA9ECA30ACE521F9"><enum>(i)</enum><text>2
shall be appointed for an initial term of 5 years;</text>
</clause><clause id="H640B327D8B7F4268B908565978588762"><enum>(ii)</enum><text>2
shall be appointed for an initial term of 4 years;</text>
</clause><clause id="H5447D6CA70874E18B58C4B33C497B34C"><enum>(iii)</enum><text>2
shall be appointed for an initial term of 3 years; and</text>
</clause><clause id="HEB85C49BFA494B0C84B9BE237B2BF4FC"><enum>(iv)</enum><text>1
shall be appointed for an initial term of 2 years.</text>
</clause></subparagraph><subparagraph id="H92EBA7CA4E714D82B82261AED561F93E"><enum>(C)</enum><header>Vacancies</header><text>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.</text>
</subparagraph></paragraph><paragraph id="HBEAD7A3ED280439EA381823627BB74E6"><enum>(5)</enum><header>Travel expenses
and per diem</header><text>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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/57">chapter 57</external-xref> of title 5, United States Code, for each day on
which they are engaged in the business of the Authority.</text>
</paragraph><paragraph id="H463340077ECA403D97A2CD724291CF22"><enum>(6)</enum><header>Report to
Congress</header><text>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.</text>
</paragraph></subsection><subsection id="H9669FABBA3244D799246EFFC1EB0094"><enum>(b)</enum><header>Recycling
regulations</header><text>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.</text>
</subsection><subsection id="H0DE5220E85F0448B87E16C9976907982"><enum>(c)</enum><header>Funding</header><text>The
Authority’s activities shall be funded through—</text>
<paragraph id="H3C592C13C95B479480619084D7E96847"><enum>(1)</enum><text display-inline="yes-display-inline">the Nuclear Waste Fund established under
section 302(c) of the Nuclear Waste Policy Act of 1982 (42 U.S.C.
10222(c));</text>
</paragraph><paragraph id="H1771E9C9264D4348AFD07282E4C7C391"><enum>(2)</enum><text>appropriations
authorized under subsection (e); and</text>
</paragraph><paragraph id="H08E36AF49EA2427A94B0ECDE5FC785C"><enum>(3)</enum><text>any contributions
provided by State or local governments or from the private sector.</text>
</paragraph></subsection><subsection id="H1EDB6F57785A4B74A52E4843171D03F7"><enum>(d)</enum><header>Research and
development</header><text>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.</text>
</subsection><subsection id="H59DD36B6002446E8899154DA07715111"><enum>(e)</enum><header>Authorization of
appropriations</header><text>There are authorized to be appropriated to the
Secretary of Energy for carrying out this section such sums as may be
necessary.</text>
</subsection></section></subtitle><enum>II</enum><header>Increase Our
Utilization Efficiency</header>
<subtitle id="HE54A76DBC2294011BF80EFB772EFF5D"><enum>A</enum><header>Coal to
Liquids</header>
<section id="HE427982A61D14B6889F33C6C44117FBD"><enum>201.</enum><header>Location of
coal-to-liquid manufacturing facilities</header><text display-inline="no-display-inline">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.</text>
</section><section id="H1407140942074A34AAB8CE2251CDD1FB"><enum>202.</enum><header>Authorization
to conduct research, development, testing, and evaluation of assured domestic
fuels</header><text display-inline="no-display-inline">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.</text>
</section><section id="H855F3B5B469446B692981DACAEA24033"><enum>203.</enum><header>Coal-to-liquid
long-term fuel procurement and Department of Defense development</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/10/2922a">Section 2922a</external-xref> of title 10, United States
Code is amended—</text>
<paragraph id="H047B5F31B9744ADD84E947DC83819EFB"><enum>(1)</enum><text>in subsection
(b)—</text>
<subparagraph id="H5F14587A995A4D62B91CD7B9001FFF98"><enum>(A)</enum><text>by inserting
<quote>(1)</quote> before <quote>The Secretary</quote>; and</text>
</subparagraph><subparagraph id="H8586662B464E489F9F484D81C8EDDA26"><enum>(B)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="HCA6AE6EFEC264AD9A246EDE6DFD6A683" style="OLC">
<paragraph id="H38DCEF5CDFAE405AA1F187FB00BC3732" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H7788EDC9AE934539BF6287BA757D2C43"><enum>(A)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="H1A9207DBEEF64D8AABAC7F4EBB4C66DD" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">In entering into contracts and other
agreements under subparagraph (A), the Secretary shall consider land
availability, testing opportunities, and proximity to raw
materials.</text>
</subparagraph></paragraph><after-quoted-block>; and
</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HA6B300A8C904457FAFA71B34FE259E2C"><enum>(2)</enum><text>in subsection
(d)—</text>
<subparagraph id="HBE5688F436D34518A7A7E3A22460EA5C"><enum>(A)</enum><text>by striking
<quote>Subject to applicable provisions of law, any</quote> and inserting
<quote>Any</quote>;</text>
</subparagraph><subparagraph id="H18170840E4AF4BC1AF9CBD2EDE0102F1"><enum>(B)</enum><text>by inserting after
<quote>covered fuel</quote> the following: <quote>or coal-to-liquid
fuel</quote>; and</text>
</subparagraph><subparagraph id="HA4742D7DE576471100A6A209FBB953C"><enum>(C)</enum><text>by striking
<quote>1 or more years</quote> and inserting <quote>up to 25
years</quote>.</text>
</subparagraph></paragraph></section></subtitle><subtitle id="H3C58CA03C01F4F6E9946022800B2E953"><enum>B</enum><header>Energy tax
provisions</header>
<section display-inline="no-display-inline" id="H7A8FAFFAADEB496BB9C5521841D2F45" section-type="subsequent-section"><enum>211.</enum><header>Short title;
amendment of 1986 Code</header>
<subsection id="HCCE26AA8DED14207818009F2B3FFBE"><enum>(a)</enum><header>Short
title</header><text>This subtitle may be cited as the <quote><short-title>Renewable Energy and Energy Conservation Tax Act of
2008</short-title></quote>.</text>
</subsection><subsection id="H7153563559184C3EBFF3ADC1A6BBB2CC"><enum>(b)</enum><header>Amendment of
1986 Code</header><text>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.</text>
</subsection></section><part id="H791E0CABB77E4CDF877280645C03AC40"><enum>1</enum><header>Production
incentives</header>
<section id="HCDE6551E3E674B9D87A9A0854D9D1ED"><enum>221.</enum><header>Extension and
modification of renewable energy credit</header>
<subsection id="H9D84F9A15A4F49DE951F72F01495BBE"><enum>(a)</enum><header>Extension of
credit</header><text display-inline="yes-display-inline">Each of the following
provisions of section 45(d) (relating to qualified facilities) is amended by
striking <quote>January 1, 2009</quote> and inserting <quote>January 1,
2012</quote>:</text>
<paragraph id="H181746ED4BA54E988901259E729C5E13"><enum>(1)</enum><text>Paragraph
(1).</text>
</paragraph><paragraph id="H233884A4E11A4EDD88926E1E4BF152AC"><enum>(2)</enum><text>Clauses (i) and
(ii) of paragraph (2)(A).</text>
</paragraph><paragraph id="H8B49CC65EF40424690068FFEDDF2CFB4"><enum>(3)</enum><text>Clauses (i)(I) and
(ii) of paragraph (3)(A).</text>
</paragraph><paragraph id="HC51EB218EE024CDEBECA681C45D76CCB"><enum>(4)</enum><text>Paragraph
(4).</text>
</paragraph><paragraph id="H276D0807DD894BD996994EA900C235C5"><enum>(5)</enum><text>Paragraph
(5).</text>
</paragraph><paragraph id="H46C33F4E5384430C801939C5A9664C03"><enum>(6)</enum><text>Paragraph
(6).</text>
</paragraph><paragraph id="H9E10615EE0304517A455197F6058E7F5"><enum>(7)</enum><text>Paragraph
(7).</text>
</paragraph><paragraph id="HE67EBB260A5F4463A7B3007810856710"><enum>(8)</enum><text>Subparagraphs (A)
and (B) of paragraph (9).</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HCD3E2AFF2DC947808E58B2007341797C"><enum>(b)</enum><header>Modification of
Credit Phaseout</header>
<paragraph id="H7CF15329412340869100402B2511113F"><enum>(1)</enum><header>Repeal of
phaseout</header><text>Subsection (b) of section 45 is amended—</text>
<subparagraph id="H35537244A27F4D7DA2FD4D5EBB8D53B3"><enum>(A)</enum><text>by striking
paragraph (1), and</text>
</subparagraph><subparagraph id="HA647B568F9374E6EBC2112D77372D582"><enum>(B)</enum><text>by striking
<quote>the 8 cent amount in paragraph (1),</quote> in paragraph (2)
thereof.</text>
</subparagraph></paragraph><paragraph id="H4BC9796EB8A84C7D8B575FC861EDB72F"><enum>(2)</enum><header>Limitation based
on investment in facility</header><text>Subsection (b) of section 45 is amended
by inserting before paragraph (2) the following new paragraph:</text>
<quoted-block id="H9B9C4DB77A264C69BA57FA91B6EB1400" style="OLC">
<paragraph id="HEE00FEC723C94C22B8BE711B1B568775"><enum>(1)</enum><header>Limitation based
on investment in facility</header>
<subparagraph id="HFA3847C75390492481AA39AAF3E2B0E2"><enum>(A)</enum><header>In
general</header><text>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—</text>
<clause id="HBD50597B5F894F84B4E509E5EFA8528F"><enum>(i)</enum><text>the applicable
percentage with respect to such facility, multiplied by</text>
</clause><clause id="HCE70D6E536564E2BA5C7C23C9605D762"><enum>(ii)</enum><text>the eligible
basis of such facility.</text>
</clause></subparagraph><subparagraph id="H9DA40CC4A8024E14A0E1E3233994DD48"><enum>(B)</enum><header>Carryforward of
unused limitation and excess credit</header>
<clause id="HCCBBC54807044171006274D1852B70AC"><enum>(i)</enum><header>Unused
limitation</header><text>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.</text>
</clause><clause id="H63C5BE36060343BAA62269CCCCF699B6"><enum>(ii)</enum><header>Excess
credit</header><text>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.</text>
</clause><clause id="HDFBCA06F3C4A406592AAC208DC74A267"><enum>(iii)</enum><header>Prelimitation
credit</header><text>The term <quote>prelimitation credit</quote> 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).</text>
</clause></subparagraph><subparagraph id="HE086E2E826E745C4B572A139BB165F00"><enum>(C)</enum><header>Applicable
percentage</header><text>For purposes of this paragraph—</text>
<clause id="HA3856BF589B84D00856000C769D6F92"><enum>(i)</enum><header>In
general</header><text>The term <quote>applicable percentage</quote> 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.</text>
</clause><clause id="H03580EEC8E234281BC408CEA90C88E4"><enum>(ii)</enum><header>Method of
prescribing applicable percentages</header><text>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.</text>
</clause><clause id="HE85B9B9092804703BC3F34CA3BFE0011"><enum>(iii)</enum><header>Method of
discounting</header><text>The present value under clause (ii) shall be
determined—</text>
<subclause id="H9AC59CD4D4194ACCBD27DDA0E6A0DD63"><enum>(I)</enum><text>as of the last day
of the 1st year of the 10-year period referred to in clause (ii),</text>
</subclause><subclause id="H4AC9C71144774232A8712CC41E7D1C26"><enum>(II)</enum><text>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</text>
</subclause><subclause id="H478290904F8146F78DB47E6CF84D412B"><enum>(III)</enum><text>by taking into
account the limitation under subparagraph (A) for any year on the last day of
such year.</text>
</subclause></clause></subparagraph><subparagraph id="HD9FD9C674E6F41D4B4418054877900B"><enum>(D)</enum><header>Eligible
basis</header><text>For purposes of this paragraph—</text>
<clause id="HBB8F923887FB40BBA5B34C3D5E90AFEB"><enum>(i)</enum><header>In
general</header><text>The term <quote>eligible basis</quote> means, with
respect to any facility, the sum of—</text>
<subclause id="H8F11E2AF0FFB41E480CFD700C07BE68C"><enum>(I)</enum><text>the basis of such
facility determined as of the time that such facility is originally placed in
service, and</text>
</subclause><subclause id="H1C06FB0C6EC94D40BEB1FDB8FAABB52C"><enum>(II)</enum><text>the portion of
the basis of any shared qualified property which is properly allocable to such
facility under clause (ii).</text>
</subclause></clause><clause id="H18C956E9B7A141EEBE2C74BD2E54394E"><enum>(ii)</enum><header>Rules for
allocation</header><text>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.</text>
</clause><clause id="HA286AFFECBA74A1EAF649FD5B405E2AC"><enum>(iii)</enum><header>Shared
qualified property</header><text>For purposes of this paragraph, the term
<quote>shared qualified property</quote> means, with respect to any facility,
any property described in section 168(e)(3)(B)(vi)—</text>
<subclause id="HD43A5EAC9AF84E43AFC9AE4073FAE577"><enum>(I)</enum><text>which a qualified
facility will require for utilization of such facility, and</text>
</subclause><subclause id="HCFA6CE7EEB17474983CCDF8F7190ADE"><enum>(II)</enum><text>which is not a
qualified facility.</text>
</subclause></clause><clause id="H8405F0472F0141B7B2AD2BA6C52F001E"><enum>(iv)</enum><header>Special rule
relating to geothermal facilities</header><text>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.</text>
</clause></subparagraph><subparagraph id="H0B673F03F2F14498BC48FDE03346FD8D"><enum>(E)</enum><header>Special rule for
first and last year of credit period</header><text>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.</text>
</subparagraph><subparagraph id="HC855D0E56BE848E5AC44E69E4879A9BC"><enum>(F)</enum><header>Election to
treat all facilities placed in service in a year as 1 facility</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H2AEDB72D1F56469D879F6200B7BFD352"><enum>(c)</enum><header>Trash facility
clarification</header><text>Paragraph (7) of section 45(d) is amended—</text>
<paragraph id="H4499AA28552B41F2B490BD7B56FE918"><enum>(1)</enum><text>by
striking <quote>facility which burns</quote> and inserting <quote>facility
(other than a facility described in paragraph (6)) which uses</quote>,
and</text>
</paragraph><paragraph id="H7135818D456B45BCA1B7DF5968F89DAA"><enum>(2)</enum><text>by striking
<quote><header-in-text level="paragraph" style="OLC">combustion</header-in-text></quote>.</text>
</paragraph></subsection><subsection id="HBC50569EB35040FBBF4518CF27C304F0"><enum>(d)</enum><header>Expansion of
biomass facilities</header>
<paragraph id="H9123380C1DF246318E2B70CAC539322F"><enum>(1)</enum><header>Open-loop
biomass facilities</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="HF2E785A6EAD84527AAB667039C198B73" style="OLC">
<subparagraph id="H29B890CFFEBA44B982CAD6084147D943"><enum>(B)</enum><header>Expansion of
facility</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1306C6571B6A400E8EA92536E5F825AF"><enum>(2)</enum><header>Closed-loop
biomass facilities</header><text>Paragraph (2) of section 45(d) is amended by
redesignating subparagraph (B) as subparagraph (C) and inserting after
subparagraph (A) the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H7BDBC8B441454E629BC2FFE6FE04CA48" style="OLC">
<subparagraph id="HB844663770654F530063AC52B58F8F20"><enum>(B)</enum><header>Expansion of
facility</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H0C942121793B4B2CBBDC485C81B201F6"><enum>(e)</enum><header>Effective
date</header>
<paragraph id="H26A571A9CB4D4AC38CA0DF74A68F0471"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HD08C0427E2ED4A72B64062BD416D6F"><enum>(2)</enum><header>Repeal of credit
phaseout</header><text>The amendments made by subsection (b)(1) shall apply to
taxable years ending after December 31, 2008.</text>
</paragraph><paragraph id="H05610532A7B64E598498C320A176176C"><enum>(3)</enum><header>Limitation based
on investment in facility</header><text>The amendment made by subsection (b)(2)
shall apply to property originally placed in service after December 31,
2009.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HFA0466CE8A6848A88DE8C14EABCE957F"><enum>(4)</enum><header>Trash facility
clarification</header><text>The amendments made by subsection (c) shall apply
to electricity produced and sold after the date of the enactment of this
Act.</text>
</paragraph><paragraph id="HAF33F4B4EFE54DEC002E65982530EDE5"><enum>(5)</enum><header>Expansion of
biomass facilities</header><text>The amendments made by subsection (d) shall
apply to property placed in service after the date of the enactment of this
Act.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H982CB0C0231742DCA9E517DDFBFD3759" section-type="subsequent-section"><enum>222.</enum><header>Production credit
for electricity produced from marine renewables</header>
<subsection id="HFC0E999C77014A75903D495790DE8F73"><enum>(a)</enum><header>In
general</header><text>Paragraph (1) of section 45(c) (relating to resources) is
amended by striking <quote>and</quote> at the end of subparagraph (G), by
striking the period at the end of subparagraph (H) and inserting <quote>,
and</quote>, and by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H4A568458D91E4789BBD3000006FF8FA5" style="OLC">
<subparagraph id="HA0C20093C39B44DCBD6F3556A73B5082"><enum>(I)</enum><text display-inline="yes-display-inline">marine and hydrokinetic renewable
energy.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" id="H0173F35BC794459A9086B0BFBE589C2"><enum>(b)</enum><header>Marine
renewables</header><text>Subsection (c) of section 45 is amended by adding at
the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HD4CF0383B4E74618AF58CA82A7E9D935" style="OLC">
<paragraph commented="no" id="HFA6AB2815A76402EA09446E7132781C0"><enum>(10)</enum><header>Marine and
hydrokinetic renewable energy</header>
<subparagraph id="H597C00F002634B91AB18ED2D2668EAB0"><enum>(A)</enum><header>In
general</header><text>The term <term>marine and hydrokinetic renewable
energy</term> means energy derived from—</text>
<clause display-inline="no-display-inline" id="H62A2543307AC44E4877345A76002D53"><enum>(i)</enum><text>waves, tides, and
currents in oceans, estuaries, and tidal areas,</text>
</clause><clause id="H1321001921024FDB8C855B030079D7EF"><enum>(ii)</enum><text>free flowing
water in rivers, lakes, and streams,</text>
</clause><clause id="HCCB49AF366C94A6289AF3D1DC9971B1"><enum>(iii)</enum><text>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</text>
</clause><clause id="HAAB8DC01D8F44D738416FBC2C2612EF2"><enum>(iv)</enum><text>differentials in
ocean temperature (ocean thermal energy conversion).</text>
</clause></subparagraph><subparagraph id="H2B988F2673564F08994FB7C656762F00"><enum>(B)</enum><header>Exceptions</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H75520DFCEA5E48A79D22A93C02A22800"><enum>(c)</enum><header>Definition of
facility</header><text>Subsection (d) of section 45 is amended by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H161563F3D4F44246A3B1052C2E73D5A2" style="OLC">
<paragraph id="HAB0F7DDD3CAB4DC49675E86D5DAF6F86"><enum>(11)</enum><header>Marine and
hydrokinetic renewable energy facilities</header><text display-inline="yes-display-inline">In the case of a facility producing
electricity from marine and hydrokinetic renewable energy, the term
<term>qualified facility</term> means any facility owned by the
taxpayer—</text>
<subparagraph id="H0D437A1073A548A08D60047D6272E59E"><enum>(A)</enum><text display-inline="yes-display-inline">which has a nameplate capacity rating of at
least 150 kilowatts, and</text>
</subparagraph><subparagraph id="HC5A9F1D46F1846548D00ADCCA961DAE0"><enum>(B)</enum><text>which is
originally placed in service on or after the date of the enactment of this
paragraph and before January 1,
2012.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD7FC3830A7A644468137F7456410BCE"><enum>(d)</enum><header>Credit
rate</header><text>Subparagraph (A) of section 45(b)(4) is amended by striking
<quote>or (9)</quote> and inserting <quote>(9), or (11)</quote>.</text>
</subsection><subsection commented="no" id="H334A75B250A5495DA5993CB1A9022BDB"><enum>(e)</enum><header>Coordination
with small irrigation power</header><text>Paragraph (5) of section 45(d), as
amended by section 221(a), is amended by striking <quote>January 1,
2012</quote> and inserting <quote>the date of the enactment of paragraph
(11)</quote>.</text>
</subsection><subsection id="H7C1C03C4F79642FE8D142D7C2E1FCFDC"><enum>(f)</enum><header>Effective
date</header><text>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.</text>
</subsection></section><section display-inline="no-display-inline" id="HDEEF148EB17644608E3500215C945385" section-type="subsequent-section"><enum>223.</enum><header>Extension of
electricity production tax credit to electricity produced from the production
of substitute natural gas from refined coal or petcoke</header>
<subsection id="H5745B90982F041B4A8CA523645FDBB9F"><enum>(a)</enum><header>Refined
coal</header><text display-inline="yes-display-inline">Clauses (i) and (ii) of
<external-xref legal-doc="usc" parsable-cite="usc/26/45">section 45(c)(7)(A)</external-xref> of the Internal Revenue Code of 1986 (defining refined
coal) are amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HA9C38BB089D4492785D2B2481356ECA1" style="OLC">
<clause id="H3CB2DD2DD34B4B499BF8031D05854306"><enum>(i)</enum><text display-inline="yes-display-inline">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,</text>
</clause><clause id="HDF64E0A2813A46ED9065944D5D651F8C"><enum>(ii)</enum><text>is sold by the
taxpayer with the reasonable expectation that it will be used for the purpose
of producing steam, heat, or
electricity,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HEFB0DE74A6944F939E17AB208C3B1EE8"><enum>(b)</enum><header>Special rules
relating to refined coal production facilities</header><text display-inline="yes-display-inline">Subparagraph (A) of section 45(e)(8) of
such Code (determination of credit amount) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H5B70CB54F26E4D949DCDDB805CC87F3C" style="OLC">
<subparagraph id="HD5CFCEB16FB044D78BFBACEF28600"><enum>(A)</enum><header>Determination of
credit amount</header><text display-inline="yes-display-inline">In the case of
a producer of refined coal, the credit determined under this section (without
regard to this paragraph) for any taxable year—</text>
<clause id="HE58B6C9F128147DCB9718479649913FA"><enum>(i)</enum><text display-inline="yes-display-inline">shall be—</text>
<subclause display-inline="no-display-inline" id="H4C3A5A11A4D04301B898EDC67370A9E9"><enum>(I)</enum><text>in the case of the
production of electricity, be 2.0 cents multiplied by the kilowatt hours of
electricity produced, and</text>
</subclause><subclause id="HE64D416AA7074507A584571BE67D2537"><enum>(II)</enum><text>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</text>
</subclause></clause><clause id="H70673D80B9C44173A900009150EE009E"><enum>(ii)</enum><text>for electricity
or refined coal (as the case may be)—</text>
<subclause id="H4CD7264F227C493EA25F165CD5006BE5"><enum>(I)</enum><text>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</text>
</subclause><subclause id="HBD99A4F0A2534DBBBFE9A9D4EB9C86EF"><enum>(II)</enum><text>sold by the
taxpayer to an unrelated person during such 10-year period and such taxable
year.</text>
</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H87D7266E47B44760A83B8F2711CD4898"><enum>(c)</enum><header>Inflation
adjustment</header><text display-inline="yes-display-inline">Section 45(b)(2)
of such Code (related to credit and phaseout adjustment based on inflation) is
amended by—</text>
<paragraph id="HEFB48E5D62E548C087D1E6CCFB3848EF"><enum>(1)</enum><text>inserting
<quote>and the 40 cents per million BTU amount</quote> after <quote>$4.375
amount</quote>, and</text>
</paragraph><paragraph id="H2A1C20EEA65046F3B4CE61AF7000CAA3"><enum>(2)</enum><text>striking
<quote>and</quote> after <quote>subsection (e)(8)(A),</quote> and inserting
<quote>the $4.375 amount</quote>.</text>
</paragraph></subsection><subsection id="H8C21A17B1B8D4A48ABBD625E3600169C"><enum>(d)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to refined coal produced and sold after December 31,
2010.</text>
</subsection></section><section id="HBF4264AAB493426B818B339D19D8DE7D"><enum>224.</enum><header>Extension and
modification of energy credit</header>
<subsection id="HD4C2E4AC2D83472081C736293EB639BE"><enum>(a)</enum><header>Extension of
credit</header>
<paragraph id="H3DCADA3D14334697B35C007039E54175"><enum>(1)</enum><header>Solar energy
property</header><text>Paragraphs (2)(A)(i)(II) and (3)(A)(ii) of section 48(a)
(relating to energy credit) are each amended by striking <quote>January 1,
2009</quote> and inserting <quote>January 1, 2017</quote>.</text>
</paragraph><paragraph id="H184C2948CA794FC299A0DC8CC93E9623"><enum>(2)</enum><header>Fuel cell
property</header><text>Subparagraph (E) of section 48(c)(1) (relating to
qualified fuel cell property) is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2016</quote>.</text>
</paragraph></subsection><subsection id="H1DE6358F513345C78383DFE4B8CE75F9"><enum>(b)</enum><header>Allowance of
energy credit against alternative minimum tax</header><text>Subparagraph (B) of
section 38(c)(4) (relating to specified credits) is amended by striking
<quote>and</quote> at the end of clause (iii), by striking the period at the
end of clause (iv) and inserting <quote>, and</quote>, and by adding at the end
the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H2393864DFADA4DEFA41B8825E5C9100" style="OLC">
<clause id="H4AEA6949785E466CA6D2CADD206B4D50"><enum>(v)</enum><text>the credit
determined under section 46 to the extent that such credit is attributable to
the energy credit determined under section
48.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HA8193F7710DF42F49CC4EB6E7C425579"><enum>(c)</enum><header>Increase of
credit limitation for fuel cell property</header><text>Subparagraph (B) of
section 48(c)(1) is amended by striking <quote>$500</quote> and inserting
<quote>$1,500</quote>.</text>
</subsection><subsection id="H3F415CF32B544F9DA8AEA927591B3684"><enum>(d)</enum><header>Public electric
utility property taken into account</header>
<paragraph id="H8408695608D1476900CC2B002EB8DC87"><enum>(1)</enum><header>In
general</header><text>Paragraph (3) of section 48(a) is amended by striking the
second sentence thereof.</text>
</paragraph><paragraph id="H6C9F318941854CB59802B3F57D9630F"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="H79FE7713FD7D416F838E51E869D665B"><enum>(A)</enum><text>Paragraph (1) of
section 48(c) is amended by striking subparagraph (D) and redesignating
subparagraph (E) as subparagraph (D).</text>
</subparagraph><subparagraph id="H6DE9C76C6CBB4079B9FFA536CE8AAD2"><enum>(B)</enum><text display-inline="yes-display-inline">Paragraph (2) of section 48(c) is amended
by striking subparagraph (D) and redesignating subparagraph (E) as subparagraph
(D).</text>
</subparagraph></paragraph></subsection><subsection id="H01997D7CF09948EDBFEAD9D29D26EFC5"><enum>(e)</enum><header>Effective
date</header>
<paragraph id="H2DE54436A2354C239468AD55574E1530"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HEB7D4563A8514948B0863789D82BEE40"><enum>(2)</enum><header>Allowance
against alternative minimum tax</header><text>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.</text>
</paragraph><paragraph id="H93EC817AA38341B687E4AFFE89EFD9"><enum>(3)</enum><header>Increase in
limitation for fuel cell property</header><text>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 <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> 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).</text>
</paragraph><paragraph id="H716C24020F7A480ABF9C588605C1B200"><enum>(4)</enum><header> Public electric
utility property</header><text display-inline="yes-display-inline">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 <external-xref legal-doc="usc" parsable-cite="usc/26/48">section 48(m)</external-xref> 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).</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H78C349004C544E8C8B00FDB067E6A113"><enum>225.</enum><header>New clean
renewable energy bonds</header>
<subsection id="H003C7B7C1D944A3CBD9200278ECBAF6F"><enum>(a)</enum><header>In
general</header><text>Part IV of subchapter A of chapter 1 (relating to credits
against tax) is amended by adding at the end the following new subpart:</text>
<quoted-block display-inline="no-display-inline" id="H82B5052328DB4152B3A89EDEE00EC2C" style="OLC">
<subpart id="H2BD249EF4258466489DF7B6821560196"><enum>I</enum><header>Qualified tax
credit bonds</header>
<toc container-level="subpart-container" idref="H2BD249EF4258466489DF7B6821560196" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H8EFBA818A1F54C25823DCC91AE9E9767" level="section">Sec. 54A. Credit to holders of qualified tax credit
bonds.</toc-entry>
<toc-entry idref="HB5E30AB0E2724D5B80CD39AD0014A69" level="section">Sec. 54B. New clean renewable energy bonds.</toc-entry>
</toc>
<section display-inline="no-display-inline" id="H8EFBA818A1F54C25823DCC91AE9E9767" section-type="subsequent-section"><enum>54A.</enum><header>Credit to holders of
qualified tax credit bonds</header>
<subsection id="H6E6A58B2000E4A20A727F5219391AF2C"><enum>(a)</enum><header>Allowance of
credit</header><text>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.</text>
</subsection><subsection id="H60510F6C87BA422F89FA6CFEE158BC83"><enum>(b)</enum><header>Amount of
credit</header>
<paragraph id="HB593A96D84C741B780894034B5303BB"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H08403A49ABFC4C9888F6078B51C26FEE"><enum>(2)</enum><header>Annual
credit</header><text>The annual credit determined with respect to any qualified
tax credit bond is the product of—</text>
<subparagraph id="H8D91ED46C8BA4EC8B911B274A130487"><enum>(A)</enum><text>the applicable
credit rate, multiplied by</text>
</subparagraph><subparagraph id="H70459A6DF1E14CCF8C00F11592586828"><enum>(B)</enum><text>the outstanding
face amount of the bond.</text>
</subparagraph></paragraph><paragraph id="H586F11E1F0B64FD881B794CB57CF1331"><enum>(3)</enum><header>Applicable
credit rate</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H26629B56B15A413BA10000C550EF4057"><enum>(4)</enum><header>Special rule for
issuance and redemption</header><text>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.</text>
</paragraph></subsection><subsection id="H5260C315A6924C5E82E43D731834F41D"><enum>(c)</enum><header>Limitation based
on amount of tax</header>
<paragraph id="H443C67ECDE754EAC9623833BB8D8A700"><enum>(1)</enum><header>In
general</header><text>The credit allowed under subsection (a) for any taxable
year shall not exceed the excess of—</text>
<subparagraph id="HFC35F3BD9BB347BAA6A684AAB1BFCD92"><enum>(A)</enum><text>the sum of the
regular tax liability (as defined in section 26(b)) plus the tax imposed by
section 55, over</text>
</subparagraph><subparagraph id="H3B1738F59C1C42A2BAF1E88500C975E5"><enum>(B)</enum><text>the sum of the
credits allowable under this part (other than subpart C and this
subpart).</text>
</subparagraph></paragraph><paragraph id="H5BFB087C12AD461D9E0000D377009D38"><enum>(2)</enum><header>Carryover of
unused credit</header><text display-inline="yes-display-inline">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).</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H3BC97804DBC3427AB4D10042007D88E4"><enum>(d)</enum><header>Qualified tax
credit bond</header><text>For purposes of this section—</text>
<paragraph commented="no" id="H3EB3DE31F8AE4A199586735F24D8F955"><enum>(1)</enum><header>Qualified tax
credit bond</header><text>The term <term>qualified tax credit bond</term> 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).</text>
</paragraph><paragraph display-inline="no-display-inline" id="H9950B26AEEFF452B95C2ECA67BC039E"><enum>(2)</enum><header>Special rules
relating to expenditures</header>
<subparagraph id="H2C838AC1F17F43A69890A48FA450040"><enum>(A)</enum><header>In
general</header><text>An issue shall be treated as meeting the requirements of
this paragraph if, as of the date of issuance, the issuer reasonably
expects—</text>
<clause id="HCE4E46705D8B41F3BFCA6D5BF6888E01"><enum>(i)</enum><text>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</text>
</clause><clause id="H81B40F8B4449423E83681CEBFB27F300"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><subparagraph id="HE55D430640DE49E4A34274C848D4A402"><enum>(B)</enum><header>Failure to spend
required amount of bond proceeds within 3 years</header>
<clause id="HC1FEB301A9044598AA9C64CA34C88848"><enum>(i)</enum><header>In
general</header><text>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.</text>
</clause><clause id="H4EF321441F4E44E1A848F724909DF1BC"><enum>(ii)</enum><header>Expenditure
period</header><text>For purposes of this subpart, the term <term>expenditure
period</term> 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).</text>
</clause><clause id="HDF44A1D895C0421699A2F2F78C0800A4"><enum>(iii)</enum><header>Extension of
period</header><text>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.</text>
</clause></subparagraph><subparagraph commented="no" id="HB56813F2844A4D76985B9900C37C00F9"><enum>(C)</enum><header>Qualified
purpose</header><text>For purposes of this paragraph, the term <term>qualified
purpose</term> means a purpose specified in section 54B(a)(1).</text>
</subparagraph><subparagraph commented="no" id="HE8AD14419A194EA6BF7634ABA7484122"><enum>(D)</enum><header>Reimbursement</header><text display-inline="yes-display-inline">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—</text>
<clause commented="no" id="H63C28E0685FD46B6AEE335F7EF8266FA"><enum>(i)</enum><text>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,</text>
</clause><clause commented="no" id="H35D7BA569B7A4A5AB6F5BEE8F9BE3EBC"><enum>(ii)</enum><text>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</text>
</clause><clause commented="no" id="HBCC455D9CCB74BFB80CDB3275BF53FEA"><enum>(iii)</enum><text>the
reimbursement is made not later than 18 months after the date the original
expenditure is paid.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF6AC28C2A2C24F17BDAA3BBDC58D002D"><enum>(3)</enum><header>Reporting</header><text display-inline="yes-display-inline">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).</text>
</paragraph><paragraph id="H123400E66B6A4451B5B16FD9C448060"><enum>(4)</enum><header>Special rules
relating to arbitrage</header>
<subparagraph id="H001EBF7CBEB742E19873FEE99B02DEB9"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="H1E42976866BD4CA68D494F2B11EC4114"><enum>(B)</enum><header>Special rule for
investments during expenditure period</header><text>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.</text>
</subparagraph><subparagraph id="H736EAA3C597B4EA0BDD3DEB7627399FD"><enum>(C)</enum><header>Special rule for
reserve funds</header><text>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—</text>
<clause id="HFEF13FE2D6A546D0A433F5EDA49DD992"><enum>(i)</enum><text display-inline="yes-display-inline">such fund is funded at a rate not more
rapid than equal annual installments,</text>
</clause><clause id="H70B5161CD326437094A4B858D005A9A5"><enum>(ii)</enum><text display-inline="yes-display-inline">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</text>
</clause><clause id="HECBF48A0CDE34E9CB52C2CF7B946541E"><enum>(iii)</enum><text>the yield on
such fund is not greater than the discount rate determined under paragraph
(5)(B) with respect to the issue.</text>
</clause></subparagraph></paragraph><paragraph id="HF6414D771237498B9518D8FF5CC70059"><enum>(5)</enum><header>Maturity
limitation</header>
<subparagraph id="H2B75073F386B4E30BA65B2B5E1906388"><enum>(A)</enum><header>In
general</header><text>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).</text>
</subparagraph><subparagraph id="H4F9277488FA9491A965787D8FB1E00B9"><enum>(B)</enum><header>Maximum
term</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="H49E9457E021E4611B1263975D0CCDADD"><enum>(6)</enum><header>Prohibition on
financial conflicts of interest</header><text>An issue shall be treated as
meeting the requirements of this paragraph if the issuer certifies that—</text>
<subparagraph id="H9D9A86F63D2E47A1A8276DFF2988CDA8"><enum>(A)</enum><text>applicable State
and local law requirements governing conflicts of interest are satisfied with
respect to such issue, and</text>
</subparagraph><subparagraph id="H3D104AE443B14BCE882E00A350C2B983"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="H665649BFF9B64144001175347122018E"><enum>(e)</enum><header>Other
definitions</header><text>For purposes of this subchapter—</text>
<paragraph id="H934C9C6184884A7FAC397EE7CE4DA6D"><enum>(1)</enum><header>Credit allowance
date</header><text>The term <term>credit allowance date</term> means—</text>
<subparagraph id="H92DC734951934C05A34405366B15DE19"><enum>(A)</enum><text>March 15,</text>
</subparagraph><subparagraph id="H7DFC925A1371442593E55D00CE8900D0"><enum>(B)</enum><text>June 15,</text>
</subparagraph><subparagraph id="H215FB30DAA8E4F10A3263108F3D8BF00"><enum>(C)</enum><text>September 15,
and</text>
</subparagraph><subparagraph id="H94A8ADAE2AC84D73AB5CF4DFB45E765B"><enum>(D)</enum><text>December
15.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">Such term
includes the last day on which the bond is outstanding.</continuation-text></paragraph><paragraph id="H55CA0718A7CE49CDB7E7CC3E43AC310"><enum>(2)</enum><header>Bond</header><text>The
term <term>bond</term> includes any obligation.</text>
</paragraph><paragraph id="HD1BB611987954DCB985B1CE6D04D601D"><enum>(3)</enum><header>State</header><text>The
term <term>State</term> includes the District of Columbia and any possession of
the United States.</text>
</paragraph><paragraph id="HF8434607E9444D6F9409A9C6A1B1C0E7"><enum>(4)</enum><header>Available
project proceeds</header><text>The term <term>available project proceeds</term>
means—</text>
<subparagraph id="HF97C0788C0954E3BB79700B34D15E8BD"><enum>(A)</enum><text display-inline="yes-display-inline">the excess of—</text>
<clause id="H263A9BC272954289AB73C887F23BB371"><enum>(i)</enum><text>the proceeds from
the sale of an issue, over</text>
</clause><clause id="HB49DFDD199C44649AE5217F824CF7F7F"><enum>(ii)</enum><text>the issuance
costs financed by the issue (to the extent that such costs do not exceed 2
percent of such proceeds), and</text>
</clause></subparagraph><subparagraph id="H766E471015804C49941B709600C1EF89"><enum>(B)</enum><text>the proceeds from
any investment of the excess described in subparagraph (A).</text>
</subparagraph></paragraph></subsection><subsection id="HCBD8AB1E8E1449F892464B3811032972"><enum>(f)</enum><header>Credit treated
as interest</header><text>For purposes of this subtitle, the credit determined
under subsection (a) shall be treated as interest which is includible in gross
income.</text>
</subsection><subsection id="HBFE257ECEAA441E38D34DDC8FA42208"><enum>(g)</enum><header>S Corporations
and partnerships</header><text>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.</text>
</subsection><subsection id="H351A6D83AE674602B0068078B79D83E5"><enum>(h)</enum><header>Bonds held by
regulated investment companies and real estate investment
trusts</header><text>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.</text>
</subsection><subsection id="H764F35A0204F4ED2832342E3FB7F8F48"><enum>(i)</enum><header>Credits may be
stripped</header><text>Under regulations prescribed by the Secretary—</text>
<paragraph id="H6250CCCA9A404E448B69A018A1E914B1"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HC74908B27C224B078EFDBB87B67DC043"><enum>(2)</enum><header>Certain rules to
apply</header><text>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.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HB5E30AB0E2724D5B80CD39AD0014A69" section-type="subsequent-section"><enum>54B.</enum><header>New clean renewable
energy bonds</header>
<subsection id="HCA2511CFF7574FE4AB6281C2F62B9395"><enum>(a)</enum><header>New clean
renewable energy bond</header><text>For purposes of this subpart, the term
<term>new clean renewable energy bond</term> means any bond issued as part of
an issue if—</text>
<paragraph id="HD17157FBDB0E47C39066AD00FEA183F5"><enum>(1)</enum><text>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,</text>
</paragraph><paragraph id="H265582EAC22F4BCABD00D856BDB4EE59"><enum>(2)</enum><text>the bond is issued
by a qualified issuer, and</text>
</paragraph><paragraph id="HC38497B647894FDCB0FB6FC6283BC5"><enum>(3)</enum><text>the issuer
designates such bond for purposes of this section.</text>
</paragraph></subsection><subsection id="H193104BAD04B4A81939DC296F999AD8F"><enum>(b)</enum><header>Reduced credit
amount</header><text>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.</text>
</subsection><subsection display-inline="no-display-inline" id="HEDCC46ACF47D4E5E9E1CC56171B232E4"><enum>(c)</enum><header>Limitation on
amount of bonds designated</header>
<paragraph id="H5A9649976C524FC9B7FEC214304365"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HDB4DA09414C74057A9701C00A01765F0"><enum>(2)</enum><header>National
limitation on amount of bonds designated</header><text>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—</text>
<subparagraph id="H2235605B20164C8386DC4BFB55BC38DF"><enum>(A)</enum><text>not more than 60
percent thereof may be allocated to qualified projects of public power
providers, and</text>
</subparagraph><subparagraph id="HAA1D4898020C4F5B9D6E79A6F7B7ABCD"><enum>(B)</enum><text>not more than 40
percent thereof may be allocated to qualified projects of cooperative electric
companies.</text>
</subparagraph></paragraph><paragraph id="HEBD2F93D31BD4B01AD58E3A159B0005D"><enum>(3)</enum><header>Method of
allocation</header>
<subparagraph id="H777C545A00BE476390E3F4DFEA88865"><enum>(A)</enum><header>Allocation among
public power providers</header><text>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.</text>
</subparagraph><subparagraph id="HD5E138903FC04D059B8DE3106E67324F"><enum>(B)</enum><header>Allocation among
cooperative electric companies</header><text>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.</text>
</subparagraph></paragraph></subsection><subsection id="H4D9F8BA20D37454BB87258C822606581"><enum>(d)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="HAB99DEAA070D4722801D59DF4EF34E61"><enum>(1)</enum><header>Qualified
renewable energy facility</header><text>The term <term>qualified renewable
energy facility</term> 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.</text>
</paragraph><paragraph id="H9113559780F74341B4750636423E6596"><enum>(2)</enum><header>Public power
provider</header><text display-inline="yes-display-inline">The term
<term>public power provider</term> 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).</text>
</paragraph><paragraph id="HD1C63CBB7E66413DAAB71FC72D144DF9"><enum>(3)</enum><header>Cooperative
electric company</header><text display-inline="yes-display-inline">The term
<term>cooperative electric company</term> means a mutual or cooperative
electric company described in section 501(c)(12) or section
1381(a)(2)(C).</text>
</paragraph><paragraph id="H01A02389F86F42C1B1DFDA6EB014D6E5"><enum>(4)</enum><header>Clean renewable
energy bond lender</header><text display-inline="yes-display-inline">The term
<term>clean renewable energy bond lender</term> 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.</text>
</paragraph><paragraph id="H37D4FD2FF2D04F8B87738D281D5EC2AE"><enum>(5)</enum><header>Qualified
issuer</header><text display-inline="yes-display-inline">The term
<term>qualified issuer</term> 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.</text>
</paragraph></subsection></section></subpart><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H8AC2E504741F40968500E280749100F7"><enum>(b)</enum><header>Reporting</header><text>Subsection
(d) of section 6049 (relating to returns regarding payments of interest) is
amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H98B670AD6FB54503A22C4800AF2394BC" style="OLC">
<paragraph id="HB2990ED22A0A40A9BDA8A112C1BE0DD"><enum>(9)</enum><header>Reporting of
credit on qualified tax credit bonds</header>
<subparagraph id="H10BEA2ABECFE4681A98E048B1C64A55E"><enum>(A)</enum><header>In
general</header><text>For purposes of subsection (a), the term
<term>interest</term> 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)).</text>
</subparagraph><subparagraph id="H9B745543970046A4A193081944E9D978"><enum>(B)</enum><header>Reporting to
corporations, etc</header><text>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).</text>
</subparagraph><subparagraph id="H07F5F216F70D4A5EB4BD4E7796B58079"><enum>(C)</enum><header>Regulatory
authority</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HFF40D6BE054E43AA918DF84705AAC749"><enum>(c)</enum><header>Conforming
amendments</header>
<paragraph id="HEA14C512A90E4E6EBFA1559F2071C975"><enum>(1)</enum><text>Sections 54(c)(2)
and 1400N(l)(3)(B) are each amended by striking <quote>subpart C</quote> and
inserting <quote>subparts C and I</quote>.</text>
</paragraph><paragraph id="H0BE8FAEEDD6344C38F257100CE13967D"><enum>(2)</enum><text>Section
1397E(c)(2) is amended by striking <quote>subpart H</quote> and inserting
<quote>subparts H and I</quote>.</text>
</paragraph><paragraph id="HB7CC7E21975A4295B67508B6966C44D"><enum>(3)</enum><text>Section 6401(b)(1)
is amended by striking <quote>and H</quote> and inserting <quote>H, and
I</quote>.</text>
</paragraph><paragraph id="H01E0F84BEAFD47C5891CB0D4415FAFE"><enum>(4)</enum><text>The heading of
subpart H of part IV of subchapter A of chapter 1 is amended by striking
<quote><header-in-text level="subpart" style="OLC">certain
bonds</header-in-text></quote> and inserting <quote><header-in-text level="subpart" style="OLC">clean renewable energy
bonds</header-in-text></quote>.</text>
</paragraph><paragraph id="H49DCD36F7F124AFAB22BD1F3255C4676"><enum>(5)</enum><text>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:</text>
<quoted-block id="H144D59E99C5A4CD1B7978CBF17C2009D" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="subchapter">Subpart H. Nonrefundable credit to
holders of clean renewable energy bonds.</toc-entry>
<toc-entry level="subchapter">Subpart I. Qualified tax credit
bonds.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HE86C224B9D9F4AC38232FB00C2B15792"><enum>(d)</enum><header>Effective
dates</header><text>The amendments made by this section shall apply to
obligations issued after the date of the enactment of this Act.</text>
</subsection></section><section id="H041AB59A083940859F0439B247D78B3C"><enum>226.</enum><header>Extension and
modification of special rule to implement FERC and State electric restructuring
policy</header>
<subsection id="HB098F8064CF349178EF9D2E8B787C964"><enum>(a)</enum><header>Extension for
qualified electric utilities</header>
<paragraph id="H740A46B7F5924463933FE45B7D5E8969"><enum>(1)</enum><header>In
general</header><text>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 <quote>(before
January 1, 2010, in the case of a qualified electric utility)</quote> after
<quote>January 1, 2008</quote>.</text>
</paragraph><paragraph id="HAFDFD7119F684DA88382B4025468B01E"><enum>(2)</enum><header>Qualified
electric utility</header><text>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:</text>
<quoted-block id="H084E3A611C504FD989C8A600B6933E71" style="OLC">
<paragraph id="H8459BF6DFBCF45AF8FBAD41ECE9D26D5"><enum>(6)</enum><header>Qualified
electric utility</header><text>For purposes of this subsection, the term
<quote>qualified electric utility</quote> means a person that, as of the date
of the qualifying electric transmission transaction, is vertically integrated,
in that it is both—</text>
<subparagraph id="HEF5F6C5183874B31820057D100BA969"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="H96DA9C4F96A5438C957D1455E7EC456E"><enum>(B)</enum><text>an electric
utility (as defined in section 3(22) of the Federal Power Act (16 U.S.C.
796(22))).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H9B08C765E26E477C8569E31412E8A078"><enum>(b)</enum><header>Extension of
period for transfer of operational control authorized by
FERC</header><text>Clause (ii) of section 451(i)(4)(B) is amended by striking
<quote>December 31, 2007</quote> and inserting <quote>the date which is 4 years
after the close of the taxable year in which the transaction
occurs</quote>.</text>
</subsection><subsection id="H99A1070B19504896896157C659F66A5"><enum>(c)</enum><header>Property located
outside the united states not treated as exempt utility
property</header><text>Paragraph (5) of section 451(i) is amended by adding at
the end the following new subparagraph:</text>
<quoted-block id="H3C3595988FD24979A388A4D5B13D2D48" style="OLC">
<subparagraph id="H107A9BEBEB2444E1B8A98D45DEC0E700"><enum>(C)</enum><header>Exception for
property located outside the united states</header><text>The term <quote>exempt
utility property</quote> shall not include any property which is located
outside the United
States.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H6AB056DD22E94DD688FB22A5F1AFB000"><enum>(d)</enum><header>Effective
Dates</header>
<paragraph id="HA9838E39ACE24FE989AB00F500877E9B"><enum>(1)</enum><header>Extension</header><text>The
amendments made by subsection (a) shall apply to transactions after December
31, 2007.</text>
</paragraph><paragraph id="HC70E7A3D501547D9A047DFEE9F44CABE"><enum>(2)</enum><header>Transfers of
operational control</header><text>The amendment made by subsection (b) shall
take effect as if included in section 909 of the American Jobs Creation Act of
2004.</text>
</paragraph><paragraph id="H9D65911AE94F454FA4C987E8BCA32C6"><enum>(3)</enum><header>Exception for
property located outside the united states</header><text>The amendment made by
subsection (c) shall apply to transactions after the date of the enactment of
this Act.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H9B0E489878BA41B5BCAC00DBFCFD2754" section-type="subsequent-section"><enum>227.</enum><header>Extension and
modification of credit for residential energy efficient property</header>
<subsection id="HD8CFBF0F09944982B083070059F66E22"><enum>(a)</enum><header>Extension</header><text>Section
25D(g) (relating to termination) is amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2014</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H88137C0B2EE6403482BB7CFDD6C2555B"><enum>(b)</enum><header>Maximum credit
for solar electric property</header>
<paragraph commented="no" display-inline="no-display-inline" id="H980A2276FA1B4F27B1E16C6D23805C19"><enum>(1)</enum><header>In
general</header><text>Section 25D(b)(1)(A) (relating to maximum credit) is
amended by striking <quote>$2,000</quote> and inserting
<quote>$4,000</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H32D8D95E7B3146B58B67C7D0E4018226"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 25D(e)(4)(A)(i) is amended by striking
<quote>$6,667</quote> and inserting <quote>$13,333</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="HD567AD0DBE47431B8E2D7EA947401E5E"><enum>(c)</enum><header>Credit for
residential wind property</header>
<paragraph commented="no" id="HF1DB842C233F40738743F216E9178811"><enum>(1)</enum><header>In
general</header><text>Section 25D(a) (relating to allowance of credit) is
amended by striking <quote>and</quote> at the end of paragraph (2), by striking
the period at the end of paragraph (3) and inserting <quote>, and</quote>, and
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HFD5C602AC70443E3ABCF83338B913023" style="OLC">
<paragraph id="HF26E05DCAE9047048BCF2D1B725BD9B8"><enum>(4)</enum><text>30 percent of the
qualified small wind energy property expenditures made by the taxpayer during
such
year.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H6D6E7836F4A9400AAAF763A1F535E7B6"><enum>(2)</enum><header>Limitation</header><text>Section
25D(b)(1) (relating to maximum credit) is amended by striking
<quote>and</quote> at the end of subparagraph (B), by striking the period at
the end of subparagraph (C) and inserting <quote>, and</quote>, and by adding
at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="H7008F395D5484789A0080456FEB0F4E" style="OLC">
<subparagraph id="HBFAB022464BA444F85D94739263B8F10"><enum>(D)</enum><text>$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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H33153A09D4FE4D488FB0BF521C4494F6"><enum>(3)</enum><header>Qualified small
wind energy property expenditures</header>
<subparagraph commented="no" id="H8B1ABCD9648C43C5B7FE4F53EB1333A3"><enum>(A)</enum><header>In
general</header><text>Section 25D(d) (relating to definitions) is amended by
adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H5F72758B83E8460CA790BA49000000B6" style="OLC">
<paragraph id="HE5E26340AC6F4B9995668721EF13B5FD"><enum>(4)</enum><header>Qualified small
wind energy property expenditure</header><text>The term <term>qualified small
wind energy property expenditure</term> 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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="H1503D478A8D64802A67BA2178E49663"><enum>(B)</enum><header>No double
benefit</header><text>Section 45(d)(1) (relating to wind facility) is amended
by adding at the end the following new sentence: <quote>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.</quote>.</text>
</subparagraph></paragraph><paragraph commented="no" id="H98FB9889910C471EBC5038F8191805F0"><enum>(4)</enum><header>Maximum
expenditures in case of joint occupancy</header><text>Section 25D(e)(4)(A)
(relating to maximum expenditures) is amended by striking <quote>and</quote> at
the end of clause (ii), by striking the period at the end of clause (iii) and
inserting <quote>, and</quote>, and by adding at the end the following new
clause:</text>
<quoted-block display-inline="no-display-inline" id="H49ADE48E4EFE4AD0B80046B41F8125A6" style="OLC">
<clause commented="no" id="H3E8CB3A0A6004B9A971BC0140092A58B"><enum>(iv)</enum><text>$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.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H84A65959DB184862A5844B38EE00F8A8"><enum>(d)</enum><header>Credit for
geothermal heat pump systems</header>
<paragraph commented="no" id="H59A3CF5FBF38423598684EC6793B38AF"><enum>(1)</enum><header>In
general</header><text>Section 25D(a) (relating to allowance of credit), as
amended by subsection (c), is amended by striking <quote>and</quote> at the end
of paragraph (3), by striking the period at the end of paragraph (4) and
inserting <quote>, and</quote>, and by adding at the end the following new
paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H2B33EAB97A3A46CD81E4F9F1E711A47D" style="OLC">
<paragraph id="HC8355D057E1744AFB61FB25B00230116"><enum>(5)</enum><text>30 percent of the
qualified geothermal heat pump property expenditures made by the taxpayer
during such
year.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="HE66E81EEFC13422F83A43600CE00CB63"><enum>(2)</enum><header>Limitation</header><text>Section
25D(b)(1) (relating to maximum credit), as amended by subsection (c), is
amended by striking <quote>and</quote> at the end of subparagraph (C), by
striking the period at the end of subparagraph (D) and inserting <quote>,
and</quote>, and by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HA2BC0B2A4302442A81477500F026006E" style="OLC">
<subparagraph id="H7DEB54F1481D4A538B8089D6BABDDF2"><enum>(E)</enum><text>$2,000 with respect
to any qualified geothermal heat pump property
expenditures.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H82935E0BEE6544128EA728A27C90F3B1"><enum>(3)</enum><header>Qualified
geothermal heat pump property expenditure</header><text>Section 25D(d)
(relating to definitions), as amended by subsection (c), is amended by adding
at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H51B9ADE681CD4FE8AFEE9E7E0675A1C0" style="OLC">
<paragraph id="H53EAAB0FF8994740AF7D719E00B21CDE"><enum>(5)</enum><header>Qualified
geothermal heat pump property expenditure</header>
<subparagraph id="H1BB266B4B8A645D290824C2360A9F15D"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified geothermal heat pump property
expenditure</term> 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.</text>
</subparagraph><subparagraph id="HCBB00867A36747749254F52EF571B0E3"><enum>(B)</enum><header>Qualified
geothermal heat pump property</header><text>The term <quote>qualified
geothermal heat pump property</quote> means any equipment which—</text>
<clause id="HE9EC232FC72940149BE058FE22ACD65F"><enum>(i)</enum><text display-inline="yes-display-inline">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</text>
</clause><clause id="H7EBBE2E1A9AA42EC85F4487FA1530027"><enum>(ii)</enum><text display-inline="yes-display-inline">meets the requirements of the Energy Star
program which are in effect at the time that the expenditure for such equipment
is
made.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H7C72EE726C554499AF595FD0D86DAA1B"><enum>(4)</enum><header>Maximum
expenditures in case of joint occupancy</header><text>Section 25D(e)(4)(A)
(relating to maximum expenditures), as amended by subsection (c), is amended by
striking <quote>and</quote> at the end of clause (iii), by striking the period
at the end of clause (iv) and inserting <quote>, and</quote>, and by adding at
the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H2996B90EDA4745CDBC19AE0066513343" style="OLC">
<clause commented="no" id="H9FD099999DC447A6AD052DF5B46E07"><enum>(v)</enum><text>$6,667 in the case
of any qualified geothermal heat pump property
expenditures.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" id="HA41E62DA0E7D4D29B3A0A3D6C7D887BB"><enum>(e)</enum><header>Credit allowed
against alternative minimum tax</header>
<paragraph commented="no" id="HB76FE631851E49DC009C61C59B9702FE"><enum>(1)</enum><header>In
general</header><text>Subsection (c) of section 25D is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="HEDB761392187472B890048D98253A9E1" style="OLC">
<subsection commented="no" id="H251C9BC7E16F4A32BE6D6326FE007E8D"><enum>(c)</enum><header>Limitation based
on amount of tax; carryforward of unused credit</header>
<paragraph commented="no" id="H8A1FF8726CCC42569FE428AE3052F8B3"><enum>(1)</enum><header>Limitation based
on amount of tax</header><text>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—</text>
<subparagraph commented="no" id="H06640E7C0A8C418A003427C355E42EC3"><enum>(A)</enum><text>the sum of the
regular tax liability (as defined in section 26(b)) plus the tax imposed by
section 55, over</text>
</subparagraph><subparagraph commented="no" id="H1B1ED9D3C4594749BC643FB600D034AA"><enum>(B)</enum><text>the sum of the
credits allowable under this subpart (other than this section) and section 27
for the taxable year.</text>
</subparagraph></paragraph><paragraph commented="no" id="H6EF7CE599A924D4CBFD1365037CC5FB0"><enum>(2)</enum><header>Carryforward of
unused credit</header>
<subparagraph commented="no" id="HD2EE857D919F4FCD99425BCD2B885535"><enum>(A)</enum><header>Rule for years
in which all personal credits allowed against regular and alternative minimum
tax</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph commented="no" id="H72F2405CA71646088239DBED9BB70002"><enum>(B)</enum><header>Rule for other
years</header><text>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.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H6021F22D969F4E4BA700CFBB44BA88"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph commented="no" id="H81AF8BDE219D480A94CECC6E8573B811"><enum>(A)</enum><text>Section
23(b)(4)(B) is amended by inserting <quote>and section 25D</quote> after
<quote>this section</quote>.</text>
</subparagraph><subparagraph commented="no" id="H3F82A2DF5D4C425D9D117F2C7961BEA1"><enum>(B)</enum><text>Section
24(b)(3)(B) is amended by striking <quote>and 25B</quote> and inserting
<quote>, 25B, and 25D</quote>.</text>
</subparagraph><subparagraph commented="no" id="HA9018F0DA4EC47DBA5275401B1E3F4C0"><enum>(C)</enum><text>Section 25B(g)(2)
is amended by striking <quote>section 23</quote> and inserting <quote>sections
23 and 25D</quote>.</text>
</subparagraph><subparagraph commented="no" id="HD76378202E8540F89D6C688CB4167656"><enum>(D)</enum><text>Section 26(a)(1)
is amended by striking <quote>and 25B</quote> and inserting <quote>25B, and
25D</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HF5D0D060FFC74EB89DAEFFA1D41FC531"><enum>(f)</enum><header>Effective
date</header>
<paragraph id="HA4C672DBC46247D5B5EB3CAF4367C9DF"><enum>(1)</enum><header>In
general</header><text>The amendments made by this section shall apply to
taxable years beginning after December 31, 2007.</text>
</paragraph><paragraph id="HA7307EF6FFC34100B222DCC4075F7570"><enum>(2)</enum><header>Application of
EGTRRA sunset</header><text>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.</text>
</paragraph></subsection></section></part><part id="HF20D948F5BAF4C588B84842B00D93CEE"><enum>2</enum><header>Transportation
Conservation Incentives</header>
<subpart id="HD5B5CF6520724509B7FD87ABD4B0466F"><enum>A</enum><header>Vehicles</header>
<section display-inline="no-display-inline" id="H1A771ECE726E44B7A23BBAEAB9013B63" section-type="subsequent-section"><enum>231.</enum><header>Credit for plug-in
hybrid vehicles</header>
<subsection id="HE8753747B5B24A75B1ACBFC44324B722"><enum>(a)</enum><header>In
general</header><text>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:</text>
<quoted-block id="HB598BDF393E84EC8AEA1B000A4C7F1A7">
<section id="H2683367E6DBD483B9E6472FF5B59FCCA"><enum>30D.</enum><header>Plug-in hybrid
vehicles</header>
<subsection id="H7A941FDADFD0489093E455566C486770"><enum>(a)</enum><header>Allowance of
credit</header><text>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.</text>
</subsection><subsection id="HFFA93738284D45B38EC0742E00335954"><enum>(b)</enum><header>Per vehicle
dollar limitation</header>
<paragraph id="H7A8A5762651E41E98261296C161ED83E"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H25303B99CF52464EB3A2BB4CAF813882"><enum>(2)</enum><header>Base
amount</header><text>The amount determined under this paragraph is
$4,000.</text>
</paragraph><paragraph id="H307B213335AA4D9700439D5FADB5ED7"><enum>(3)</enum><header>Battery
capacity</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HF34E6904D2FC4F17BA6E508BEC500791"><enum>(c)</enum><header>Application with
other credits</header>
<paragraph commented="no" id="HE741C70D7F0E4CE69740DFB433ED7C83"><enum>(1)</enum><header>Business credit
treated as part of general business credit</header><text display-inline="yes-display-inline">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)).</text>
</paragraph><paragraph id="HC27EA06F89284BD4BC60CADAD75B134C"><enum>(2)</enum><header>Personal
credit</header>
<subparagraph id="H60B6787190644960B0D0C4774BA083DB"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="H089202436F1F4B6498CC1002405F0B4"><enum>(B)</enum><header>Limitation based
on amount of tax</header><text>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—</text>
<clause id="HA8D223096B7E4A0FBB822F64CB69A7A"><enum>(i)</enum><text>the
sum of the regular tax liability (as defined in section 26(b)) plus the tax
imposed by section 55, over</text>
</clause><clause id="H6887E4436E6F49DE99358C102D6CC4E"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph></paragraph></subsection><subsection display-inline="no-display-inline" id="HBC0E9BBB302F4D97895704E526D947EA"><enum>(d)</enum><header>Qualified
plug-In hybrid vehicle</header><text>For purposes of this section—</text>
<paragraph id="H55C11A5B011242FE80B8EF9DC04132DF"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The term
<term>qualified plug-in hybrid vehicle</term> means a motor vehicle (as defined
in section 30(c)(2))—</text>
<subparagraph id="HE14EF69D28F74AD5B812D4C43D2782A5"><enum>(A)</enum><text>the original use
of which commences with the taxpayer,</text>
</subparagraph><subparagraph id="H6A8A514272FA4B29938155DBBA5818"><enum>(B)</enum><text>which is acquired
for use or lease by the taxpayer and not for resale,</text>
</subparagraph><subparagraph id="H1E6A28746E9340A691F8C0057692180"><enum>(C)</enum><text>which is made by a
manufacturer,</text>
</subparagraph><subparagraph id="H1F50748F533341948396DCA3519B45"><enum>(D)</enum><text display-inline="yes-display-inline">which has a gross vehicle weight rating of
less than 14,000 pounds,</text>
</subparagraph><subparagraph id="H0FB7B712B6E044ACA015C3ED9F47D39"><enum>(E)</enum><text display-inline="yes-display-inline">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,</text>
</subparagraph><subparagraph id="H8C6EED81658F421E8497009792C3F5C4"><enum>(F)</enum><text>which is propelled
to a significant extent by an electric motor which draws electricity from a
battery which—</text>
<clause id="H53B46B73F11841DBA0A1FDDD1F7C5D5C"><enum>(i)</enum><text>has a capacity of
not less than 4 kilowatt hours, and</text>
</clause><clause id="HAF6421C66F8F4ECA9414F276B9925328"><enum>(ii)</enum><text>is capable of
being recharged from an external source of electricity, and</text>
</clause></subparagraph><subparagraph id="H08D12EA56D274191B53688606EDDFF30"><enum>(G)</enum><text>which
either—</text>
<clause id="HD8171813ED3E4F6183221965867FA7D7"><enum>(i)</enum><text>is
also propelled to a significant extent by other than an electric motor,
or</text>
</clause><clause id="H61577B904F954A8FAD00513900E7D65C"><enum>(ii)</enum><text>has a significant
onboard source of electricity which also recharges the battery referred to in
subparagraph (F).</text>
</clause></subparagraph></paragraph><paragraph id="H795A606FDC6B4154B483822211E9E78B"><enum>(2)</enum><header>Exception</header><text display-inline="yes-display-inline">The term <term>qualified plug-in hybrid
vehicle</term> 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.</text>
</paragraph><paragraph id="H444691E3C3B44035B28B73D777BF8BBE"><enum>(3)</enum><header>Other
terms</header><text display-inline="yes-display-inline">The terms
<term>passenger automobile</term>, <term>light truck</term>, and
<term>manufacturer</term> 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.).</text>
</paragraph><paragraph id="H86366BA85A524C96BD44AEF9ADBF3298"><enum>(4)</enum><header>Battery
capacity</header><text display-inline="yes-display-inline">The term
<term>capacity</term> 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.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HD3F492C4AF774567B2E73DDFA98D6582"><enum>(e)</enum><header>Limitation on
number of qualified plug-In hybrid vehicles eligible for credit</header>
<paragraph id="HFC6F317D96664AEB8DA7E6CF46654F33"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HAF1461766DDA49CFACAC8086656089D6"><enum>(2)</enum><header>Phaseout
period</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="HAF58261825A34AE2862824AB00A1DE32"><enum>(3)</enum><header>Applicable
percentage</header><text display-inline="yes-display-inline">For purposes of
paragraph (1), the applicable percentage is—</text>
<subparagraph id="H47E87610CAE743AE81B44573D7BE199D"><enum>(A)</enum><text>50 percent for the
first 2 calendar quarters of the phaseout period,</text>
</subparagraph><subparagraph id="HCABF2C99445B4E469B224EB2038BE400"><enum>(B)</enum><text>25 percent for the
3d and 4th calendar quarters of the phaseout period, and</text>
</subparagraph><subparagraph id="HB77A55DBC1F4487097D2006425D2C7AE"><enum>(C)</enum><text>0 percent for each
calendar quarter thereafter.</text>
</subparagraph></paragraph><paragraph id="H78D016F7494B4127969BD936D7609DE5"><enum>(4)</enum><header>Controlled
groups</header><text>Rules similar to the rules of section 30B(f)(4) shall
apply for purposes of this subsection.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HF199C9521CAE4CCC81B84D48D5A0031F"><enum>(f)</enum><header>Special
rules</header>
<paragraph id="H7A0E3505DFA748ABB02F11CFA3D1F5BA"><enum>(1)</enum><header>Basis
reduction</header><text>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)).</text>
</paragraph><paragraph id="H4C453C603AB14F1593F689B09EA22400"><enum>(2)</enum><header>Recapture</header><text>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.</text>
</paragraph><paragraph id="H594A30B550D14E00BDD9C811FEA92D08"><enum>(3)</enum><header>Property used
outside United States, etc., not qualified</header><text>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.</text>
</paragraph><paragraph id="H38C55CC199BA4D979B00E372174EECB3"><enum>(4)</enum><header>Election not to
take credit</header><text>No credit shall be allowed under subsection (a) for
any vehicle if the taxpayer elects to not have this section apply to such
vehicle.</text>
</paragraph><paragraph id="HBC3E8D2F2A90455C83508C391DDDE85B"><enum>(5)</enum><header>Property used by
tax-exempt entity; interaction with air quality and motor vehicle safety
standards</header><text>Rules similar to the rules of paragraphs (6) and (10)
of section 30B(h) shall apply for purposes of this
section.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection display-inline="no-display-inline" id="HD5AC9CA348DC4F12B92D40654C13AA2D"><enum>(b)</enum><header>Plug-In vehicles
not treated as new qualified hybrid vehicles</header><text>Section 30B(d)(3) is
amended by adding at the end the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HB397F751C6F249608150B2D0B3C5C1D1" style="OLC">
<subparagraph id="H1022CE47D3DA41A5985E98B8CCD247E3"><enum>(D)</enum><header>Exclusion of
plug-in vehicles</header><text>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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H2D6F99AA0E5142B987A200B7C32811D9"><enum>(c)</enum><header>Credit made part
of general business credit</header><text display-inline="yes-display-inline">Section 38(b) is amended—</text>
<paragraph id="H3B2CD9E319E34B8AA6C0613D74E9F5BB"><enum>(1)</enum><text>by striking
<quote>and</quote> each place it appears at the end of any paragraph,</text>
</paragraph><paragraph id="HC275D4B153514E1D951316B8BF60E9FC"><enum>(2)</enum><text>by striking
<quote>plus</quote> each place it appears at the end of any paragraph,</text>
</paragraph><paragraph id="H716065751F8344668BA7885D72BCABBF"><enum>(3)</enum><text>by striking the
period at the end of paragraph (31) and inserting ‘‘, plus’’, and</text>
</paragraph><paragraph id="HAF71E4068F4843FEABB94C56D5C99E79"><enum>(4)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HE57E71BEE9414C5B855046FEA080CE98" style="OLC">
<paragraph commented="no" id="HB31469697E4D4845BDFA2044A7EBD5E3"><enum>(32)</enum><text display-inline="yes-display-inline">the portion of the plug-in hybrid vehicle
credit to which section 30D(c)(1)
applies.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection display-inline="no-display-inline" id="HDF28701789424094903E04C311081599"><enum>(d)</enum><header>Conforming
amendments</header>
<paragraph id="H5D1DB5148C4044ABB6A0B22027A25750"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="H8BC61559B7CC4F8C89BD6C8C4EAAE21F"><enum>(A)</enum><text>Section 24(b)(3)(B), as
amended by this Act, is amended by striking <quote>and 25D</quote> and
inserting <quote>25D, and 30D</quote>.</text>
</subparagraph><subparagraph id="HC6C7C11EF5A24B09831B33AA00684455" indent="up1"><enum>(B)</enum><text>Section 25(e)(1)(C)(ii) is amended by
inserting <quote>30D,</quote> after <quote>25D,</quote>.</text>
</subparagraph><subparagraph id="H595091AEAC5242EF9B39BE5ED62CBCC" indent="up1"><enum>(C)</enum><text>Section 25B(g)(2), as amended by this
Act, is amended by striking <quote>and 25D</quote> and inserting <quote>, 25D,
and 30D</quote>.</text>
</subparagraph><subparagraph id="H1C1FAE6647A4490480A8C565D0D49D78" indent="up1"><enum>(D)</enum><text>Section 26(a)(1), as amended by this
Act, is amended by striking <quote>and 25D</quote> and inserting <quote>25D,
and 30D</quote>.</text>
</subparagraph><subparagraph id="H1889185A702C472B88E2E69FF95C6900" indent="up1"><enum>(E)</enum><text>Section 1400C(d)(2) is amended by
striking <quote>and 25D</quote> and inserting <quote>25D, and
30D</quote>.</text>
</subparagraph></paragraph><paragraph id="H501D349BD9E649FBBEB7100096E3E84"><enum>(2)</enum><text>Section 1016(a) is
amended by striking <quote>and</quote> at the end of paragraph (35), by
striking the period at the end of paragraph (36) and inserting <quote>,
and</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H8007510BFCEF4A0CB6FB74E229E06914" style="OLC">
<paragraph id="H96AAA32E12DD49B6A9928D61682E8813"><enum>(37)</enum><text>to the extent
provided in section
30D(f)(1).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HCA279C295E5D46089D4BF7058BD6FB17"><enum>(3)</enum><text>Section 6501(m) is
amended by inserting <quote>30D(f)(4),</quote> after
<quote>30C(e)(5),</quote>.</text>
</paragraph><paragraph id="H543D037B582E42F9A7FA6C03196690F0"><enum>(4)</enum><text>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:</text>
<quoted-block id="H79A437306AF74DDAA5EB9715732111C1" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 30D. Plug-in hybrid
vehicles.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H44AA2432394C455BAFD565E56040BA17"><enum>(e)</enum><header>Treatment of
alternative motor vehicle credit as a personal credit</header>
<paragraph id="H8133461F8B6044DB999DB5F881A38501"><enum>(1)</enum><header>In
general</header><text>Paragraph (2) of section 30B(g) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H30B0CA6313EB4DF18F741F82B36CCE20" style="OLC">
<paragraph id="HB4EB08321CD54EDA9435584F54446700"><enum>(2)</enum><header>Personal
credit</header><text display-inline="yes-display-inline">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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H2B23744E347E454098DAF82863D5F373"><enum>(2)</enum><header>Conforming
amendments</header>
<subparagraph id="H46C85C73995B4CD5A74B7400DAE14091"><enum>(A)</enum><text display-inline="yes-display-inline">Subparagraph (A) of section 30C(d)(2) is
amended by striking <quote>sections 27, 30, and 30B</quote> and inserting
<quote>sections 27 and 30</quote>.</text>
</subparagraph><subparagraph id="H50F77006BE6E43CA806717B89B20F5C4"><enum>(B)</enum><text>Paragraph (3) of
section 55(c) is amended by striking <quote>30B(g)(2),</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="HE841439F658E4512005418819B71211F"><enum>(f)</enum><header>Effective
date</header>
<paragraph id="HFCC158CF49DB471CA1A54F5FDCDD5101"><enum>(1)</enum><header>In
general</header><text>Except as otherwise provided in this subsection, the
amendments made by this section shall apply to taxable years beginning after
December 31, 2008.</text>
</paragraph><paragraph id="H0C45FCE6B11547E2A17B006938B849AB"><enum>(2)</enum><header>Treatment of
alternative motor vehicle credit as personal credit</header><text>The
amendments made by subsection (e) shall apply to taxable years beginning after
December 31, 2007.</text>
</paragraph></subsection><subsection id="HD2DD48C20D0F4F4BB1247155A4E9B892"><enum>(g)</enum><header>Application of
EGTRRA sunset</header><text>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.</text>
</subsection></section><section display-inline="no-display-inline" id="H5F880218C7A04A0BBCB0EF687D68144" section-type="subsequent-section"><enum>232.</enum><header>Extension and
modification of alternative fuel vehicle refueling property credit</header>
<subsection id="H46CA06FD6F4E462E8EB0BA09FCC3733D"><enum>(a)</enum><header>Increase in
credit amount</header><text>Section 30C (relating to alternative fuel vehicle
refueling property credit) is amended—</text>
<paragraph id="H3C12C6B5D1434270AD9B5548555724DF"><enum>(1)</enum><text>by striking
<quote>30 percent</quote> in subsection (a) and inserting <quote>50
percent</quote>, and</text>
</paragraph><paragraph id="HE032B7DF06414E909BA588955FB85E6F"><enum>(2)</enum><text>by striking
<quote>$30,000</quote> in subsection (b)(1) and inserting
<quote>$50,000</quote>.</text>
</paragraph></subsection><subsection id="HC468DED0E48F43F28F7CA639C9BEF3F"><enum>(b)</enum><header>Extension of
credit</header><text>Paragraph (2) of section 30C(g) (relating to termination)
is amended by striking <quote>December 31, 2009</quote> and inserting
<quote>December 31, 2010</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="HAEC8E84BE5EC4C5D8F1400A29148907E"><enum>(c)</enum><header>Effective
date</header><text>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.</text>
</subsection></section><section display-inline="no-display-inline" id="HEAFFB8E8E0D74D789379ADA9830E860" section-type="subsequent-section"><enum>233.</enum><header>Modification of
limitation on automobile depreciation</header>
<subsection id="H712A56A2F1824001B9E777165EF1DDCF"><enum>(a)</enum><header>In
general</header><text>Paragraph (5) of section 280F(d) (defining passenger
automobile) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HCF081B1A6B154599899ECEBC1B7A5D6" style="OLC">
<paragraph id="HA3E0B053DDD84D66BF38D37B342290C"><enum>(5)</enum><header>Passenger
automobile</header>
<subparagraph id="H1541013221654F26AE8ED8C498E5893F"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<term>passenger automobile</term> means any 4-wheeled vehicle—</text>
<clause id="H9C61D5DB64A343649E86DC3CC01FFC45"><enum>(i)</enum><text display-inline="yes-display-inline">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</text>
</clause><clause commented="no" id="H22022620C16942968CB60631EF3FDB8E"><enum>(ii)</enum><text>which is rated at
not more than 14,000 pounds gross vehicle weight.</text>
</clause></subparagraph><subparagraph id="H2C62F35529E040B9AE8C009B82135EF9"><enum>(B)</enum><header>Exceptions</header><text>The
term <term>passenger automobile</term> shall not include—</text>
<clause id="HAFD8EA8A5A3E4FBDA7EC22001F5F341E"><enum>(i)</enum><text display-inline="yes-display-inline">any exempt-design vehicle, and</text>
</clause><clause id="HCFA6BFE850DF4A9B9C9FFD50F0F6BED4"><enum>(ii)</enum><text>any exempt-use
vehicle.</text>
</clause></subparagraph><subparagraph id="H051D76D515374F6FB4434BBA42394FED"><enum>(C)</enum><header>Exempt-design
vehicle</header><text>The term <term>exempt-design vehicle</term> means—</text>
<clause id="H0B97E44AEF9D48EB8B7292B790465087"><enum>(i)</enum><text>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</text>
</clause><clause id="H089818B89CA547B5877DB586D7007B39"><enum>(ii)</enum><text>any
vehicle—</text>
<subclause id="H5D9217C3519D44C4A32F22CC6FDBBD7"><enum>(I)</enum><text>which is designed
to have a seating capacity of more than 9 persons behind the driver’s
seat,</text>
</subclause><subclause id="HD4ACE2E1F62F48F2BF00B58E3B4FDD4"><enum>(II)</enum><text>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</text>
</subclause><subclause id="HD595E9132385428E9093C2D4A4E76B65"><enum>(III)</enum><text>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.</text>
</subclause></clause></subparagraph><subparagraph id="HD3D3AFAD0CA54C3F00C94CF6052134B9"><enum>(D)</enum><header>Exempt-use
vehicle</header><text>The term <term>exempt-use vehicle</term> means—</text>
<clause id="H4BBD2FF231FA4DBA00044BC79B0033BD"><enum>(i)</enum><text>any ambulance,
hearse, or combination ambulance-hearse used by the taxpayer directly in a
trade or business,</text>
</clause><clause id="H67A42791378B4A9AB559F26EF928F15"><enum>(ii)</enum><text>any vehicle used
by the taxpayer directly in the trade or business of transporting persons or
property for compensation or hire, and</text>
</clause><clause id="H00CB472D39C64E4EA24FBCF82D30C2"><enum>(iii)</enum><text>any truck or van
if substantially all of the use of such vehicle by the taxpayer is directly
in—</text>
<subclause id="HBA3CBDAED51E4971B63CAB04018AF7C"><enum>(I)</enum><text>a farming business
(within the meaning of section 263A(e)(4)),</text>
</subclause><subclause id="H9E92E5C16BE940A6A9FC7BC47C88F396"><enum>(II)</enum><text display-inline="yes-display-inline">the transportation of a substantial amount
of equipment, supplies, or inventory, or</text>
</subclause><subclause id="H689E21209EF14C97B4BFB1CBFC914EF"><enum>(III)</enum><text display-inline="yes-display-inline">the moving or delivery of property which
requires substantial cargo capacity.</text>
</subclause></clause></subparagraph><subparagraph id="HA46E6F3F73AD4F82827644B00F6B37B"><enum>(E)</enum><header>Recapture</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7749F802AE9B4BABA71BBB265D44E009"><enum>(b)</enum><header>Conforming
amendment</header><text>Section 179(b) (relating to limitations) is amended by
striking paragraph (6).</text>
</subsection><subsection id="HBBC41447A4A043C8A81F18AA04C583C"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section></subpart><subpart id="HD2B96569D7584205A660D136BEB4AAB6"><enum>B</enum><header>Fuels</header>
<section display-inline="no-display-inline" id="H1838C13112EA47E29C0305AF740567B4" section-type="subsequent-section"><enum>241.</enum><header>Extension and
modification of credits for biodiesel and renewable diesel</header>
<subsection id="HFC7959D4B56F4716AE5FEDF20210C266"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Sections 40A(g),
6426(c)(6), and 6427(e)(5)(B) are each amended by striking <quote>December 31,
2008</quote> and inserting <quote>December 31, 2010</quote>.</text>
</subsection><subsection id="H48D4A117913846878B00C9295BCA6599"><enum>(b)</enum><header>Uniform
treatment of diesel produced from biomass</header><text>Paragraph (3) of
section 40A(f) is amended—</text>
<paragraph id="H872AB131EE1B4C139239345625DBE631"><enum>(1)</enum><text>by striking
<quote>diesel fuel</quote> and inserting <quote>liquid fuel</quote>,</text>
</paragraph><paragraph id="H19B5115894FF4147A34D00006FAFE62"><enum>(2)</enum><text>by
striking <quote>using a thermal depolymerization process</quote>, and</text>
</paragraph><paragraph id="H15425B301E2C4653A91BC9B213008925"><enum>(3)</enum><text>by striking
<quote>or D396</quote> in subparagraph (B) and inserting <quote>or other
equivalent standard approved by the Secretary for fuels to be used in
diesel-powered highway vehicles</quote>.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H4F74963A13E2419EB72D64EB47DB868F"><enum>(c)</enum><header>Coproduction of
renewable diesel with petroleum feedstock</header>
<paragraph id="HCF11E2B5BE86437392D3763F5C065C88"><enum>(1)</enum><header>In
general</header><text>Paragraph (3) of section 40A(f) (defining renewable
diesel) is amended by adding at the end the following flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="H9B5EE4E9658C460100C6811F514F593C" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="paragraph">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
<term>biomass</term> has the meaning given such term by section
45K(c)(3).</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H70FEA412D3694C6092A06C3B9362EDC5"><enum>(2)</enum><header>Conforming
amendment</header><text>Paragraph (3) of section 40A(f) is amended by striking
<quote>(as defined in section 45K(c)(3))</quote>.</text>
</paragraph></subsection><subsection id="H2E1CFEAFB94A48009E386C016894774F"><enum>(d)</enum><header>Effective
date</header>
<paragraph id="HA47C45A7D23E4FF6B456396E41DF9E41"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="HB056A9A4F0AD4061AC6FCE244818CCC3"><enum>(2)</enum><header>Coproduction of
renewable diesel with petroleum feedstock</header><text>The amendments made by
subsection (c) shall apply to fuel produced, and sold or used, after February
13, 2008.</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="H55B627B5B1224DB3BB4B1CB97D8FC88F" section-type="subsequent-section"><enum>242.</enum><header>Clarification that
credits for fuel are designed to provide an incentive for United States
production</header>
<subsection commented="no" id="HA81501FC13B34EE8A9C75069A32398A6"><enum>(a)</enum><header>Biodiesel fuels
credit</header><text>Paragraph (5) of section 40A(d), as added by subsection
(c), is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H3BFF2A72B0054E59A6F4DC9F1B9DFC95" style="OLC">
<paragraph commented="no" id="H9FB3524449E249A4009CA95821E07770"><enum>(5)</enum><header>Limitation to
biodiesel with connection to the United States</header><text display-inline="yes-display-inline">No credit shall be determined under this
section with respect to any biodiesel unless—</text>
<subparagraph id="H3062A5A7C6764989AE986B3BA3BACE07"><enum>(A)</enum><text>such biodiesel is
produced in the United States for use as a fuel in the United States,
and</text>
</subparagraph><subparagraph id="H1B3EB6D0FE9E467698D6CA4D7BC8F1D1"><enum>(B)</enum><text>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.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">For
purposes of this paragraph, the term <term>United States</term> includes any
possession of the United
States.</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H7F3BB5F645D34789981D60FCCE98B800"><enum>(b)</enum><header>Excise tax
credit</header><text>Paragraph (2) of section 6426(h), as added by subsection
(c), is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H43A116DBF1F34FBBBDFD289BC6691E11" style="OLC">
<paragraph commented="no" id="HFC9BDCE3E6E74CAD97A541B076F94866"><enum>(2)</enum><header>Biodiesel and
alternative fuels</header><text>No credit shall be determined under this
section with respect to any biodiesel or alternative fuel unless—</text>
<subparagraph commented="no" id="HFFB1BA1D77324FCDB66B80320769D753"><enum>(A)</enum><text display-inline="yes-display-inline">such biodiesel or alternative fuel is
produced in the United States for use as a fuel in the United States,
and</text>
</subparagraph><subparagraph commented="no" id="H89DEFD9A32384DDE846EBE4F662DD9C7"><enum>(B)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HD58522C549BA4AF194F758F3CE8941BF"><enum>(c)</enum><header>Provisions
clarifying treatment of fuels with no nexus to the United States</header>
<paragraph commented="no" display-inline="no-display-inline" id="HE2486C759BA84B9BA7BA933807F9C951"><enum>(1)</enum><header>Alcohol fuels
credit</header><text>Subsection (d) of section 40 is amended by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H2BB3CEB6CEF74F0682D47C134C7B51C8" style="OLC">
<paragraph commented="no" id="HBF93DDFE8D68468DA58560202608D0F9"><enum>(6)</enum><header>Limitation to
alcohol with connection to the United States</header><text display-inline="yes-display-inline">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 <term>United States</term> includes any possession of the United
States.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HEEC9FCB42A1343DA9CF725975535008F"><enum>(2)</enum><header>Biodiesel fuels
credit</header><text>Subsection (d) of section 40A is amended by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HB3C44F37F04F4969BDD2CA22BE6B590" style="OLC">
<paragraph commented="no" id="HAB934C13427145648C29F8F9B965FF00"><enum>(5)</enum><header>Limitation to
biodiesel with connection to the United States</header><text display-inline="yes-display-inline">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 <term>United States</term> includes any possession of the
United
States.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H206F0BB7F78E4A38B6405CD17281FA06"><enum>(3)</enum><header>Excise tax
credit</header>
<subparagraph id="H5F8E57D6EACF403EA6F718B400BBD64B"><enum>(A)</enum><header>In
general</header><text>Section 6426 is amended by adding at the end the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H7542FB827C044681A79300D655FE72B3" style="OLC">
<subsection commented="no" id="H62F5F6B9A95047E4A23C3855E2B0CD4B"><enum>(h)</enum><header>Limitation to
fuels with connection to the United States</header>
<paragraph id="H4AA0D0052D2C441A9379393000A2FA19"><enum>(1)</enum><header>Alcohol</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H097C05B34C2B43778D6757DEFB203396"><enum>(2)</enum><header>Biodiesel and
alternative fuels</header><text display-inline="yes-display-inline">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.</text>
</paragraph><continuation-text continuation-text-level="subsection">For
purposes of this subsection, the term <term>United States</term> includes any
possession of the United
States.</continuation-text></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" id="HA2F20B32EEFA40AEBC6EE07EBCED98C5"><enum>(B)</enum><header>Conforming
amendment</header><text>Subsection (e) of section 6427 is amended by
redesignating paragraph (5) as paragraph (6) and by inserting after paragraph
(4) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HE582F40D313C48F698DFA6E6FE7BC97C" style="OLC">
<paragraph commented="no" id="HC938A86E6DA14F458BD872978DEFE0C3"><enum>(5)</enum><header>Limitation to
fuels with connection to the United States</header><text>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).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" id="HB27AEF3706124BC2A9EDDB28FF862CDB"><enum>(d)</enum><header>Effective
date</header>
<paragraph id="H5997B8347F1240F0005628003F11D8A1"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HD3DE522FEEE84AB596F1F9AA7D4F3081"><enum>(2)</enum><header>Provisions
clarifying treatment of fuels with no nexus to the United States</header>
<subparagraph id="H1DCADA6BAB9348CAAEE1F59DE5F4CD7"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBB5AD158AD8A4E858F13DE5B34A098B8"><enum>(B)</enum><header>Alternative fuel
credits</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="H973BE83FAB2F4A02B938A402EDDBF20"><enum>(C)</enum><header>Renewable
diesel</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph></subsection></section><section display-inline="no-display-inline" id="H4326FCECBFD94668A1F6A29984700030" section-type="subsequent-section"><enum>243.</enum><header>Credit for
production of cellulosic alcohol</header>
<subsection id="HFDE1B054A89B4A36ADBD6F386DA8DBBD"><enum>(a)</enum><header>In
general</header><text>Subsection (b) of section 40 is amended by redesignating
paragraph (5) as paragraph (6) and by inserting after paragraph (4) the
following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HA1C83FCB2F774DBCBF0135AF27A3A165" style="OLC">
<paragraph id="HE025B739A25443628C00632F1496E4EF"><enum>(5)</enum><header>Cellulosic
alcohol fuel producer credit</header>
<subparagraph id="H151D6070F5DB4447A82FE4B505DC2D12"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="H77126E2D69754343B712A739126BC864"><enum>(B)</enum><header>Qualified
cellulosic fuel production</header><text>For purposes of this paragraph, the
term <term>qualified cellulosic fuel production</term> means any cellulosic
alcohol which is produced by a cellulosic alcohol fuel producer, and which
during the taxable year—</text>
<clause id="H13AE10DBF1FF4700876510333B02BE04"><enum>(i)</enum><text>is
sold by such producer to another person—</text>
<subclause id="H1F37C83542FE4291A4FCDE731BC71B"><enum>(I)</enum><text>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),</text>
</subclause><subclause id="H9B4E330913D84A7AAD7EC90951EB6FAA"><enum>(II)</enum><text>for use by such
other person as a fuel in a trade or business, or</text>
</subclause><subclause id="HC31302D0FC63476FB4D700E695059D1C"><enum>(III)</enum><text>who sells such
alcohol at retail to another person and places such alcohol in the fuel tank of
such other person, or</text>
</subclause></clause><clause id="H3E9777BBE28746CF978FD6F9FA0225BE"><enum>(ii)</enum><text>is used or sold
by such producer for any purpose described in clause (i).</text>
</clause></subparagraph><subparagraph display-inline="no-display-inline" id="H895AF8AA75FB41B582F3E86B129CA7BA"><enum>(C)</enum><header>Cellulosic
alcohol</header><text>For purposes of this paragraph, the term <term>cellulosic
alcohol</term> means any alcohol which—</text>
<clause id="H6FE1A21C59334D198D76046DE09C9534"><enum>(i)</enum><text>is
produced in the United States for use as a fuel in the United States,
and</text>
</clause><clause id="H682116342F4142C1BD60AABEF47237C2"><enum>(ii)</enum><text>is derived from
any lignocellulosic or hemicellulosic matter that is available on a renewable
or recurring basis.</text>
</clause><continuation-text continuation-text-level="subparagraph">For
purposes of this subparagraph, the term <term>United States</term> includes any
possession of the United States.</continuation-text></subparagraph><subparagraph id="HABC5FF6A94A34EA1A59353BFFF995C6"><enum>(D)</enum><header>Cellulosic
alcohol fuel producer</header><text>For purposes of this paragraph, the term
<term>cellulosic alcohol fuel producer</term> means any person who produces
cellulosic alcohol in a trade or business and is registered with the Secretary
as a cellulosic alcohol fuel producer.</text>
</subparagraph><subparagraph id="HEBCC215D302A4E24B21E2D5500C93B97"><enum>(E)</enum><header>Additional
distillation excluded</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H7E587C2B8942476EB71916CA1910CD84"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="HD0EA8B19CC394A3498BCEE34EDFA3C3C"><enum>(1)</enum><text>Subsection (a) of
section 40 is amended by striking <quote>plus</quote> at the end of paragraph
(1), by striking <quote>plus</quote> at the end of paragraph (2), by striking
the period at the end of paragraph (3) and inserting <quote>, plus</quote>, and
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H330AF46999CE420294D720483703FED5" style="OLC">
<paragraph id="H6864C39F814B4002B8906C4BCD005919"><enum>(4)</enum><text>in the case of a
cellulosic alcohol fuel producer, the cellulosic alcohol fuel producer
credit.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HC37A747636934C1A8BDDAFF96004E8B"><enum>(2)</enum><text>Clause (ii) of
section 40(d)(3)(C) is amended by striking <quote>subsection (b)(4)(B)</quote>
and inserting <quote>paragraph (4)(B) or (5)(B) of subsection
(b)</quote>.</text>
</paragraph></subsection><subsection id="HB7750C819886452C8E1E0579175C8E6B"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to alcohol
produced after December 31, 2008.</text>
</subsection></section><section display-inline="no-display-inline" id="H09AEA47DF40347158FAA5CD712334B6E" section-type="subsequent-section"><enum>244.</enum><header>Extension for credit
for alternative fuels and mixtures derived from coal (including peat) through
the Fischer-Tropsch process</header>
<subsection id="H7A17EF8334704913BDBEB52800C0B59F"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsections (d)(4)
and (e)(3) of <external-xref legal-doc="usc" parsable-cite="usc/26/6426">section 6426</external-xref> of the Internal Revenue Code of 1986 (relating to
termination of credits for alternative fuels and mixtures) are each amended by
inserting <quote>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</quote> after <quote>hydrogen</quote>.</text>
</subsection><subsection id="H76D29F81E8F240EB843C45DA475618CD"><enum>(b)</enum><header>Fuels not used
for taxable purposes</header>
<paragraph id="HD92D06B9F8734ADCB6E6FC5D74296A3"><enum>(1)</enum><header>In
general</header><text>Paragraph (5) of section 6427(e) of such Code (relating
to termination) is amended by striking <quote>and</quote> at the end of
subparagraph (C), by striking the period at the end of subparagraph (D) and
inserting <quote>, and</quote>, and by inserting after subparagraph (D) the
following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="HBBFAF906D84C4C4E96C295984B96B3CA" style="OLC">
<subparagraph id="H741A68F0E117448DA9FE29DF69465E63"><enum>(E)</enum><text display-inline="yes-display-inline">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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA8709E940C7C4982A999375D32C11154"><enum>(2)</enum><header>Conforming
amendment</header><text>Section 6427(e)(5)(C) is amended by striking
<quote>subparagraph (D)</quote> and inserting <quote>subparagraphs (D) and
(E)</quote>.</text>
</paragraph></subsection><subsection id="H2BC4D17AC0DE4FA6A18145E679D04E72"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to any sale
or use for any period after September 30, 2009.</text>
</subsection></section></subpart></part><part id="H8AAC5DCFD68C4DE9903800C4BBE9E183"><enum>3</enum><header>Other
conservation provisions</header>
<section id="H8EB764308B984BFFB546302B85F07C43"><enum>251.</enum><header>Qualified
energy conservation bonds</header>
<subsection id="H32A7DE0E6721412988F237E01B009061"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="H57C3D5CB4D2D451F8220762CC43E16D" style="OLC">
<section display-inline="no-display-inline" id="H8ACBA2F4D65D4857A511582D24EB8337" section-type="subsequent-section"><enum>54C.</enum><header>Qualified energy
conservation bonds</header>
<subsection id="HDC58BEE105F748D68879C21C6B00116F"><enum>(a)</enum><header>Qualified energy
conservation bond</header><text>For purposes of this subchapter, the term
<term>qualified energy conservation bond</term> means any bond issued as part
of an issue if—</text>
<paragraph display-inline="no-display-inline" id="H3F14A6C211D5468DAD15DC64CC00B8CD"><enum>(1)</enum><text>100 percent of the
available project proceeds of such issue are to be used for one or more
qualified conservation purposes,</text>
</paragraph><paragraph id="HF54BCC3A38E94B7DA243A23BEFEBC7C0"><enum>(2)</enum><text>the bond is issued
by a State or local government, and</text>
</paragraph><paragraph id="H1D5F042DC67B48D5A2E3E8F99158E535"><enum>(3)</enum><text>the issuer
designates such bond for purposes of this section.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H6EC049A5192C4EF4BD3194B1C3A8AC1"><enum>(b)</enum><header>Limitation on
amount of bonds designated</header><text>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).</text>
</subsection><subsection id="H342F0A8BE0DE409EB1949D85CBE4B2D7"><enum>(c)</enum><header>National
limitation on amount of bonds designated</header><text>There is a national
qualified energy conservation bond limitation of $3,600,000,000.</text>
</subsection><subsection id="H1B6402C28C4842B2A945E828FBBBBDB"><enum>(d)</enum><header>Allocations</header>
<paragraph id="H4D8BE6ACC5804554B14EA08AEC209C"><enum>(1)</enum><header>In
general</header><text>The limitation applicable under subsection (c) shall be
allocated by the Secretary among the States in proportion to the population of
the States.</text>
</paragraph><paragraph id="H4FA6E255817C416B83B838F670C09A3"><enum>(2)</enum><header>Allocations to
largest local governments</header>
<subparagraph id="H60CB47FEEFA4401985E300891EC107E4"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="H0A58C49A89514837B09583DF6586F709"><enum>(B)</enum><header>Allocation of
unused limitation to State</header><text>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.</text>
</subparagraph><subparagraph id="H694D44BA91574782849825C62E2FCD4D"><enum>(C)</enum><header>Large local
government</header><text>For purposes of this section, the term <term>large
local government</term> means any municipality or county if such municipality
or county has a population of 100,000 or more.</text>
</subparagraph></paragraph><paragraph id="HC8B07708362B4B04B0E0B50904188078"><enum>(3)</enum><header>Allocation to
issuers; restriction on private activity bonds</header><text>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.</text>
</paragraph></subsection><subsection id="HDB30FA3F9BEC455680EC7B05AA27CAB7"><enum>(e)</enum><header>Qualified
conservation purpose</header><text>For purposes of this section—</text>
<paragraph id="H63BD8990A70448DD99C51CAF18F1C77F"><enum>(1)</enum><header>In
general</header><text>The term <term>qualified conservation purpose</term>
means any of the following:</text>
<subparagraph id="H9CCC6157B54C4503981B279D0006B3ED"><enum>(A)</enum><text display-inline="yes-display-inline">Capital expenditures incurred for purposes
of—</text>
<clause id="H1CADD56CF72C453C90FABD16E231641D"><enum>(i)</enum><text>reducing energy
consumption in publicly-owned buildings by at least 20 percent,</text>
</clause><clause id="HA99D906BDC154DCFB600640053BD3164"><enum>(ii)</enum><text>implementing
green community programs,</text>
</clause><clause id="HF9B5B9351A644F4FA707AEEC4C8CD424"><enum>(iii)</enum><text>rural
development involving the production of electricity from renewable energy
resources, or</text>
</clause><clause id="HE045A9D073F24BB7BD88C4808585BA11"><enum>(iv)</enum><text>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).</text>
</clause></subparagraph><subparagraph id="H792F382B9C71436F808B187CE6B5B093"><enum>(B)</enum><text>Expenditures with
respect to research facilities, and research grants, to support research
in—</text>
<clause id="HC7A793FAA22845AE00372F031889CC1"><enum>(i)</enum><text>development of
cellulosic ethanol or other nonfossil fuels,</text>
</clause><clause id="H17803B564C77417EB0D5D909C378E084"><enum>(ii)</enum><text>technologies for
the capture and sequestration of carbon dioxide produced through the use of
fossil fuels,</text>
</clause><clause id="H127D6CC1E9E54F20A314DABEED858339"><enum>(iii)</enum><text>increasing the
efficiency of existing technologies for producing nonfossil fuels,</text>
</clause><clause id="H132E733D580D4EF28FE3BF89C5005048"><enum>(iv)</enum><text>automobile
battery technologies and other technologies to reduce fossil fuel consumption
in transportation, or</text>
</clause><clause id="HBA4A66AF4B82446FA9E1A1AF52C014C3"><enum>(v)</enum><text>technologies to
reduce energy use in buildings.</text>
</clause></subparagraph><subparagraph id="HE1CBAB00F5B948F99EBA002252353057"><enum>(C)</enum><text>Mass commuting
facilities and related facilities that reduce the consumption of energy,
including expenditures to reduce pollution from vehicles used for mass
commuting.</text>
</subparagraph><subparagraph id="H43005A85110D42909557E470D328FEC1"><enum>(D)</enum><text>Demonstration
projects designed to promote the commercialization of—</text>
<clause id="HB7780E032A3B49E49CD8CE7DA530B5CF"><enum>(i)</enum><text>green building
technology,</text>
</clause><clause id="H29D45FF4204B4BEDACBA3884F158EF00"><enum>(ii)</enum><text>conversion of
agricultural waste for use in the production of fuel or otherwise,</text>
</clause><clause id="HFE710B15D7EB46A18F83F6DC02442EE4"><enum>(iii)</enum><text>advanced battery
manufacturing technologies,</text>
</clause><clause id="H1A9B765E576246A0ACCCF8E43C00C968"><enum>(iv)</enum><text>technologies to
reduce peak use of electricity, or</text>
</clause><clause id="HE76A2BDF38FC47C1BE4DC300FEF4CD78"><enum>(v)</enum><text>technologies for
the capture and sequestration of carbon dioxide emitted from combusting fossil
fuels in order to produce electricity.</text>
</clause></subparagraph><subparagraph id="H930CB37722214EC0A45627E7B08D789D"><enum>(E)</enum><text>Public education
campaigns to promote energy efficiency.</text>
</subparagraph></paragraph><paragraph id="HDCBAA2C7BCD74185B08D5E85F899007D"><enum>(2)</enum><header>Special rules
for private activity bonds</header><text>For purposes of this section, in the
case of any private activity bond, the term <term>qualified conservation
purposes</term> shall not include any expenditure which is not a capital
expenditure.</text>
</paragraph></subsection><subsection id="H2077B8B3B9DB462EB50057E5D9514045"><enum>(f)</enum><header>Population</header>
<paragraph id="H7616B6F1DF624DC182266274C73DA999"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="HF99C5B88B7724A399EC41EC75DBF5610"><enum>(2)</enum><header>Special rule for
counties</header><text>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.</text>
</paragraph></subsection><subsection display-inline="no-display-inline" id="H1ADBC2E600D248FA8E3E3BF4C9C1CAB6"><enum>(g)</enum><header>Application to
Indian tribal governments</header><text>An Indian tribal government shall be
treated for purposes of this section in the same manner as a large local
government, except that—</text>
<paragraph id="HF8B07AAFA10A4254B2EEF5B5488D70AD"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="H7F478E894638474F863DCCDDB3E406F3"><enum>(2)</enum><text>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.</text>
</paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HBEB2743113E0436BAD71B2BEB4A66FC8"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="H57DCC35DD5B34066B2DA00C12733C759"><enum>(1)</enum><text>Paragraph (1) of
section 54A(d), as added by section 104, is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H056A015F5DD24A79883468DBE02625A6" style="OLC">
<paragraph commented="no" id="H4965EFE504BA4D54A9E7C8A7E32B833"><enum>(1)</enum><header>Qualified tax
credit bond</header><text>The term <term>qualified tax credit bond</term>
means—</text>
<subparagraph id="H9D54581589604D699B9D1C70DE38686C"><enum>(A)</enum><text>a new clean
renewable energy bond, or</text>
</subparagraph><subparagraph id="H6B95B987A26B49DD9FF9975735D10F0"><enum>(B)</enum><text>a qualified energy
conservation bond,</text>
</subparagraph><continuation-text continuation-text-level="paragraph">which is
part of an issue that meets requirements of paragraphs (2), (3), (4), (5), and
(6).</continuation-text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HE5F088B4BF21433F94B88EA7D969CE7B"><enum>(2)</enum><text>Subparagraph (C)
of section 54A(d)(2), as added by section 104, is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="H38C4F2E152154D4AA84F926CE4E37F82" style="OLC">
<subparagraph commented="no" id="H93EB88262DE64FD399CA8CB57BB78BD4"><enum>(C)</enum><header>Qualified
purpose</header><text>For purposes of this paragraph, the term <term>qualified
purpose</term> means—</text>
<clause id="HCCB3941F1AD744C1B058E41F20003C8F"><enum>(i)</enum><text>in
the case of a new clean renewable energy bond, a purpose specified in section
54B(a)(1), and</text>
</clause><clause id="H665D4F48BB664A379DBC1B2B452D424E"><enum>(ii)</enum><text>in the case of a
qualified energy conservation bond, a purpose specified in section
54C(a)(1).</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H52072E025B8249EDAA9D660074AA36CD"><enum>(3)</enum><text display-inline="yes-display-inline">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:</text>
<quoted-block display-inline="no-display-inline" id="H1001010A2D2140B4843590008305B4B9" style="OLC">
<toc container-level="quoted-block-container" idref="H57C3D5CB4D2D451F8220762CC43E16D" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration">
<toc-entry idref="H8ACBA2F4D65D4857A511582D24EB8337" level="section">Sec. 54C. Qualified energy conservation
bonds.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HCBBF9083B9F0429B983F542453E4283F"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to
obligations issued after the date of the enactment of this Act.</text>
</subsection></section><section display-inline="no-display-inline" id="HBD366E81E3694389A379C89E42BC9864" section-type="subsequent-section"><enum>252.</enum><header>Extension and
modification of credit for nonbusiness energy property</header>
<subsection commented="no" id="H5C43A24766AA4FDA8363934F22715E63"><enum>(a)</enum><header>Extension of
credit</header><text display-inline="yes-display-inline">Section 25C(g)
(relating to termination) is amended by striking <quote>December 31,
2007</quote> and inserting <quote>December 31, 2009</quote>.</text>
</subsection><subsection id="H118346B7104A4DA9A89CAAEA4925D280"><enum>(b)</enum><header>Qualified
biomass fuel property</header>
<paragraph id="H77068DF48D3343A3A879B7DE4800DC3F"><enum>(1)</enum><header>In
general</header><text>Section 25C(d)(3) is amended—</text>
<subparagraph id="H8E0DEA78921742E28510F7A8E1CA075"><enum>(A)</enum><text>by striking
<quote>and</quote> at the end of subparagraph (D),</text>
</subparagraph><subparagraph id="H660FB25A288646D18D95B350DE58EF81"><enum>(B)</enum><text>by striking the
period at the end of subparagraph (E) and inserting <quote>, and</quote>,
and</text>
</subparagraph><subparagraph id="HF82AF306F14D4A3CAEAEE35E53E0F488"><enum>(C)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block act-name="" id="H8209AF06755C4BC389ED63476E5FB13" style="OLC">
<subparagraph id="H4AC05656CF664817BA42F1883006BA3"><enum>(F)</enum><text>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.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="H54E8BFDE88674F11A8223BC52ECF5DB9"><enum>(2)</enum><header>Biomass
fuel</header><text>Section 25C(d) (relating to residential energy property
expenditures) is amended by adding at the end the following new
paragraph:</text>
<quoted-block act-name="" id="H6FA0F4B6781546E48F69963677C22086" style="OLC">
<paragraph id="H648347C4A0FE468C93BDE3E1E869D3E8"><enum>(6)</enum><header>Biomass
fuel</header><text>The term <term>biomass fuel</term> 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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HB04BC58FA61A48C0AE64EF50B8DF3CCC"><enum>(c)</enum><header>Coordination
with credit for qualified geothermal heat pump property expenditures</header>
<paragraph id="H39E9A3CF1849425DAD70F7B0B2BCABB0"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="H31740F88E9EB4B0D828861CF5414B0EE"><enum>(2)</enum><header>Conforming
amendment</header><text>Subparagraph (C) of section 25C(d)(2) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H76550819FA934BF2BE20737D592F312D" style="OLC">
<subparagraph id="HE86E9223B9374C14A03440B723C362AD"><enum>(C)</enum><header>Requirements and
standards for air conditioners and heat pumps</header><text display-inline="yes-display-inline">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—</text>
<clause id="H53C793CD8840475599B0D3A172A97B1E"><enum>(i)</enum><text>shall require
measurements to be based on published data which is tested by manufacturers at
95 degrees Fahrenheit, and</text>
</clause><clause id="H440EEDC2F73F457181C9B918F5B769E7"><enum>(ii)</enum><text>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.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HA1031D7478E640B5B3BE417C29347EAA"><enum>(d)</enum><header>Effective
date</header><text>The amendments made this section shall apply to expenditures
made after December 31, 2007.</text>
</subsection></section><section display-inline="no-display-inline" id="HE6889C88DCA14F60BCB59750CFB77300" section-type="subsequent-section"><enum>253.</enum><header>Extension of energy
efficient commercial buildings deduction</header><text display-inline="no-display-inline">Subsection (h) of section 179D (relating to
termination) is amended by striking <quote>December 31, 2008</quote> and
inserting <quote>December 31, 2013</quote>.</text>
</section><section display-inline="no-display-inline" id="H4538AFF430794E929818BE14EAE2194B" section-type="subsequent-section"><enum>254.</enum><header>Modifications of
energy efficient appliance credit for appliances produced after 2007</header>
<subsection id="H4FE33684AF014678B450A75B87AAF5C9"><enum>(a)</enum><header>In
general</header><text>Subsection (b) of section 45M (relating to applicable
amount) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H3004239C272D4411ACA99666B0BFCCF6" style="OLC">
<subsection id="H31B50580EC68400CA56D002B90CB824C"><enum>(b)</enum><header>Applicable
amount</header><text>For purposes of subsection (a)—</text>
<paragraph id="HB6F5D032E57B47D28B172E3DA41D9C00"><enum>(1)</enum><header>Dishwashers</header><text>The
applicable amount is—</text>
<subparagraph id="H25DE4F9A9CCD4348AA89F838B5AC3000"><enum>(A)</enum><text>$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</text>
</subparagraph><subparagraph id="H61EF835E29BE4093A678AC8C21C746DD"><enum>(B)</enum><text>$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).</text>
</subparagraph></paragraph><paragraph id="H8691BFF365F74E0ABED7009E50B8D319"><enum>(2)</enum><header>Clothes
washers</header><text>The applicable amount is—</text>
<subparagraph id="HBFEE7A12449D484090AC2C74C351B8EA"><enum>(A)</enum><text>$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,</text>
</subparagraph><subparagraph id="H2C68BDB2B37A4238A307126C00FF5D85"><enum>(B)</enum><text>$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,</text>
</subparagraph><subparagraph id="H435327E88B4542A5882FF587E7A8EB8E"><enum>(C)</enum><text>$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</text>
</subparagraph><subparagraph id="H785F96BF6A3C440E8E77B6166407F1B"><enum>(D)</enum><text>$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.</text>
</subparagraph></paragraph><paragraph id="HF3650BBBDEE24DFEA3F3713B284AB52"><enum>(3)</enum><header>Refrigerators</header><text>The
applicable amount is—</text>
<subparagraph id="HD06A1936786E428D96013745B9403C6F"><enum>(A)</enum><text>$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,</text>
</subparagraph><subparagraph id="H9FA12B63140F4D6DA92E67942EBED64"><enum>(B)</enum><text>$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,</text>
</subparagraph><subparagraph id="H6547820608BF464E9D72DB006780BBB8"><enum>(C)</enum><text>$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</text>
</subparagraph><subparagraph id="HB083BE26C0D84447931BC01D9054CD5E"><enum>(D)</enum><text>$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.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H84099214957C4595A0B21455832963F7"><enum>(b)</enum><header>Eligible
production</header>
<paragraph id="H2DE03FCFBCF84241BA6C99B09592DCA7"><enum>(1)</enum><header>Similar
treatment for all appliances</header><text>Subsection (c) of section 45M
(relating to eligible production) is amended—</text>
<subparagraph id="HFEEF53D688C54B9C90FA6CC86D5FBA65"><enum>(A)</enum><text>by striking
paragraph (2),</text>
</subparagraph><subparagraph id="H432630F122CF46B09DC78981CA82301B"><enum>(B)</enum><text>by striking
<quote>(1) <header-in-text level="paragraph" style="OLC">In
general</header-in-text></quote> and all that follows through <quote>the
eligible</quote> and inserting <quote>The eligible</quote>, and</text>
</subparagraph><subparagraph id="H66D3CAEA3C644CA2B149C5149DC411C6"><enum>(C)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H9D62BC2C5B744133AC8BB9264CEC5209"><enum>(2)</enum><header>Modification of
base period</header><text>Paragraph (2) of section 45M(c), as amended by
paragraph (1) of this section, is amended by striking <quote>3-calendar
year</quote> and inserting <quote>2-calendar year</quote>.</text>
</paragraph></subsection><subsection id="H0FADA3D74E6248D2A2E4A2C3CEBF9E55"><enum>(c)</enum><header>Types of energy
efficient appliances</header><text>Subsection (d) of section 45M (defining
types of energy efficient appliances) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H9C44F10858E246BAB35288EEE0FD67F3" style="OLC">
<subsection id="H7C236F5DD0EF4F0BAD724FF8C7A59672"><enum>(d)</enum><header>Types of energy
efficient appliance</header><text display-inline="yes-display-inline">For
purposes of this section, the types of energy efficient appliances are—</text>
<paragraph id="HB0E02B21E4084726BC00EB01FAB81998"><enum>(1)</enum><text>dishwashers
described in subsection (b)(1),</text>
</paragraph><paragraph id="H2AD6A6B458004F9AABF8A3AF4F3F726B"><enum>(2)</enum><text>clothes washers
described in subsection (b)(2), and</text>
</paragraph><paragraph id="H6381FE72D38640BE00E6565CA4F33072"><enum>(3)</enum><text>refrigerators
described in subsection
(b)(3).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HDD5DDE578103480C9E66FF1097A8A5E9"><enum>(d)</enum><header>Aggregate credit
amount allowed</header>
<paragraph id="H2FFBC1E3496B4D9E989BC17D0451B197"><enum>(1)</enum><header>Increase in
limit</header><text>Paragraph (1) of section 45M(e) (relating to aggregate
credit amount allowed) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H3A0D0D9FCA7F43BA8EBAA4298C308810" style="OLC">
<paragraph id="HD8CB55B650444076AD1439B76D395685"><enum>(1)</enum><header>Aggregate credit
amount allowed</header><text display-inline="yes-display-inline">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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H45D60B058A6B4877B9AA3E2BD4CD87BB"><enum>(2)</enum><header>Exception for
certain refrigerator and clothes washers</header><text>Paragraph (2) of section
45M(e) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H8242E9BB892A42CA97E8737E300A868" style="OLC">
<paragraph id="HE27DC8487A824D5B9B178C00195889F0"><enum>(2)</enum><header>Amount allowed
for certain refrigerators and clothes washers</header><text display-inline="yes-display-inline">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).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H4B618E84378641A9B4C32F88E681B1EA"><enum>(e)</enum><header>Qualified energy
efficient appliances</header>
<paragraph id="H8E892613533840F3855952F0800D200"><enum>(1)</enum><header>In
general</header><text>Paragraph (1) of section 45M(f) (defining qualified
energy efficient appliance) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="H216204957B174EF2B55CD58E9DDAF600" style="OLC">
<paragraph id="H2F093A376CA7468193261D5100F2AAC4"><enum>(1)</enum><header>Qualified energy
efficient appliance</header><text display-inline="yes-display-inline">The term
<term>qualified energy efficient appliance</term> means—</text>
<subparagraph id="HC3E48D06B50B4671B7C4BDADF2BBC75"><enum>(A)</enum><text display-inline="yes-display-inline">any dishwasher described in subsection
(b)(1),</text>
</subparagraph><subparagraph id="H1CA9124868CB49E49F166B45266023B9"><enum>(B)</enum><text>any clothes washer
described in subsection (b)(2), and</text>
</subparagraph><subparagraph id="H45CE2D21392046EB86A2059C07511D77"><enum>(C)</enum><text>any refrigerator
described in subsection
(b)(3).</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="HA7A9B11CD3A344B6AC69E22923CF80A5"><enum>(2)</enum><header>Clothes
washer</header><text>Section 45M(f)(3) (defining clothes washer) is amended by
inserting <quote>commercial</quote> before <quote>residential</quote> the
second place it appears.</text>
</paragraph><paragraph id="H0FF035BF620F4BFA8C802E9DCB205ED"><enum>(3)</enum><header>Top-loading
clothes washer</header><text>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:</text>
<quoted-block display-inline="no-display-inline" id="H32A5285C42C74ACE8808E901C87F5A7" style="OLC">
<paragraph id="HCDD1B60B709F442BA67BF4BFCA3CB578"><enum>(4)</enum><header>Top-loading
clothes washer</header><text display-inline="yes-display-inline">The term
<quote>top-loading clothes washer</quote> 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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H20557F97FACC48CEAC29A196D093758D"><enum>(4)</enum><header>Replacement of
energy factor</header><text>Section 45M(f)(6), as redesignated by paragraph
(3), is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="HD4740E428E98437DAE2461AFC8E9E56E" style="OLC">
<paragraph id="H9BCB9516699F402482C6811257211D2F"><enum>(6)</enum><header>Modified energy
factor</header><text display-inline="yes-display-inline">The term
<term>modified energy factor</term> means the modified energy factor
established by the Department of Energy for compliance with the Federal energy
conservation
standard.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H1BECC9CCC84F4FCDA8BBD40061AD5BA4"><enum>(5)</enum><header>Gallons per
cycle; water consumption factor</header><text>Section 45M(f) (relating to
definitions), as amended by paragraph (3), is amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="H0E3D30BC48C14E6DBD03DF1CD276F04F" style="OLC">
<paragraph id="H0F0E8AD2E2284ED7B1BE7188714B8307"><enum>(9)</enum><header>Gallons per
cycle</header><text display-inline="yes-display-inline">The term <term>gallons
per cycle</term> means, with respect to a dishwasher, the amount of water,
expressed in gallons, required to complete a normal cycle of a
dishwasher.</text>
</paragraph><paragraph id="HF3EE9EC079834636BEF93CE67315088B"><enum>(10)</enum><header>Water
consumption factor</header><text display-inline="yes-display-inline">The term
<term>water consumption factor</term> 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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="H7D60FB013BF5430492F80549A7D5ACF7"><enum>(f)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to appliances produced after December 31, 2007.</text>
</subsection></section><section display-inline="no-display-inline" id="H67F37307108B4172B335DCAAADCED15" section-type="subsequent-section"><enum>255.</enum><header>Five-year applicable
recovery period for depreciation of qualified energy management
devices</header>
<subsection id="H059D491D0F05418FAE963B00831EEE1E"><enum>(a)</enum><header>In
general</header><text>Section 168(e)(3)(B) (relating to 5-year property) is
amended by striking <quote>and</quote> at the end of clause (v), by striking
the period at the end of clause (vi) and inserting <quote>, and</quote>, and by
inserting after clause (vi) the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="H9412C812EFCA4179B65DD445F37E93A3" style="OLC">
<clause id="HBD9B5A1977E648C58EFF622F5044F600"><enum>(vii)</enum><text>any qualified
energy management
device.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="HCFFA6A8EA7FF4BFFB64DA91CF80488CD"><enum>(b)</enum><header>Definition of
qualified energy management device</header><text>Section 168(i) (relating to
definitions and special rules) is amended by inserting at the end the following
new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HD1C3FB891A4D4AD999ABF8BAF63CBA97" style="OLC">
<paragraph id="H7719A9ACC88348B4B056CF87C6EDB72D"><enum>(18)</enum><header>Qualified
energy management device</header>
<subparagraph id="HF90139D3BA674D7684A7F119AAD2E17"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified energy management device</term>
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—</text>
<clause id="H79B7C4C30F1448C6BBAB00C73D00B2E4"><enum>(i)</enum><text>is
a supplier of electric energy or a provider of electric energy services,
and</text>
</clause><clause id="HF35FAF352425432EBF259DC0E290C7A4"><enum>(ii)</enum><text>provides all
commercial and residential customers of such supplier or provider with net
metering upon the request of such customer.</text>
</clause></subparagraph><subparagraph id="H75B763BE608A453DAE20C4EF41E53364"><enum>(B)</enum><header>Energy
management device</header><text>For purposes of subparagraph (A), the term
<term>energy management device</term> means any time-based meter and related
communication equipment which is capable of being used by the taxpayer as part
of a system that—</text>
<clause id="H1E65E250E01840CEAB15FB03E045F914"><enum>(i)</enum><text>measures and
records electricity usage data on a time-differentiated basis in at least 24
separate time segments per day,</text>
</clause><clause id="H1F91905BCF3D4BE287521843E100E400"><enum>(ii)</enum><text>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</text>
</clause><clause id="H645567BBF0FF47BAB248AFCAC2E099EE"><enum>(iii)</enum><text>provides data to
such supplier or provider so that the supplier or provider can provide energy
usage information to customers electronically.</text>
</clause></subparagraph><subparagraph id="H39E747C3CE66420F9CE7C578C0FD5D81"><enum>(C)</enum><header>Net
metering</header><text>For purposes of subparagraph (A), the term <term>net
metering</term> means allowing customers a credit for providing electricity to
the supplier or
provider.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H02AD3CE0F16242D0BDA305FC3DE5DE0"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to property
placed in service after the date of the enactment of this Act.</text>
</subsection></section><section id="HBF7237FF98B94EEEA6EE00002CDCB377"><enum>256.</enum><header>Clarification
of eligibility for certain fuels credits for fuel with insufficient nexus to
the United States</header>
<subsection commented="no" display-inline="no-display-inline" id="H023384516D5A42EB8B1D307479329F99"><enum>(a)</enum><header>In
general</header>
<paragraph commented="no" id="H6B5C3991D8634246AF68667100BF9DE8"><enum>(1)</enum><header>Alcohol
credit</header><text>Subsection (d) of section 40 is amended by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H434AB507320E49F3B5E8F569412D3E9B" style="OLC">
<paragraph commented="no" id="HF16EE52F165B45F1BA004CB23838DB00"><enum>(6)</enum><header>Limitation to
alcohol with connection to the United States</header>
<subparagraph id="H10F06965161A4BD68FD0C297888275DE"><enum>(A)</enum><header>Alcohol
credit</header><text>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.</text>
</subparagraph><subparagraph id="H874996F622BD48FCB7BD7EE5CA46A46E"><enum>(B)</enum><header>Alcohol mixture
credit</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HCDD292ADFC9E4833A2B2F2B0D534C830"><enum>(C)</enum><header display-inline="yes-display-inline">No credits for alcohol destined for
export</header><text display-inline="yes-display-inline">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).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HD4D32FBC07FA4715B7D6DA71E25801D"><enum>(D)</enum><header display-inline="yes-display-inline">Special rule for small producer
credits</header><text display-inline="yes-display-inline">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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="H109114D628564ACDA19928829146F637"><enum>(2)</enum><header>Biodiesel
credit</header><text>Subsection (d) of section 40A is amended by adding at the
end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H3FB9A2B78589428D854671AC009593E3" style="OLC">
<paragraph commented="no" id="H94A2DB9990194533BEFDF7FA457100"><enum>(5)</enum><header>Limitation to
biodiesel with connection to the United States</header>
<subparagraph id="HA93DD74D0AC342D6A947F1A38C6C8E6D"><enum>(A)</enum><header>Biodiesel
credit</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="HAD61F5734D61444A81CBABD04294FCDD"><enum>(B)</enum><header>Biodiesel
mixture credit</header><text>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.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HBA76FE4AC400499FB6CA8C79525D84E0"><enum>(C)</enum><header display-inline="yes-display-inline">No credits for biodiesel destined for
export</header><text display-inline="yes-display-inline">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).</text>
</subparagraph><subparagraph id="H54FAC234D4E147B4A79173F7C27975C4"><enum>(D)</enum><header>Special rule for
small agri-biodiesel producer credit</header><text>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.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="H10EC2540771A4556AFCDFB006D3486FB"><enum>(3)</enum><header>Excise tax
credits</header><text>Section 6426 is amended by adding at the end the
following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="H49F4D540E9F941B9858BACA003C005C" style="OLC">
<subsection commented="no" id="H47B8076447A2404686BA3B6654943CEC"><enum>(h)</enum><header>Limitation to
fuels with connection to the United States</header>
<paragraph id="HDF519A936C394B4988E879C5D83E57CB"><enum>(1)</enum><header>Mixture
credits</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="HC7A42802A05D485FA1DD0026502D57B0"><enum>(2)</enum><header>Alternative fuel
credit</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HC53B85B59E184AE5A047FBF35FD72115"><enum>(3)</enum><header display-inline="yes-display-inline">No credits for fuels destined for
export</header><text display-inline="yes-display-inline">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).</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" id="HF6AD6BFCF4BF480993C8B3C46926AD5F"><enum>(4)</enum><header>Payments</header><text>Subsection
(e) of section 6427 is amended by redesignating paragraph (5) as paragraph (6)
and by inserting after paragraph (4) the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H5A644D8C532A4FEB0031EA24D880CDC" style="OLC">
<paragraph commented="no" id="H5A13DAD1186C4D2195B91F44022D5D88"><enum>(5)</enum><header>Limitation to
fuels with connection to the United States</header><text>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).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="HD0176C17D2514EBD82760042AFF152DB"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to fuel sold
or used after the date of the enactment of this Act.</text>
</subsection></section></part></subtitle><enum>III</enum><header>Research and
Development</header>
<section id="H3BC27B55104C4C2CA2DA6F7C04D8B24B"><enum>301.</enum><header>Blended
fuels</header><text display-inline="no-display-inline">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—</text>
<paragraph id="H7A1CC2B80C764E61A079DD474DD10BD"><enum>(1)</enum><text>maximizing the
fungibility and supply of blended transportation fuels;</text>
</paragraph><paragraph id="H61F9DC8A65C24108988C197BCBFAC783"><enum>(2)</enum><text>the viability of
the blend as a cost competitive replacement for transportation fuels;</text>
</paragraph><paragraph id="H4E8137C4794B428AB504A39F992FF152"><enum>(3)</enum><text>evaluation of the
environmental consequences of the blend on evaporative and exhaust emissions
from on-road and off-road engines;</text>
</paragraph><paragraph id="H4BBFFA94B3E04EC3BAC2ADBF5D132148"><enum>(4)</enum><text>the quality of the
resultant blend at varying concentrations of biofuel; and</text>
</paragraph><paragraph id="H8F0E967CC6594096978885EA95A946D5"><enum>(5)</enum><text>other areas the
Secretary considers appropriate.</text>
</paragraph></section><section id="HBBD19EC272FE428A9FD31EECAF74FF3F"><enum>302.</enum><header>Cellulosic
Ethanol</header>
<subsection id="H1693F49AAF9B4C8F9BD0D208EE98667"><enum>(a)</enum><header>Bioenergy
Research Centers</header><text display-inline="yes-display-inline">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.</text>
</subsection><subsection id="H892F1CE3A51D4A309BA273001C38688D"><enum>(b)</enum><header>Authorization of
appropriations</header><text>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.</text>
</subsection></section>