[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6009 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6009

 To leverage market forces to bring greater efficiency and capacity to 
domestic refineries, to bring new sources of domestic energy to market, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 8, 2008

Mr. English of Pennsylvania (for himself and Mr. Alexander) introduced 
  the following bill; which was referred to the Committee on Natural 
 Resources, and in addition to the Committees on Energy and Commerce, 
the Judiciary, Ways and Means, and Foreign Affairs, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
 To leverage market forces to bring greater efficiency and capacity to 
domestic refineries, to bring new sources of domestic energy to market, 
                        and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Affordable Fuel 
for Consumers Act of 2008''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                      TITLE I--GENERAL PROVISIONS

Sec. 101. Sense of Congress.
Sec. 102. Cap and reduction of boutique fuels.
Sec. 103. Antitrust prohibition of certain conduct by oil producing 
                            cartels.
Sec. 104. Report to Congress on energy bottlenecks and barriers.
                        TITLE II--TAX PROVISIONS

Sec. 201. 60-day suspension of fuel taxes on highway motor fuels.
Sec. 202. Temporary expensing of oil and natural gas exploration and 
                            production property.
Sec. 203. Incentives for extraction and processing of oil shale.
                    TITLE III--OIL AND GAS DRILLING

              Subtitle A--Arctic National Wildlife Refuge

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

Sec. 321. Termination of prohibitions on expenditures for, and 
                            withdrawals from, offshore leasing.
Sec. 322. Outer Continental Shelf leasing program.
Sec. 323. Sharing of revenues.
Subtitle C--Prohibition on Exportation of Alaskan North Slope Crude Oil

Sec. 331. Prohibition on exportation of Alaskan North Slope crude oil.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. SENSE OF CONGRESS.

    It is the sense of the Congress that the President should stop 
filling the Strategic Petroleum Reserve until the price of petroleum no 
longer has a major adverse impact on the national economy.

SEC. 102. CAP AND REDUCTION OF BOUTIQUE FUELS.

    (a) EPA Approval of State Plans With Boutique Fuels.--Section 
211(c)(4) of the Clean Air Act (42 U.S.C. 7545(c)(4)) is amended by 
adding the following at the end thereof:
    ``(D) In the case of gasoline, after the enactment of this 
subparagraph, the Administrator may give a preference to the approval 
of State implementation plan provisions described in subparagraph (C) 
if the control or prohibition in such provisions requires the use of 
either of the following:
            ``(i) Reformulated gasoline as defined in subsection (k).
            ``(ii) Gasoline having a Reid Vapor Pressure of 7.0 or 7.8 
        pounds per square inch (psi) for the high ozone season (as 
        determined by the Administrator).
The Administrator shall have no authority, when considering State 
implementation plan revisions under subparagraph (C), to approve any 
fuel or fuel additive if the effect of such approval would be to 
increase the total number of fuels and fuel additives approved in all 
State implementation plans nationwide prior to June 1, 2004.''.
    (b) Cross Reference.--Section 211(c)(4)(C) of the Clean Air Act (42 
U.S.C. 7545(c)(4)(C)) is amended by adding the following at the end 
thereof: ``After the date of enactment of subparagraph (D) of this 
paragraph, any State implementation plan revision under this 
subparagraph involving gasoline shall be considered only pursuant to 
both this subparagraph and subparagraph (D).''.
    (c) Study.--The Administrator of the Environmental Protection 
Agency, in cooperation with the Secretary of Energy, shall undertake a 
study of the effects on air quality, on the number of fuel blends, on 
fuel availability, and on fuel costs of the State plan provisions 
adopted pursuant to section 211(c)(4)(D) of the Clean Air Act. In 
carrying out such study, the Administrator shall obtain comments from 
affected parties. The Administrator shall submit the results of such 
study to the Congress not later than 18 months after the enactment of 
this Act, together with any recommended legislative changes to the list 
of fuels in section 211(c)(4)(D), which, if expanded, shall not exceed 
10 fuels.

SEC. 103. ANTITRUST PROHIBITION OF CERTAIN CONDUCT BY OIL PRODUCING 
              CARTELS.

    (a) Antitrust Amendment.--The Sherman Act (15 U.S.C. 1 et seq.) is 
amended by adding after section 7 the following:
    ``Sec. 7A. (a) It shall be illegal and a violation of this Act for 
any foreign state, or any instrumentality or agent of any foreign 
state, to act collectively or in combination with any other foreign 
state, any instrumentality or agent of any other foreign state, or any 
other person, whether by cartel or any other association or form of 
cooperation or joint action--
            ``(1) to limit the production or distribution of oil, 
        natural gas, or any other petroleum product;
            ``(2) to set or maintain the price of oil, natural gas, or 
        any petroleum product; or
            ``(3) to otherwise take any action in restraint of trade 
        for oil, natural gas, or any petroleum product;
when such action, combination, or collective action has a direct, 
substantial, and reasonably foreseeable effect on the market, supply, 
price, or distribution of oil, natural gas, or other petroleum product 
in the United States.
    ``(b) A foreign state engaged in conduct in violation of subsection 
(a) shall not be immune under the doctrine of sovereign immunity from 
the jurisdiction or judgments of the courts of the United States in any 
action brought to enforce this section.
    ``(c) No court of the United States shall decline, based on the act 
of state doctrine, to make a determination on the merits in an action 
brought under this section.
    ``(d) The Attorney General of the United States may bring an action 
to enforce this section in any district court of the United States as 
provided under the antitrust laws.''.
    (b) Sovereign Immunity.--Section 1605(a) of title 28, United States 
Code, is amended--
            (1) in paragraph (6), by striking ``or'' after the 
        semicolon;
            (2) in paragraph (7), by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following:
            ``(8) in which the action is brought under section 7A of 
        the Sherman Act.''.

SEC. 104. REPORT TO CONGRESS ON ENERGY BOTTLENECKS AND BARRIERS.

    Not later than one year after the date of enactment of this Act, 
the Comptroller General shall transmit to the Congress a report 
containing the results of a study on the effectiveness of our Nation's 
energy supply, and limitations on the current energy infrastructure, 
with emphasis on areas that create artificial shortages, long-term 
supply problems, and higher costs. The study shall compare regional 
differences in supply and cost of energy, and reasons for such 
differences.

                        TITLE II--TAX PROVISIONS

SEC. 201. 60-DAY SUSPENSION OF FUEL TAXES ON HIGHWAY MOTOR FUELS.

    (a) In General.--Section 4081 of the Internal Revenue Code of 1986 
(relating to imposition of tax on motor and aviation fuels) is amended 
by adding at the end the following new subsection:
    ``(f) 60-Day Suspension of Highway Motor Fuel Taxes.--
            ``(1) In general.--During the suspension period, no tax 
        shall be imposed by section 4041 or 4081 on highway motor fuel.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) Suspension period.--The term `suspension 
                period' means the 60-day period beginning on the day 
                after the date of the enactment of this section.
                    ``(B) Highway motor fuel.--The term `highway motor 
                fuel' means any fuel subject to tax under section 4041 
                or 4081 other than aviation gasoline and aviation-grade 
                kerosene.
            ``(3) Preemption of state law.--No State tax may be 
        increased by reason of any suspension of tax under this 
        subsection.''.
    (b) Maintenance of Trust Funds Deposits; Amounts Appropriated to 
Trust Funds Treated as Taxes.--
            (1) In general.--There is hereby appropriated (out of any 
        money in the Treasury not otherwise appropriated) to each trust 
        fund which would (but for this subsection) receive reduced 
        revenues as a result of suspending a tax referred to in section 
        4081(f)(1) of the Internal Revenue Code of 1986 (as added by 
        this section) an amount equal to such reduction in revenues. 
        Amounts appropriated by the preceding sentence to any trust 
        fund--
                    (A) shall be transferred from the general fund at 
                such times and in such manner as to replicate to the 
                extent possible the transfers which would have occurred 
                had subsection (a) not been enacted, and
                    (B) shall be treated for all purposes of Federal 
                law as taxes received under the appropriate section 
                referred to in such section 4081(f)(1).
    (c) Effective Date.--The amendment made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 202. TEMPORARY EXPENSING OF OIL AND NATURAL GAS EXPLORATION AND 
              PRODUCTION PROPERTY.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
179E the following new section:

``SEC. 179F. TEMPORARY EXPENSING OF OIL AND NATURAL GAS EXPLORATION AND 
              PRODUCTION PROPERTY .

    ``(a) Treatment as Expenses.--At the election of the taxpayer, 
there shall be allowed as a deduction an amount equal to the cost paid 
or incurred by the taxpayer during the taxable year for qualified oil 
and gas production property. The deduction under the preceding sentence 
with respect to any property shall be allowed for the taxable year in 
which such property is placed in service.
    ``(b) Qualified Oil and Gas Production Property.--For purposes of 
this section--
            ``(1) In general.--The term `qualified oil and gas 
        production property' means any property--
                    ``(A) the original use of which begins with the 
                taxpayer, and
                    ``(B) which is described in any of the following 
                assets classes under Revenue Procedure 87-56:
                            ``(i) 13.0 (relating to assets used in 
                        offshore drilling for oil and gas).
                            ``(ii) 13.1 (relating to drilling of oil 
                        and gas wells).
                            ``(iii) 13.2 (relating to exploration for 
                        and production of petroleum and natural gas 
                        deposits).
            ``(2) Application of section.--This section shall apply to 
        any property only if--
                    ``(A)(i) no written binding contract for the 
                construction of such property was in effect on or 
                before May 8, 2008, or
                    ``(ii) in the case of self-constructed property, 
                the construction of such property did not commence on 
                or before such date, and
                    ``(B) such property is placed in service before 
                January 1, 2012.
            ``(3) Special rule for sale-leasebacks.--For purposes of 
        paragraph (1)(A), if property is--
                    ``(A) originally placed in service after the date 
                of the enactment of this section by a person, and
                    ``(B) sold and leased back by such person within 3 
                months after the date such property was originally 
                placed in service,
        such property shall be treated as originally placed in service 
        not earlier than the date on which such property is used under 
        the leaseback referred to in subparagraph (B).
    ``(c) Basis Reduction.--
            ``(1) In general.--For purposes of this title, the basis of 
        any property shall be reduced by the portion of the cost of 
        such property taken into account under subsection (a).
            ``(2) Ordinary income recapture.--For purposes of section 
        1245, the amount of the deduction allowable under subsection 
        (a) with respect to any property which is of a character 
        subject to the allowance for depreciation shall be treated as a 
        deduction allowed for depreciation under section 167.
    ``(d) Election.--
            ``(1) In general.--An election under this section for any 
        taxable year shall be made on the taxpayer's return of the tax 
        imposed by this chapter for the taxable year.
            ``(2) Election irrevocable.--Any election made under this 
        section may not be revoked except with the consent of the 
        Secretary.
    ``(e) Election To Allocate Deduction to Cooperative Owner.--A rule 
similar to the rule of section 179C(g) shall apply for purposes of this 
section.''.
    (b) Conforming Amendments.--
            (1) Section 263(a)(1) of such Code is amended by striking 
        ``or'' at the end of subparagraph (K), by striking the period 
        at the end of subparagraph (L) and inserting ``, or'', and by 
        inserting after subparagraph (L) the following new 
        subparagraph:
                    ``(M) expenditures for which a deduction is allowed 
                under section 179F.''.
            (2) Section 263A(c)(3) of such Code is amended by inserting 
        ``179F,'' after ``179B,''.
            (3) Section 312(k)(3)(B) of such Code is amended by 
        striking ``or 179E'' each place it appears in the heading and 
        text and inserting ``179E, or 179F''.
            (4) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (36), by striking the period at 
        the end of paragraph (37) and inserting ``, or'', and by adding 
        at the end the following new paragraph:
            ``(38) to the extent provided in section 179F(c).''.
            (5) Section 1245(a) of such Code is amended by inserting 
        ``179F,'' after ``179E,'' both places it appears in paragraphs 
        (2)(C) and (3)(C).
            (6) The table of sections for part VI of subchapter B of 
        chapter 1 of such Code is amended by inserting after the item 
        relating to section 179C the following new item:

``Sec. 179F. Temporary expensing of oil and natural gas exploration and 
                            production property.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to costs paid or incurred after the date of the enactment of this 
Act in taxable years ending after such date.

SEC. 203. INCENTIVES FOR EXTRACTION AND PROCESSING OF OIL SHALE.

    (a) Investment Tax Credit for Extraction and Processing of Oil 
Shale Using In-Situ Conversion Technology.--
            (1) In general.--Subpart E of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        inserting after section 48B the following new section:

``SEC. 48C. OIL SHALE EXTRACTION AND PROCESSING FACILITY.

    ``(a) General Rule.--For purposes of section 46, the oil shale 
extraction and processing credit for any taxable year is 30 percent of 
the cost of any qualified oil shale extraction and processing property.
    ``(b) Qualified Oil Shale Extraction and Processing Property.--The 
term `qualified oil shale extraction and processing property' means 
property of a character subject to the allowance for depreciation--
            ``(1) which is used in the United States solely to extract 
        and process oil shale using in-situ conversion technology,
            ``(2) the original use of which commences with the taxpayer 
        after the date of the enactment of this section,
            ``(3) which is acquired by the taxpayer by purchase (as 
        defined in section 179(d)) after the date of the enactment of 
        this subsection, but only if no written binding contract for 
        the acquisition was in effect on or before the date of the 
        enactment of this subsection, and
            ``(4) which is placed in service by the taxpayer before 
        January 1, 2019.
    ``(c) Special Rule for Certain Subsidized Property.--For purposes 
of this section, rules similar to the rules of section 48(a)(4) shall 
apply.
    ``(d) Denial of Double Benefit.--A deduction or credit shall not be 
allowed under any other provision of this chapter for the cost taken 
into account under subsection (a).''.
            (2) Credit treated as part of investment credit.--Section 
        46 is amended by striking ``and'' at the end of paragraph (4), 
        by striking the period at the end of paragraph (5) and 
        inserting ``, and'', and by adding at the end the following new 
        paragraph:
            ``(6) the oil shale extraction and processing credit.''.
            (3) Conforming amendments.--
                    (A) Section 49(a)(1)(C) is amended by striking 
                ``and'' at the end of clause (iv), by striking the 
                period at the end of clause (v) and inserting ``, 
                and'', and by adding at the end the following new 
                clause:
                            ``(vi) the basis of any qualified oil shale 
                        extraction and processing property.''.
                    (B) The table of sections for subpart E of part IV 
                of subchapter A of chapter 1 is amended by inserting 
                after the item relating to section 48B the following 
                new item:

``Sec. 48C. Oil shale extraction and processing facility.''.
    (b) Expensing Oil Shale Extraction and Processing Property.--Part 
VI of subchapter B of chapter 1 of such Code is amended by inserting 
after section 179F the following new section:

``SEC. 179G. ELECTION TO EXPENSE CERTAIN OIL SHALE EXTRACTION AND 
              PROCESSING PROPERTY.

    ``(a) Treatment as Expenses.--A taxpayer may elect to treat the 
cost of any qualified oil shale extraction and processing property as 
an expense which is not chargeable to capital account. Any cost so 
treated shall be allowed as a deduction for the taxable year in which 
the expense is incurred.
    ``(b) Election.--
            ``(1) In general.--An election under this section for any 
        taxable year shall be made on the taxpayer's return of the tax 
        imposed by this chapter for the taxable year. Such election 
        shall be made in such manner as the Secretary may by 
        regulations prescribe.
            ``(2) Election irrevocable.--Any election made under this 
        section may not be revoked except with the consent of the 
        Secretary.
    ``(c) Qualified Oil Shale Extraction and Processing Property.--For 
purposes of this section--
            ``(1) The term `qualified oil shale extraction and 
        processing property' means any property located in the United 
        States--
                    ``(A) the original use of which commences with the 
                taxpayer and which original use is solely to extract or 
                process oil shale, and
                    ``(B) which is placed in service by the taxpayer 
                after the date of the enactment of this section and 
                before January 1, 2019.
    ``(d) Election To Allocate Deduction to Cooperative Owner.--If--
            ``(1) a taxpayer to which subsection (a) applies is an 
        organization to which part I of subchapter T applies, and
            ``(2) one or more persons directly holding an ownership 
        interest in the taxpayer are organizations to which part I of 
        subchapter T apply,
the taxpayer may elect to allocate all or a portion of the deduction 
allowable under subsection (a) to such persons. Such allocation shall 
be equal to the person's ratable share of the total amount allocated, 
determined on the basis of the person's ownership interest in the 
taxpayer. The taxable income of the taxpayer shall not be reduced under 
section 1382 by reason of any amount to which the preceding sentence 
applies.
    ``(e) Basis Reduction.--
            ``(1) In general.--For purposes of this title, if a 
        deduction is allowed under this section with respect to any 
        qualified oil shale extraction and processing property, the 
        basis of such property shall be reduced by the amount of the 
        deduction so allowed.
            ``(2) Ordinary income recapture.--For purposes of section 
        1245, the amount of the deduction allowable under subsection 
        (a) with respect to any property which is of a character 
        subject to the allowance for depreciation shall be treated as a 
        deduction allowed for depreciation under section 167.
    ``(f) Application With Other Deductions and Credits.--
            ``(1) Other deductions.--No deduction shall be allowed 
        under any other provision of this chapter with respect to any 
        expenditure with respect to which a deduction is allowed under 
        subsection (a) to the taxpayer.
            ``(2) Credits.--No credit shall be allowed under section 38 
        with respect to any amount for which a deduction is allowed 
        under subsection (a).
    ``(g) Reporting.--No deduction shall be allowed under subsection 
(a) to any taxpayer for any taxable year unless such taxpayer files 
with the Secretary a report containing such information with respect to 
the operation of the property of the taxpayer as the Secretary shall 
require.''.
    (c) Conforming Amendments.--
            (1) Section 1016(a) of such Code is amended by striking 
        ``and'' at the end of paragraph (37), by striking the period at 
        the end of paragraph (38) and inserting ``, and'', and by 
        adding at the end the following new paragraph:
            ``(39) to the extent provided in section 179G(e)(1).''.
            (2) Section 1245(a) of such Code is amended by inserting 
        ``179G,'' after ``179F,'' both places it appears in paragraphs 
        (2)(C) and (3)(C).
            (3) Section 263(a)(1) of such Code is amended by striking 
        ``or'' at the end of subparagraph (L), by striking the period 
        at the end of subparagraph (M) and inserting ``, or'', and by 
        inserting after subparagraph (M) the following new 
        subparagraph:
                    ``(N) expenditures for which a deduction is allowed 
                under section 179G.''.
            (4) Section 312(k)(3)(B) of such Code is amended by 
        striking ``or 179F'' each place it appears in the heading and 
        text and inserting ``179F, or 179G''.
            (5) The table of sections for part VI of subchapter B of 
        chapter 1 of such Code is amended by inserting after the item 
        relating to section 179F the following new item:

``Sec. 179G. Election to expense certain oil shale extraction and 
                            processing property.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to properties placed in service after the date of the enactment 
of this Act.

                    TITLE III--OIL AND GAS DRILLING

              Subtitle A--Arctic National Wildlife Refuge

SEC. 301. DEFINITIONS.

    In this subtitle:
            (1) Coastal plain.--The term ``Coastal Plain'' means that 
        area described in appendix I to part 37 of title 50, Code of 
        Federal Regulations.
            (2) Secretary.--The term ``Secretary'', except as otherwise 
        provided, means the Secretary of the Interior or the 
        Secretary's designee.

SEC. 302. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.

    (a) In General.--The Secretary shall take such actions as are 
necessary--
            (1) to establish and implement, in accordance with this 
        subtitle and acting through the Director of the Bureau of Land 
        Management in consultation with the Director of the United 
        States Fish and Wildlife Service, a competitive oil and gas 
        leasing program that will result in an environmentally sound 
        program for the exploration, development, and production of the 
        oil and gas resources of the Coastal Plain; and
            (2) to administer the provisions of this subtitle through 
        regulations, lease terms, conditions, restrictions, 
        prohibitions, stipulations, and other provisions that ensure 
        the oil and gas exploration, development, and production 
        activities on the Coastal Plain will result in no significant 
        adverse effect on fish and wildlife, their habitat, subsistence 
        resources, and the environment, including, in furtherance of 
        this goal, by requiring the application of the best 
        commercially available technology for oil and gas exploration, 
        development, and production to all exploration, development, 
        and production operations under this subtitle in a manner that 
        ensures the receipt of fair market value by the public for the 
        mineral resources to be leased.
    (b) Repeal.--
            (1) Repeal.--Section 1003 of the Alaska National Interest 
        Lands Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
            (2) Conforming amendment.--The table of contents in section 
        1 of such Act is amended by striking the item relating to 
        section 1003.
    (c) Compliance With Requirements Under Certain Other Laws.--
            (1) Compatibility.--For purposes of the National Wildlife 
        Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
        seq.), the oil and gas leasing program and activities 
        authorized by this section in the Coastal Plain are deemed to 
        be compatible with the purposes for which the Arctic National 
        Wildlife Refuge was established, and no further findings or 
        decisions are required to implement this determination.
            (2) Adequacy of the department of the interior's 
        legislative environmental impact statement.--The ``Final 
        Legislative Environmental Impact Statement'' (April 1987) on 
        the Coastal Plain prepared pursuant to section 1002 of the 
        Alaska National Interest Lands Conservation Act of 1980 (16 
        U.S.C. 3142) and section 102(2)(C) of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is 
        deemed to satisfy the requirements under the National 
        Environmental Policy Act of 1969 that apply with respect to 
        prelease activities, including actions authorized to be taken 
        by the Secretary to develop and promulgate the regulations for 
        the establishment of a leasing program authorized by this 
        subtitle before the conduct of the first lease sale.
            (3) Compliance with nepa for other actions.--Before 
        conducting the first lease sale under this subtitle, the 
        Secretary shall prepare an environmental impact statement under 
        the National Environmental Policy Act of 1969 with respect to 
        the actions authorized by this subtitle that are not referred 
        to in paragraph (2). Notwithstanding any other law, the 
        Secretary is not required to identify nonleasing alternative 
        courses of action or to analyze the environmental effects of 
        such courses of action. The Secretary shall only identify a 
        preferred action for such leasing and a single leasing 
        alternative, and analyze the environmental effects and 
        potential mitigation measures for those two alternatives. The 
        identification of the preferred action and related analysis for 
        the first lease sale under this subtitle shall be completed 
        within 18 months after the date of enactment of this subtitle. 
        The Secretary shall only consider public comments that 
        specifically address the Secretary's preferred action and that 
        are filed within 20 days after publication of an environmental 
        analysis. Notwithstanding any other law, compliance with this 
        paragraph is deemed to satisfy all requirements for the 
        analysis and consideration of the environmental effects of 
        proposed leasing under this subtitle.
    (d) Relationship to State and Local Authority.--Nothing in this 
subtitle shall be considered to expand or limit State and local 
regulatory authority.
    (e) Special Areas.--
            (1) In general.--The Secretary, after consultation with the 
        State of Alaska, the city of Kaktovik, and the North Slope 
        Borough, may designate up to a total of 45,000 acres of the 
        Coastal Plain as a Special Area if the Secretary determines 
        that the Special Area is of such unique character and interest 
        so as to require special management and regulatory protection. 
        The Secretary shall designate as such a Special Area the 
        Sadlerochit Spring area, comprising approximately 4,000 acres.
            (2) Management.--Each such Special Area shall be managed so 
        as to protect and preserve the area's unique and diverse 
        character including its fish, wildlife, and subsistence 
        resource values.
            (3) Exclusion from leasing or surface occupancy.--The 
        Secretary may exclude any Special Area from leasing. If the 
        Secretary leases a Special Area, or any part thereof, for 
        purposes of oil and gas exploration, development, production, 
        and related activities, there shall be no surface occupancy of 
        the lands comprising the Special Area.
            (4) Directional drilling.--Notwithstanding the other 
        provisions of this subsection, the Secretary may lease all or a 
        portion of a Special Area under terms that permit the use of 
        horizontal drilling technology from sites on leases located 
        outside the Special Area.
    (f) Limitation on Closed Areas.--The Secretary's sole authority to 
close lands within the Coastal Plain to oil and gas leasing and to 
exploration, development, and production is that set forth in this 
subtitle.
    (g) Regulations.--
            (1) In general.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out this subtitle, 
        including rules and regulations relating to protection of the 
        fish and wildlife, their habitat, subsistence resources, and 
        environment of the Coastal Plain, by no later than 15 months 
        after the date of enactment of this subtitle.
            (2) Revision of regulations.--The Secretary shall 
        periodically review and, if appropriate, revise the rules and 
        regulations issued under subsection (a) to reflect any 
        significant biological, environmental, or engineering data that 
        come to the Secretary's attention.

SEC. 303. LEASE SALES.

    (a) In General.--Lands may be leased pursuant to this subtitle to 
any person qualified to obtain a lease for deposits of oil and gas 
under the Mineral Leasing Act (30 U.S.C. 181 et seq.).
    (b) Procedures.--The Secretary shall, by regulation, establish 
procedures for--
            (1) receipt and consideration of sealed nominations for any 
        area in the Coastal Plain for inclusion in, or exclusion (as 
        provided in subsection (c)) from, a lease sale;
            (2) the holding of lease sales after such nomination 
        process; and
            (3) public notice of and comment on designation of areas to 
        be included in, or excluded from, a lease sale.
    (c) Lease Sale Bids.--Bidding for leases under this subtitle shall 
be by sealed competitive cash bonus bids.
    (d) Acreage Minimum in First Sale.--In the first lease sale under 
this subtitle, the Secretary shall offer for lease those tracts the 
Secretary considers to have the greatest potential for the discovery of 
hydrocarbons, taking into consideration nominations received pursuant 
to subsection (b)(1), but in no case less than 200,000 acres.
    (e) Timing of Lease Sales.--The Secretary shall--
            (1) conduct the first lease sale under this subtitle within 
        22 months after the date of the enactment of this subtitle; and
            (2) conduct additional sales so long as sufficient interest 
        in development exists to warrant, in the Secretary's judgment, 
        the conduct of such sales.

SEC. 304. GRANT OF LEASES BY THE SECRETARY.

    (a) In General.--The Secretary may grant to the highest responsible 
qualified bidder in a lease sale conducted pursuant to section 303 any 
lands to be leased on the Coastal Plain upon payment by the lessee of 
such bonus as may be accepted by the Secretary.
    (b) Subsequent Transfers.--No lease issued under this subtitle may 
be sold, exchanged, assigned, sublet, or otherwise transferred except 
with the approval of the Secretary. Prior to any such approval the 
Secretary shall consult with, and give due consideration to the views 
of, the Attorney General.

SEC. 305. LEASE TERMS AND CONDITIONS.

    (a) In General.--An oil or gas lease issued pursuant to this 
subtitle shall--
            (1) provide for the payment of a royalty of not less than 
        12\1/2\ percent in amount or value of the production removed or 
        sold from the lease, as determined by the Secretary under the 
        regulations applicable to other Federal oil and gas leases;
            (2) provide that the Secretary may close, on a seasonal 
        basis, portions of the Coastal Plain to exploratory drilling 
        activities as necessary to protect caribou calving areas and 
        other species of fish and wildlife;
            (3) require that the lessee of lands within the Coastal 
        Plain shall be fully responsible and liable for the reclamation 
        of lands within the Coastal Plain and any other Federal lands 
        that are adversely affected in connection with exploration, 
        development, production, or transportation activities conducted 
        under the lease and within the Coastal Plain by the lessee or 
        by any of the subcontractors or agents of the lessee;
            (4) provide that the lessee may not delegate or convey, by 
        contract or otherwise, the reclamation responsibility and 
        liability to another person without the express written 
        approval of the Secretary;
            (5) provide that the standard of reclamation for lands 
        required to be reclaimed under this 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;
            (6) contain terms and conditions relating to protection of 
        fish and wildlife, their habitat, subsistence resources, and 
        the environment as required pursuant to section 302(a)(2);
            (7) provide that the lessee, its agents, and its 
        contractors use best efforts to provide a fair share, as 
        determined by the level of obligation previously agreed to in 
        the 1974 agreement implementing section 29 of the Federal 
        Agreement and Grant of Right of Way for the Operation of the 
        Trans-Alaska Pipeline, of employment and contracting for Alaska 
        Natives and Alaska Native Corporations from throughout the 
        State;
            (8) prohibit the export of oil produced under the lease; 
        and
            (9) contain such other provisions as the Secretary 
        determines necessary to ensure compliance with the provisions 
        of this subtitle and the regulations issued under this 
        subtitle.
    (b) Project Labor Agreements.--The Secretary, as a term and 
condition of each lease under this subtitle and in recognizing the 
Government's proprietary interest in labor stability and in the ability 
of construction labor and management to meet the particular needs and 
conditions of projects to be developed under the leases issued pursuant 
to this subtitle and the special concerns of the parties to such 
leases, shall require that the lessee and its agents and contractors 
negotiate to obtain a project labor agreement for the employment of 
laborers and mechanics on production, maintenance, and construction 
under the lease.

SEC. 306. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

    (a) No Significant Adverse Effect Standard To Govern Authorized 
Coastal Plain Activities.--The Secretary shall, consistent with the 
requirements of section 302, administer the provisions of this subtitle 
through regulations, lease terms, conditions, restrictions, 
prohibitions, stipulations, and other provisions that--
            (1) ensure the oil and gas exploration, development, and 
        production activities on the Coastal Plain will result in no 
        significant adverse effect on fish and wildlife, their habitat, 
        and the environment;
            (2) require the application of the best commercially 
        available technology for oil and gas exploration, development, 
        and production on all new exploration, development, and 
        production operations; and
            (3) ensure that the maximum amount of surface acreage 
        covered by production and support facilities, including 
        airstrips and any areas covered by gravel berms or piers for 
        support of pipelines, does not exceed 2,000 acres on the 
        Coastal Plain.
    (b) Site-Specific Assessment and Mitigation.--The Secretary shall 
also require, with respect to any proposed drilling and related 
activities, that--
            (1) a site-specific analysis be made of the probable 
        effects, if any, that the drilling or related activities will 
        have on fish and wildlife, their habitat, subsistence 
        resources, and the environment;
            (2) a plan be implemented to avoid, minimize, and mitigate 
        (in that order and to the extent practicable) any significant 
        adverse effect identified under paragraph (1); and
            (3) the development of the plan shall occur after 
        consultation with the agency or agencies having jurisdiction 
        over matters mitigated by the plan.
    (c) Regulations To Protect Coastal Plain Fish and Wildlife 
Resources, Subsistence Users, and the Environment.--Before implementing 
the leasing program authorized by this subtitle, the Secretary shall 
prepare and promulgate regulations, lease terms, conditions, 
restrictions, prohibitions, stipulations, and other measures designed 
to ensure that the activities undertaken on the Coastal Plain under 
this subtitle are conducted in a manner consistent with the purposes 
and environmental requirements of this subtitle.
    (d) Compliance With Federal and State Environmental Laws and Other 
Requirements.--The proposed regulations, lease terms, conditions, 
restrictions, prohibitions, and stipulations for the leasing program 
under this subtitle shall require compliance with all applicable 
provisions of Federal and State environmental law, and shall also 
require the following:
            (1) Standards at least as effective as the safety and 
        environmental mitigation measures set forth in items 1 through 
        29 at pages 167 through 169 of the ``Final Legislative 
        Environmental Impact Statement'' (April 1987) on the Coastal 
        Plain.
            (2) Seasonal limitations on exploration, development, and 
        related activities, where necessary, to avoid significant 
        adverse effects during periods of concentrated fish and 
        wildlife breeding, denning, nesting, spawning, and migration.
            (3) That exploration activities, except for surface 
        geological studies, be limited to the period between 
        approximately November 1 and May 1 each year and that 
        exploration activities shall be supported, if necessary, by ice 
        roads, winter trails with adequate snow cover, ice pads, ice 
        airstrips, and air transport methods, except that such 
        exploration activities may occur at other times if the 
        Secretary finds that such exploration will have no significant 
        adverse effect on the fish and wildlife, their habitat, and the 
        environment of the Coastal Plain.
            (4) Design safety and construction standards for all 
        pipelines and any access and service roads, that--
                    (A) minimize, to the maximum extent possible, 
                adverse effects upon the passage of migratory species 
                such as caribou; and
                    (B) minimize adverse effects upon the flow of 
                surface water by requiring the use of culverts, 
                bridges, and other structural devices.
            (5) Prohibitions on general public access and use on all 
        pipeline access and service roads.
            (6) Stringent reclamation and rehabilitation requirements, 
        consistent with the standards set forth in this 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.
            (7) Appropriate prohibitions or restrictions on access by 
        all modes of transportation.
            (8) Appropriate prohibitions or restrictions on sand and 
        gravel extraction.
            (9) Consolidation of facility siting.
            (10) Appropriate prohibitions or restrictions on use of 
        explosives.
            (11) Avoidance, to the extent practicable, of springs, 
        streams, and river system; the protection of natural surface 
        drainage patterns, wetlands, and riparian habitats; and the 
        regulation of methods or techniques for developing or 
        transporting adequate supplies of water for exploratory 
        drilling.
            (12) Avoidance or minimization of air traffic-related 
        disturbance to fish and wildlife.
            (13) Treatment and disposal of hazardous and toxic wastes, 
        solid wastes, reserve pit fluids, drilling muds and cuttings, 
        and domestic wastewater, including an annual waste management 
        report, a hazardous materials tracking system, and a 
        prohibition on chlorinated solvents, in accordance with 
        applicable Federal and State environmental law.
            (14) Fuel storage and oil spill contingency planning.
            (15) Research, monitoring, and reporting requirements.
            (16) Field crew environmental briefings.
            (17) Avoidance of significant adverse effects upon 
        subsistence hunting, fishing, and trapping by subsistence 
        users.
            (18) Compliance with applicable air and water quality 
        standards.
            (19) Appropriate seasonal and safety zone designations 
        around well sites, within which subsistence hunting and 
        trapping shall be limited.
            (20) Reasonable stipulations for protection of cultural and 
        archaeological resources.
            (21) All other protective environmental stipulations, 
        restrictions, terms, and conditions deemed necessary by the 
        Secretary.
    (e) Considerations.--In preparing and promulgating regulations, 
lease terms, conditions, restrictions, prohibitions, and stipulations 
under this section, the Secretary shall consider the following:
            (1) The stipulations and conditions that govern the 
        National Petroleum Reserve-Alaska leasing program, as set forth 
        in the 1999 Northeast National Petroleum Reserve-Alaska Final 
        Integrated Activity Plan/Environmental Impact Statement.
            (2) The environmental protection standards that governed 
        the initial Coastal Plain seismic exploration program under 
        parts 37.31 to 37.33 of title 50, Code of Federal Regulations.
            (3) The land use stipulations for exploratory drilling on 
        the KIC-ASRC private lands that are set forth in appendix 2 of 
        the August 9, 1983, agreement between Arctic Slope Regional 
        Corporation and the United States.
    (f) Facility Consolidation Planning.--
            (1) In general.--The Secretary shall, after providing for 
        public notice and comment, prepare and update periodically a 
        plan to govern, guide, and direct the siting and construction 
        of facilities for the exploration, development, production, and 
        transportation of Coastal Plain oil and gas resources.
            (2) Objectives.--The plan shall have the following 
        objectives:
                    (A) Avoiding unnecessary duplication of facilities 
                and activities.
                    (B) Encouraging consolidation of common facilities 
                and activities.
                    (C) Locating or confining facilities and activities 
                to areas that will minimize impact on fish and 
                wildlife, their habitat, and the environment.
                    (D) Utilizing existing facilities wherever 
                practicable.
                    (E) Enhancing compatibility between wildlife values 
                and development activities.
    (g) Access to Public Lands.--The Secretary shall--
            (1) manage public lands in the Coastal Plain subject to 
        subsections (a) and (b) of section 811 of the Alaska National 
        Interest Lands Conservation Act (16 U.S.C. 3121); and
            (2) ensure that local residents shall have reasonable 
        access to public lands in the Coastal Plain for traditional 
        uses.

SEC. 307. EXPEDITED JUDICIAL REVIEW.

    (a) Filing of Complaint.--
            (1) Deadline.--Subject to paragraph (2), any complaint 
        seeking judicial review of any provision of this subtitle or 
        any action of the Secretary under this subtitle shall be 
        filed--
                    (A) except as provided in subparagraph (B), within 
                the 90-day period beginning on the date of the action 
                being challenged; or
                    (B) in the case of a complaint based solely on 
                grounds arising after such period, within 90 days after 
                the complainant knew or reasonably should have known of 
                the grounds for the complaint.
            (2) Venue.--Any complaint seeking judicial review of any 
        provision of this subtitle or any action of the Secretary under 
        this subtitle may be filed only in the United States Court of 
        Appeals for the District of Columbia.
            (3) Limitation on scope of certain review.--Judicial review 
        of a Secretarial decision to conduct a lease sale under this 
        subtitle, including the environmental analysis thereof, shall 
        be limited to whether the Secretary has complied with the terms 
        of this subtitle and shall be based upon the administrative 
        record of that decision. The Secretary's identification of a 
        preferred course of action to enable leasing to proceed and the 
        Secretary's analysis of environmental effects under this 
        subtitle shall be presumed to be correct unless shown otherwise 
        by clear and convincing evidence to the contrary.
    (b) Limitation on Other Review.--Actions of the Secretary with 
respect to which review could have been obtained under this section 
shall not be subject to judicial review in any civil or criminal 
proceeding for enforcement.

SEC. 308. FEDERAL AND STATE DISTRIBUTION OF REVENUES.

    (a) In General.--Notwithstanding any other provision of law, of the 
amount of adjusted bonus, rental, and royalty revenues from Federal oil 
and gas leasing and operations authorized under this subtitle--
            (1) 50 percent shall be paid to the State of Alaska; and
            (2) except as provided in section 311(d), the balance shall 
        be deposited into the Treasury as miscellaneous receipts.
    (b) Payments to Alaska.--Payments to the State of Alaska under this 
section shall be made semiannually.

SEC. 309. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.

    (a) In General.--The Secretary shall issue rights-of-way and 
easements across the Coastal Plain for the transportation of oil and 
gas--
            (1) except as provided in paragraph (2), under section 28 
        of the Mineral Leasing Act (30 U.S.C. 185), without regard to 
        title XI of the Alaska National Interest Lands Conservation Act 
        (30 U.S.C. 3161 et seq.); and
            (2) under title XI of the Alaska National Interest Lands 
        Conservation Act (30 U.S.C. 3161 et seq.), for access 
        authorized by sections 1110 and 1111 of that Act (16 U.S.C. 
        3170 and 3171).
    (b) Terms and Conditions.--The Secretary shall include in any 
right-of-way or easement issued under subsection (a) such terms and 
conditions as may be necessary to ensure that transportation of oil and 
gas does not result in a significant adverse effect on the fish and 
wildlife, subsistence resources, their habitat, and the environment of 
the Coastal Plain, including requirements that facilities be sited or 
designed so as to avoid unnecessary duplication of roads and pipelines.
    (c) Regulations.--The Secretary shall include in regulations under 
section 302(g) provisions granting rights-of-way and easements 
described in subsection (a) of this section.

SEC. 310. CONVEYANCE.

    In order to maximize Federal revenues by removing clouds on title 
to lands and clarifying land ownership patterns within the Coastal 
Plain, the Secretary, notwithstanding the provisions of section 
1302(h)(2) of the Alaska National Interest Lands Conservation Act (16 
U.S.C. 3192(h)(2)), shall convey--
            (1) to the Kaktovik Inupiat Corporation the surface estate 
        of the lands described in paragraph 1 of Public Land Order 
        6959, to the extent necessary to fulfill the Corporation's 
        entitlement under sections 12 and 14 of the Alaska Native 
        Claims Settlement Act (43 U.S.C. 1611 and 1613) in accordance 
        with the terms and conditions of the Agreement between the 
        Department of the Interior, the United States Fish and Wildlife 
        Service, the Bureau of Land Management, and the Kaktovik 
        Inupiat Corporation effective January 22, 1993; and
            (2) to the Arctic Slope Regional Corporation the remaining 
        subsurface estate to which it is entitled pursuant to the 
        August 9, 1983, agreement between the Arctic Slope Regional 
        Corporation and the United States of America.

SEC. 311. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.

    (a) Financial Assistance Authorized.--
            (1) In general.--The Secretary may use amounts available 
        from the Coastal Plain Local Government Impact Aid Assistance 
        Fund established by subsection (d) to provide timely financial 
        assistance to entities that are eligible under paragraph (2) 
        and that are directly impacted by the exploration for or 
        production of oil and gas on the Coastal Plain under this 
        subtitle.
            (2) Eligible entities.--The North Slope Borough, the City 
        of Kaktovik, and any other borough, municipal subdivision, 
        village, or other community in the State of Alaska that is 
        directly impacted by exploration for, or the production of, oil 
        or gas on the Coastal Plain under this subtitle, as determined 
        by the Secretary, shall be eligible for financial assistance 
        under this section.
    (b) Use of Assistance.--Financial assistance under this section may 
be used only for--
            (1) planning for mitigation of the potential effects of oil 
        and gas exploration and development on environmental, social, 
        cultural, recreational, and subsistence values;
            (2) implementing mitigation plans and maintaining 
        mitigation projects;
            (3) developing, carrying out, and maintaining projects and 
        programs that provide new or expanded public facilities and 
        services to address needs and problems associated with such 
        effects, including fire-fighting, police, water, waste 
        treatment, medivac, and medical services; and
            (4) establishment of a coordination office, by the North 
        Slope Borough, in the City of Kaktovik, which shall--
                    (A) coordinate with and advise developers on local 
                conditions, impact, and history of the areas utilized 
                for development; and
                    (B) provide to the Committee on Resources of the 
                House of Representatives and the Committee on Energy 
                and Natural Resources of the Senate an annual report on 
                the status of coordination between developers and the 
                communities affected by development.
    (c) Application.--
            (1) In general.--Any community that is eligible for 
        assistance under this section may submit an application for 
        such assistance to the Secretary, in such form and under such 
        procedures as the Secretary may prescribe by regulation.
            (2) North slope borough communities.--A community located 
        in the North Slope Borough may apply for assistance under this 
        section either directly to the Secretary or through the North 
        Slope Borough.
            (3) Application assistance.--The Secretary shall work 
        closely with and assist the North Slope Borough and other 
        communities eligible for assistance under this section in 
        developing and submitting applications for assistance under 
        this section.
    (d) Establishment of Fund.--
            (1) In general.--There is established in the Treasury the 
        Coastal Plain Local Government Impact Aid Assistance Fund.
            (2) Use.--Amounts in the fund may be used only for 
        providing financial assistance under this section.
            (3) Deposits.--Subject to paragraph (4), there shall be 
        deposited into the fund amounts received by the United States 
        as revenues derived from rents, bonuses, and royalties from 
        Federal leases and lease sales authorized under this subtitle.
            (4) Limitation on deposits.--The total amount in the fund 
        may not exceed $11,000,000.
            (5) Investment of balances.--The Secretary of the Treasury 
        shall invest amounts in the fund in interest bearing government 
        securities.
    (e) Authorization of Appropriations.--To provide financial 
assistance under this section there is authorized to be appropriated to 
the Secretary from the Coastal Plain Local Government Impact Aid 
Assistance Fund $5,000,000 for each fiscal year.

             Subtitle B--Off Shore Drilling for Oil and Gas

SEC. 321. TERMINATION OF PROHIBITIONS ON EXPENDITURES FOR, AND 
              WITHDRAWALS FROM, OFFSHORE LEASING.

    (a) Prohibitions on Expenditures.--All provisions of Federal law 
that prohibit the expenditure of appropriated funds to conduct oil or 
natural gas leasing and preleasing activities for any area of the Outer 
Continental Shelf shall have no force or effect with respect to such 
activities.
    (b) Revocation Withdrawals.--All withdrawals of Federal submerged 
lands of the Outer Continental Shelf from leasing, including 
withdrawals by the President under the authority of section 12(a) of 
the Outer Continental Shelf Lands Act (43 U.S.C. 1341(a)), are hereby 
revoked and are no longer in effect with respect to the leasing of 
areas for exploration for, and development and production of, oil and 
natural gas.

SEC. 322. OUTER CONTINENTAL SHELF LEASING PROGRAM.

    The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is 
amended by inserting after section 9 the following:

``SEC. 10. MORATORIA AREA AND STATE APPROVAL REQUIREMENT WITH RESPECT 
              TO OIL AND NATURAL GAS LEASING.

    ``(a) Buffer Zone.--The Secretary may not grant any oil or natural 
gas lease for any area of the outer Continental Shelf that is located 
within 25 miles of the coastline of a State.
    ``(b) State Approval Requirement.--
            ``(1) In general.--The Secretary may not issue any lease 
        authorizing exploration for, or development of, natural gas in 
        any area of the outer Continental Shelf that is located within 
        50 miles of the coastline of a State unless the State has 
        enacted a law approving of the issuance of such leases by the 
        Secretary.
            ``(2) State approval permanent.--Repeal of such a law by a 
        State shall have no effect for purposes of paragraph (1).
    ``(c) State Disapproval Authority.--
            ``(1) In general.--The Secretary may not issue any lease 
        authorizing exploration for, or development of, oil or natural 
        gas in any area of the outer Continental Shelf that is located 
        more than 50 miles and less than 100 miles from the coastline 
        of a State if the State has enacted a law disapproving of the 
        issuance of such leases by the Secretary.
            ``(2) Requirements for state law.--A law enacted by a State 
        for purposes of paragraph (1)--
                    ``(A) shall have no force or effect for purposes of 
                paragraph (1) unless first enacted by the State within 
                the one-year period beginning on the date of the 
                enactment of the National Environment and Energy 
                Development Act; and
                    ``(B) shall have no force or effect for purposes of 
                paragraph (1) after the end of the 2-year period 
                beginning on the date it first takes effect, unless the 
                State, in the 2-year period preceding the application 
                of the law for purposes of paragraph (1), enacted 
                legislation extending the effectiveness of the law.''.

SEC. 323. SHARING OF REVENUES.

    (a) In General.--Section 8(g) of the Outer Continental Shelf Lands 
Act (43 U.S.C. 1337(g)) is amended--
            (1) in paragraph (2) by striking ``Notwithstanding'' and 
        inserting ``Except as provided in paragraph (6), and 
        notwithstanding'';
            (2) by redesignating paragraphs (6) and (7) as paragraphs 
        (8) and (9); and
            (3) by inserting after paragraph (5) the following:
            ``(6) Bonus bids and royalties under qualified oil and gas 
        leases.--
                    ``(A) New oil and gas leases.--Of amounts received 
                by the United States as bonus bids and royalties under 
                any qualified oil or gas lease on submerged lands that 
                are located within the seaward boundaries of a State 
                established under section 4(a)(2)(A)--
                            ``(i) 37.5 percent shall be paid to the 
                        States that are producing States with respect 
                        to those submerged lands; and
                            ``(ii) the remainder shall be transferred 
                        to the American-Made Energy Trust Fund 
                        established by section 9511 of the Internal 
                        Revenue Code of 1986.
                    ``(B) Leased tract that lies partially within the 
                seaward boundaries of a state.--In the case of a leased 
                tract that lies partially within the seaward boundaries 
                of a State, the amounts of bonus bids and royalties 
                from such tract that are subject to subparagraph (A) 
                with respect to such State shall be a percentage of the 
                total amounts of bonus bids and royalties from such 
                tract that is equivalent to the total percentage of 
                surface acreage of the tract that lies within such 
                seaward boundaries.
                    ``(C) Use of payments to states.--Amounts paid to a 
                State under subparagraph (A)(ii) shall be used by the 
                State for one or more of the following:
                            ``(i) Education.
                            ``(ii) Transportation.
                            ``(iii) Reducing taxes.
                            ``(iv) Coastal and environmental 
                        restoration.
                            ``(v) Energy infrastructure and projects.
                            ``(vi) State seismic monitoring programs.
                            ``(vii) Alternative energy development.
                            ``(viii) Energy efficiency and 
                        conservation.
                            ``(ix) Hurricane and natural disaster 
                        insurance programs.
                            ``(x) Any other purpose determined by State 
                        law.
                    ``(D) Definitions.--In this paragraph:
                            ``(i) Adjacent state.--The term `adjacent 
                        State' means, with respect to any program, 
                        plan, lease sale, leased tract or other 
                        activity, proposed, conducted, or approved 
                        pursuant to the provisions of this Act, any 
                        State the laws of which are declared, pursuant 
                        to section 4(a)(2), to be the law of the United 
                        States for the portion of the outer Continental 
                        Shelf on which such program, plan, lease sale, 
                        leased tract, or activity appertains or is, or 
                        is proposed to be, conducted.
                            ``(ii) Adjacent zone.--The term `adjacent 
                        zone' means, with respect to any program, plan, 
                        lease sale, leased tract, or other activity, 
                        proposed, conducted, or approved pursuant to 
                        the provisions of this Act, the portion of the 
                        outer Continental Shelf for which the laws of a 
                        particular adjacent State are declared, 
                        pursuant to section 4(a)(2), to be the law of 
                        the United States.
                            ``(iii) Producing state.--The term 
                        `producing State' means an Adjacent State 
                        having an adjacent zone containing leased 
                        tracts from which are derived bonus bids and 
                        royalties under a lease under this Act.
                            ``(iv) State.--The term `State' includes 
                        Puerto Rico and the other Territories of the 
                        United States.
                            ``(v) Qualified gas lease.--The term 
                        `qualified oil or gas lease' means a lease 
                        under this Act granted after the date of the 
                        enactment of the National Environment and 
                        Energy Development Act that authorizes 
                        development and production of oil or natural 
                        gas and associated condensate.
                    ``(E) Application.--This paragraph shall apply to 
                bonus bids and royalties received by the United States 
                after September 30, 2008.
            ``(7) Maintenance of effort by states.--The Secretary of 
        the Interior shall ensure that financial assistance provided to 
        a State for any purpose with amounts made available under this 
        subsection supplement, and do not replace, the amounts expended 
        by the State for that purpose before the date of the enactment 
        of this paragraph.''.
    (b) Establishment of State Seaward Boundaries.--Section 4(a)(2)(A) 
of the Outer Continental Shelf Lands Act (43 U.S.C. 1333(a)(2)(A)) is 
amended in the first sentence by striking ``, and the President'' and 
all that follows through the end of the sentence and inserting the 
following: ``. Such extended lines are deemed to be as indicated on the 
maps for each Outer Continental Shelf region entitled `Alaska OCS 
Region State Adjacent Zone and OCS Planning Areas', `Pacific OCS Region 
State Adjacent Zones and OCS Planning Areas', `Gulf of Mexico OCS 
Region State Adjacent Zones and OCS Planning Areas', and `Atlantic OCS 
Region State Adjacent Zones and OCS Planning Areas', all of which are 
dated September 2005 and on file in the Office of the Director, 
Minerals Management Service. The preceding sentence shall not apply 
with respect to the treatment under section 105 of the Gulf of Mexico 
Energy Security Act of 2006 (title I of division C of Public Law 109-
432) of qualified outer Continental Shelf revenues deposited and 
disbursed under subsection (a)(2) of that section.''.

Subtitle C--Prohibition on Exportation of Alaskan North Slope Crude Oil

SEC. 331. PROHIBITION ON EXPORTATION OF ALASKAN NORTH SLOPE CRUDE OIL.

    Effective 90 days after the date of the enactment of this Act--
            (1) no domestically produced crude oil transported by 
        pipeline over right-of-way granted pursuant to section 203 of 
        the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1652) 
        may be exported from the United States, or any commonwealth, 
        territory, or possession of the United States; and
            (2) subsections (s) and (u) of section 28 of the Mineral 
        Leasing Act of 1920 (30 U.S.C. 185(s) and (u)), and section 
        7(d) of the Export Administration Act of 1979 (50 U.S.C. App. 
        2406(d)), are repealed.
                                 <all>