[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6384 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6384

      To provide a comprehensive plan for greater American energy 
                             independence.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 26, 2008

Mr. Bishop of Utah (for himself, Mr. Boehner, Mr. Sali, Mr. Cannon, Mr. 
 Heller of Nevada, Mr. Herger, Mrs. McMorris Rodgers, Mr. Lamborn, Mr. 
     Doolittle, Mr. Renzi, Mrs. Musgrave, Mr. Young of Alaska, Mr. 
Alexander, Mr. Rehberg, Mrs. Cubin, Mr. Franks of Arizona, Mr. Simpson, 
Mr. Peterson of Pennsylvania, Mr. Pearce, Mr. Tancredo, Mr. Upton, Mrs. 
  Blackburn, Mr. Walden of Oregon, Mr. Shadegg, Mr. Walberg, and Mrs. 
   Myrick) introduced the following bill; which was referred to the 
 Committee on Natural Resources, and in addition to the Committees on 
 the Judiciary, Energy and Commerce, Science and Technology, Ways and 
Means, Agriculture, Education and Labor, Armed Services, Transportation 
 and Infrastructure, and Oversight and Government Reform, 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 provide a comprehensive plan for greater American energy 
                             independence.

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

SECTION 1. SHORT TITLE.

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

Sec. 1. Short title.
Sec. 2. Findings.
                    TITLE I--OUTER CONTINENTAL SHELF

Sec. 101. Short title.
Sec. 102. Policy.
Sec. 103. Definitions under the Submerged Lands Act.
Sec. 104. Seaward boundaries of States.
Sec. 105. Exceptions from confirmation and establishment of States 
                            title, power, and rights.
Sec. 106. Definitions under the Outer Continental Shelf Lands Act.
Sec. 107. Determination of adjacent zones and planning areas.
Sec. 108. Administration of leasing.
Sec. 109. Grant of leases by Secretary.
Sec. 110. Disposition of receipts.
Sec. 111. Reservation of lands and rights.
Sec. 112. Outer Continental Shelf leasing program.
Sec. 113. Coordination with adjacent States.
Sec. 114. Environmental studies.
Sec. 115. Federal Energy Natural Resources Enhancement Act of 2008.
Sec. 116. Termination of effect of laws prohibiting the spending of 
                            Appropriated funds for certain purposes.
Sec. 117. Outer continental shelf incompatible use.
Sec. 118. Repurchase of certain leases.
Sec. 119. Offsite environmental mitigation.
Sec. 120. Minerals management service.
Sec. 121. Authority to use decommissioned offshore oil and gas 
                            platforms and other facilities for 
                            artificial reef, scientific research, or 
                            other uses.
Sec. 122. Repeal of requirement to conduct comprehensive inventory of 
                            OCS oil and natural gas resources.
Sec. 123. Onshore and offshore mineral lease fees.
Sec. 124. OCS regional headquarters.
Sec. 125. Leases for areas located within 100 miles of California or 
                            Florida.
Sec. 126. Coastal impact assistance.
Sec. 127. Sense of the Congress to buy and build American.
Sec. 128. Repeal of the Gulf of Mexico Energy Security Act of 2006.
Sec. 129. Removal of additional fee for new applications for permits to 
                            drill.
Sec. 130. Credit for producing fuel from nonconventional sources to 
                            apply to gas produced onshore from 
                            formations more than 15,000 feet deep.
Sec. 131. Tax credit for carbon dioxide captured from industrial 
                            sources and used in enhanced oil and 
                            natural gas recovery.
   TITLE II--OIL AND GAS LEASING PROGRAM FOR COASTAL PLAIN OF ALASKA

Sec. 201. Short title.
Sec. 202. Definitions.
Sec. 203. Leasing program for lands within the Coastal Plain.
Sec. 204. Lease sales.
Sec. 205. Grant of leases by the Secretary.
Sec. 206. Lease terms and conditions.
Sec. 207. Coastal plain environmental protection.
Sec. 208. Expedited judicial review.
Sec. 209. Federal and State distribution of revenues.
Sec. 210. Rights-of-way across the coastal plain.
Sec. 211. Conveyance.
Sec. 212. Local government impact aid and community service assistance.
                   TITLE III--OIL SHALE AND TAR SANDS

Sec. 301. Short title.
Sec. 302. Repeal of limitation on use of funds for regulations 
                            regarding a commercial leasing program for 
                            oil shale resources on public lands.
Sec. 303. Permanent funding for PILT and refuge revenue sharing.
Sec. 304. Reauthorization of the Secure Rural Schools and Community 
                            Self-Determination Act of 2000.
Sec. 305. Oil shale and tar sands amendments.
Sec. 306. Repeal.
                             TITLE IV--COAL

Sec. 401. Short title.
Sec. 402. Standby loans for qualifying coal-to-liquids projects.
Sec. 403. Government auction of long term put option contracts on coal-
                            to-liquid fuel produced by qualified coal-
                            to-liquid facilities.
                            TITLE V--NUCLEAR

Sec. 501. Use of funds for recycling.
Sec. 502. Rulemaking for licensing of spent nuclear fuel recycling 
                            facilities.
Sec. 503. Nuclear waste fund budget status.
Sec. 504. Waste Confidence.
Sec. 505. ASME Nuclear Certification credit.
                    TITLE VI--CLEAN RENEWABLE ENERGY

Sec. 601. Trust fund.
Sec. 602. Developing solar energy on Federal lands.
     TITLE VII--PROMOTE GREATER ENERGY EFFICIENCY AND CONSERVATION

Sec. 701. Increase and extension of energy efficient commercial 
                            buildings deduction.
Sec. 702. Permanent extension of the credit for nonbusiness energy 
                            property, the credit for gas produced from 
                            biomass and for synthetic fuels produced 
                            from coal, and the credit for energy 
                            efficient appliances.
Sec. 703. Extension and clarification of new energy efficient home 
                            credit.
Sec. 704. Extension and modification of deduction for energy efficient 
                            commercial buildings.
Sec. 705. Deduction for energy efficient low-rise buildings.
    TITLE VIII--INCREASING AMERICA'S GASOLINE REFINING CAPABILITIES

Sec. 801. Definitions.
Sec. 802. State assistance.
Sec. 803. Refinery process coordination and procedures.
Sec. 804. Designation of closed military bases.
Sec. 805. Savings clause.
Sec. 806. Refinery revitalization repeal.
Sec. 807. New source review under the Clean Air Act.
Sec. 808. Designation of new refining capacity on brownfield sites.
Sec. 809. Year extension of election to expense certain refineries.
       TITLE IX--COMMON SENSE REGULATORY RELIEF AND POLICY REFORM

Sec. 901. Extension and modification of renewable energy production tax 
                            credit.
Sec. 902. Extension and modification of solar energy and fuel cell 
                            investment tax credit.
Sec. 903. Repeal of requirement to deduct from an amount payable to 
                            each state.
Sec. 904. Production credit for electricity produced from conventional 
                            hydropower projects.
Sec. 905. Definition of renewable biomass.
Sec. 906. NEPA judicial review.
    TITLE X--TAX-EXEMPT FINANCING OF CERTAIN ELECTRIC TRANSMISSION 
                               FACILITIES

Sec. 1001. Tax-exempt financing of certain electric transmission 
                            facilities not subject to private business 
                            use test.
TITLE XI--RESTORE OUR DOMESTIC ENERGY WORKFORCE SCIENCE AND TECHNOLOGY 
                               EDUCATION

Sec. 1101. Short title.
Sec. 1102. Policy.
Sec. 1103. Maintaining science and technology education programs.
Sec. 1104. Funds for scholarships and fellowships.
Sec. 1105. Use of funds by institutions.
Sec. 1106. Establishment of a national center.
Sec. 1107. Stakeholder Committee on Science and Technology Education.
Sec. 1108. Career technical and community college education.
Sec. 1109. Nuclear science and engineering scholarships.
Sec. 1110. Nuclear workforce development.
Sec. 1111. Authorization of appropriations.
         TITLE XII--TAPPING AMERICA'S INGENUITY AND CREATIVITY

Sec. 1201. Definitions.
Sec. 1202. Statement of policy.
Sec. 1203. Prize authority.
Sec. 1204. Eligibility.
Sec. 1205. Intellectual property.
Sec. 1206. Waiver of liability.
Sec. 1207. Authorization of appropriations.
Sec. 1208. Next generation automobile prize program.
Sec. 1209. Advanced battery manufacturing incentive program.

SEC. 2. FINDINGS.

    Congress finds as follows:
            (1) America has a tremendous abundance of virtually all 
        energy resources.
            (2) America has 21st century technologies that can harvest 
        these resources with very little environmental impact.
            (3) America can greatly strengthen our national security by 
        reducing our dependence on foreign energy supplies, 
        particularly from hostile nations.
            (4) America needs to develop more of all of its resources 
        in order to achieve true energy independence.

                    TITLE I--OUTER CONTINENTAL SHELF

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Deep Ocean Energy Resources Act of 
2008''.

SEC. 102. POLICY.

    It is the policy of the United States that--
            (1) the United States is blessed with abundant energy 
        resources on the outer Continental Shelf and has developed a 
        comprehensive framework of environmental laws and regulations 
        and fostered the development of state-of-the-art technology 
        that allows for the responsible development of these resources 
        for the benefit of its citizenry;
            (2) adjacent States are required by the circumstances to 
        commit significant resources in support of exploration, 
        development, and production activities for mineral resources on 
        the outer Continental Shelf, and it is fair and proper for a 
        portion of the receipts from such activities to be shared with 
        Adjacent States and their local coastal governments;
            (3) the existing laws governing the leasing and production 
        of the mineral resources of the outer Continental Shelf have 
        reduced the production of mineral resources, have preempted 
        Adjacent States from being sufficiently involved in the 
        decisions regarding the allowance of mineral resource 
        development, and have been harmful to the national interest;
            (4) the national interest is served by granting the 
        Adjacent States more options related to whether or not mineral 
        leasing should occur in the outer Continental Shelf within 
        their Adjacent Zones;
            (5) it is not reasonably foreseeable that exploration of a 
        leased tract located more than 25 miles seaward of the 
        coastline, development and production of a natural gas 
        discovery located more than 25 miles seaward of the coastline, 
        or development and production of an oil discovery located more 
        than 50 miles seaward of the coastline will adversely affect 
        resources near the coastline;
            (6) transportation of oil from a leased tract might 
        reasonably be foreseen, under limited circumstances, to have 
        the potential to adversely affect resources near the coastline 
        if the oil is within 50 miles of the coastline, but such 
        potential to adversely affect such resources is likely no 
        greater, and probably less, than the potential impacts from 
        tanker transportation because tanker spills usually involve 
        large releases of oil over a brief period of time; and
            (7) among other bodies of inland waters, the Great Lakes, 
        Long Island Sound, Delaware Bay, Chesapeake Bay, Albemarle 
        Sound, San Francisco Bay, and Puget Sound are not part of the 
        outer Continental Shelf, and are not subject to leasing by the 
        Federal Government for the exploration, development, and 
        production of any mineral resources that might lie beneath 
        them.

SEC. 103. DEFINITIONS UNDER THE SUBMERGED LANDS ACT.

    Section 2 of the Submerged Lands Act (43 U.S.C. 1301) is amended--
            (1) in subparagraph (2) of paragraph (a) by striking all 
        after ``seaward to a line'' and inserting ``twelve nautical 
        miles distant from the coast line of such State;'';
            (2) by striking out paragraph (b) and redesignating the 
        subsequent paragraphs in order as paragraphs (b) through (g);
            (3) by striking the period at the end of paragraph (g) (as 
        so redesignated) and inserting ``; and'';
            (4) by adding the following:
    ``(i) The term `Secretary' means the Secretary of the Interior.''; 
and
            (5) by defining ``State'' as it is defined in section 2(r) 
        of the Outer Continental Shelf Lands Act (43 U.S.C. 1331(r)).

SEC. 104. SEAWARD BOUNDARIES OF STATES.

    Section 4 of the Submerged Lands Act (43 U.S.C. 1312) is amended--
            (1) in the first sentence by striking ``original'', and in 
        the same sentence by striking ``three geographical'' and 
        inserting ``twelve nautical''; and
            (2) by striking all after the first sentence and inserting 
        the following: ``Extension and delineation of lateral offshore 
        State boundaries under the provisions of this Act shall follow 
        the lines used to determine the Adjacent Zones of coastal 
        States under the Outer Continental Shelf Lands Act to the 
        extent such lines extend twelve nautical miles for the nearest 
        coastline.''.

SEC. 105. EXCEPTIONS FROM CONFIRMATION AND ESTABLISHMENT OF STATES 
              TITLE, POWER, AND RIGHTS.

    Section 5 of the Submerged Lands Act (43 U.S.C. 1313) is amended 
by--
            (1) by redesignating paragraphs (a) through (c) in order as 
        paragraphs (1) through (3);
            (2) by inserting ``(a)'' before ``There is excepted''; and
            (3) by inserting at the end the following:
    ``(b) Exception of Oil and Gas Mineral Rights.--There is excepted 
from the operation of sections 3 and 4 all of the oil and gas mineral 
rights for lands beneath the navigable waters that are located within 
the expanded offshore State seaward boundaries established under this 
Act. These oil and gas mineral rights shall remain Federal property and 
shall be considered to be part of the Federal outer Continental Shelf 
for purposes of the Outer Continental Shelf Lands Act (43 U.S.C. 1331 
et seq.) and subject to leasing under the authority of that Act and to 
laws applicable to the leasing of the oil and gas resources of the 
Federal outer Continental Shelf. All existing Federal oil and gas 
leases within the expanded offshore State seaward boundaries shall 
continue unchanged by the provisions of this Act, except as otherwise 
provided herein. However, a State may exercise all of its sovereign 
powers of taxation within the entire extent of its expanded offshore 
State boundaries.''.

SEC. 106. DEFINITIONS UNDER THE OUTER CONTINENTAL SHELF LANDS ACT.

    Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331) 
is amended--
            (1) by amending paragraph (f) to read as follows:
    ``(f) The term `affected State' means the `Adjacent State'.'';
            (2) by striking the semicolon at the end of each of 
        paragraphs (a) through (o) and inserting a period;
            (3) by striking ``; and'' at the end of paragraph (p) and 
        inserting a period;
            (4) by adding at the end the following:
    ``(r) The term `Adjacent State' means, with respect to any program, 
plan, lease sale, leased tract or other activity, proposed, conducted, 
or approved pursuant to the provisions of this Act, any State the laws 
of which are declared, pursuant to section 4(a)(2), to be the law of 
the United States for the portion of the outer Continental Shelf on 
which such program, plan, lease sale, leased tract or activity 
appertains or is, or is proposed to be, conducted. For purposes of this 
paragraph, the term `State' includes the Commonwealth of Puerto Rico, 
the Commonwealth of the Northern Mariana Islands, the Virgin Islands, 
American Samoa, Guam, and the other Territories of the United States.
    ``(s) The term `Adjacent Zone' means, with respect to any program, 
plan, lease sale, leased tract, or other activity, proposed, conducted, 
or approved pursuant to the provisions of this Act, the portion of the 
outer Continental Shelf for which the laws of a particular Adjacent 
State are declared, pursuant to section 4(a)(2), to be the law of the 
United States.
    ``(t) The term `miles' means statute miles.
    ``(u) The term `coastline' has the same meaning as the term `coast 
line' as defined in section 2(c) of the Submerged Lands Act (43 U.S.C. 
1301(c)).
    ``(v) The term `Neighboring State' means a coastal State having a 
common boundary at the coastline with the Adjacent State.''; and
            (5) in paragraph (a), by inserting after ``control'' the 
        following: ``or lying within the United States exclusive 
        economic zone adjacent to the Territories of the United 
        States''.

SEC. 107. DETERMINATION OF ADJACENT ZONES AND PLANNING AREAS.

    Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1333(a)(2)(A)) is amended in the first sentence by striking ``, 
and the President'' and all that follows through the end of the 
sentence and inserting the following: ``. The lines extending seaward 
and defining each State's Adjacent Zone, and each OCS Planning Area, 
are as indicated on the maps for each outer Continental Shelf region 
entitled `Alaska OCS Region State Adjacent Zone and OCS Planning 
Areas', `Pacific OCS Region State Adjacent Zones and OCS Planning 
Areas', `Gulf of Mexico OCS Region State Adjacent Zones and OCS 
Planning Areas', and `Atlantic OCS Region State Adjacent Zones and OCS 
Planning Areas', all of which are dated September 2005 and on file in 
the Office of the Director, Minerals Management Service.''.

SEC. 108. ADMINISTRATION OF LEASING.

    Section 5 of the Outer Continental Shelf Lands Act (43 U.S.C. 1334) 
is amended by adding at the end the following:
    ``(k) Voluntary Partial Relinquishment of a Lease.--Any lessee of a 
producing lease may relinquish to the Secretary any portion of a lease 
that the lessee has no interest in producing and that the Secretary 
finds is geologically prospective. In return for any such 
relinquishment, the Secretary shall provide to the lessee a royalty 
incentive for the portion of the lease retained by the lessee, in 
accordance with regulations promulgated by the Secretary to carry out 
this subsection. The Secretary shall publish final regulations 
implementing this subsection within 365 days after the date of the 
enactment of the Deep Ocean Energy Resources Act of 2008.
    ``(l) Natural Gas Lease Regulations.--Not later than July 1, 2010, 
the Secretary shall publish a final regulation that shall--
            ``(1) establish procedures for entering into natural gas 
        leases;
            ``(2) ensure that natural gas leases are only available for 
        tracts on the outer Continental Shelf that are wholly within 
        100 miles of the coastline within an area withdrawn from 
        disposition by leasing on the day after the date of enactment 
        of the Deep Ocean Energy Resources Act of 2008;
            ``(3) provide that natural gas leases shall contain the 
        same rights and obligations established for oil and gas leases, 
        except as otherwise provided in the Deep Ocean Energy Resources 
        Act of 2008;
            ``(4) provide that, in reviewing the adequacy of bids for 
        natural gas leases, the value of any crude oil estimated to be 
        contained within any tract shall be excluded;
            ``(5) provide that any crude oil produced from a well and 
        reinjected into the leased tract shall not be subject to 
        payment of royalty, and that the Secretary shall consider, in 
        setting the royalty rates for a natural gas lease, the 
        additional cost to the lessee of not producing any crude oil; 
        and
            ``(6) provide that any Federal law that applies to an oil 
        and gas lease on the outer Continental Shelf shall apply to a 
        natural gas lease unless otherwise clearly inapplicable.''.

SEC. 109. GRANT OF LEASES BY SECRETARY.

    Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) 
is amended--
            (1) in subsection (a)(1) by inserting after the first 
        sentence the following: ``Further, the Secretary may grant 
        natural gas leases in a manner similar to the granting of oil 
        and gas leases and under the various bidding systems available 
        for oil and gas leases.'';
            (2) by adding at the end of subsection (b) the following: 
        ``The Secretary may issue more than one lease for a given tract 
        if each lease applies to a separate and distinct range of 
        vertical depths, horizontal surface area, or a combination of 
        the two. The Secretary may issue regulations that the Secretary 
        determines are necessary to manage such leases consistent with 
        the purposes of this Act.'';
            (3) by amending subsection (p)(2)(B) to read as follows:
                    ``(B) The Secretary shall provide for the payment 
                to coastal states, and their local coastal governments, 
                of 75 percent of Federal receipts from projects 
                authorized under this section located partially or 
                completely within the area extending seaward of State 
                submerged lands out to 4 marine leagues from the 
                coastline, and the payment to coastal states of 50 
                percent of the receipts from projects completely 
                located in the area more than 4 marine leagues from the 
                coastline. Payments shall be based on a formula 
                established by the Secretary by rulemaking no later 
                than 180 days after the date of the enactment of the 
                Deep Ocean Energy Resources Act of 2008 that provides 
                for equitable distribution, based on proximity to the 
                project, among coastal states that have coastline that 
                is located within 200 miles of the geographic center of 
                the project.'';
            (4) by adding at the end the following:
    ``(q) Natural Gas Leases.--
            ``(1) Right to produce natural gas.--A lessee of a natural 
        gas lease shall have the right to produce the natural gas from 
        a field on a natural gas leased tract if the Secretary 
        estimates that the discovered field has at least 40 percent of 
        the economically recoverable Btu content of the field contained 
        within natural gas and such natural gas is economical to 
        produce.
            ``(2) Crude oil.--A lessee of a natural gas lease may not 
        produce crude oil from the lease unless the Governor of the 
        Adjacent State agrees to such production.
            ``(3) Estimates of btu content.--The Secretary shall make 
        estimates of the natural gas Btu content of discovered fields 
        on a natural gas lease only after the completion of at least 
        one exploration well, the data from which has been tied to the 
        results of a three-dimensional seismic survey of the field. The 
        Secretary may not require the lessee to further delineate any 
        discovered field prior to making such estimates.
            ``(4) Definition of natural gas.--For purposes of a natural 
        gas lease, natural gas means natural gas and all substances 
        produced in association with gas, including, but not limited 
        to, hydrocarbon liquids (other than crude oil) that are 
        obtained by the condensation of hydrocarbon vapors and separate 
        out in liquid form from the produced gas stream.
    ``(r) Removal of Restrictions on Joint Bidding in Certain Areas of 
the Outer Continental Shelf.--Restrictions on joint bidders shall no 
longer apply to tracts located in the Alaska OCS Region. Such 
restrictions shall not apply to tracts in other OCS regions determined 
to be `frontier tracts' or otherwise `high cost tracts' under final 
regulations that shall be published by the Secretary by not later than 
365 days after the date of the enactment of the Deep Ocean Energy 
Resources Act of 2008.
    ``(s) Royalty Suspension Provisions.--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 
(January 1, 2006 dollars) and $6.75 for natural gas (January 1, 2006 
dollars).
    ``(t) Conservation of Resources Fees.--Not later than one year 
after the date of the enactment of the Deep Ocean Energy Resources Act 
of 2008, the Secretary by regulation shall establish a conservation of 
resources fee for nonproducing leases that will apply to new and 
existing leases which shall be set at $3.75 per acre per year. This fee 
shall apply from and after October 1, 2008, and shall be treated as 
offsetting receipts.'';
            (5) by striking subsection (a)(3)(A) and redesignating the 
        subsequent subparagraphs as subparagraphs (A) and (B), 
        respectively;
            (6) in subsection (a)(3)(A) (as so redesignated) by 
        striking ``In the Western'' and all that follows through ``the 
        Secretary'' the first place it appears and inserting ``The 
        Secretary''; and
            (7) effective October 1, 2008, in subsection (g)--
                    (A) by striking all after ``(g)'', except paragraph 
                (3);
                    (B) by striking the last sentence of paragraph (3); 
                and
                    (C) by striking ``(3)''.

SEC. 110. DISPOSITION OF RECEIPTS.

    Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338) 
is amended--
            (1) by designating the existing text as subsection (a);
            (2) in subsection (a) (as so designated) by inserting ``, 
        if not paid as otherwise provided in this title'' after 
        ``receipts''; and
            (3) by adding the following:
    ``(b) Treatment of OCS Receipts From Tracts Completely Within 100 
Miles of the Coastline.--
            ``(1) Deposit.--The Secretary shall deposit into a separate 
        account in the Treasury the portion of OCS Receipts for each 
        fiscal year that will be shared under paragraphs (2), (3), and 
        (4).
            ``(2) Phased-in receipts sharing.--
                    ``(A) Beginning October 1, 2008, the Secretary 
                shall share OCS Receipts derived from the following 
                areas:
                            ``(i) Lease tracts located on portions of 
                        the Gulf of Mexico OCS Region completely beyond 
                        4 marine leagues from any coastline and 
                        completely within 100 miles of any coastline 
                        that were available for leasing under the 2002-
                        2007 5-Year OCS Oil and Gas Leasing Program.
                            ``(ii) Lease tracts in production prior to 
                        October 1, 2008, completely beyond 4 marine 
                        leagues from any coastline and completely 
                        within 100 miles of any coastline located on 
                        portions of the OCS that were not available for 
                        leasing under the 2002-2007 5-Year OCS Oil and 
                        Gas Leasing Program.
                            ``(iii) Lease tracts for which leases are 
                        issued prior to October 1, 2008, located in the 
                        Alaska OCS Region completely beyond 4 marine 
                        leagues from any coastline and completely 
                        within 100 miles of the coastline.
                    ``(B) The Secretary shall share the following 
                percentages of OCS Receipts from the leases described 
                in subparagraph (A) derived during the fiscal year 
                indicated:
                            ``(i) For fiscal year 2009, 5 percent.
                            ``(ii) For fiscal year 2010, 8 percent.
                            ``(iii) For fiscal year 2011, 11 percent.
                            ``(iv) For fiscal year 2012, 14 percent.
                            ``(v) For fiscal year 2013, 17 percent.
                            ``(vi) For fiscal year 2014, 20 percent.
                            ``(vii) For fiscal year 2015, 23 percent.
                            ``(viii) For fiscal year 2016, 26 percent.
                            ``(ix) For fiscal year 2017, 29 percent.
                            ``(x) For fiscal year 2018, 32 percent.
                            ``(xi) For fiscal year 2019, 35 percent.
                            ``(xii) For fiscal year 2020 and each 
                        subsequent fiscal year, 37.5 percent.
                    ``(C) The provisions of this paragraph shall not 
                apply to leases that could not have been issued but for 
                section 5(k) of this Act or section 6(2) of the Deep 
                Ocean Energy Resources Act of 2008.
            ``(3) Immediate receipts sharing.--Beginning October 1, 
        2008, the Secretary shall share 37.50 percent of OCS Receipts 
        derived from all leases located completely beyond 4 marine 
        leagues from any coastline and completely within 100 miles of 
        any coastline not included within the provisions of paragraph 
        (2).
            ``(4) Receipts sharing from tracts within 4 marine leagues 
        of any coastline.--
                    ``(A) Areas described in paragraph (2).--Beginning 
                October 1, 2008, and continuing through September 30, 
                2010, 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, 2010, 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 75 percent.
                    ``(B) Areas not described in paragraph (2).--
                Beginning October 1, 2008, the Secretary shall share 75 
                percent of OCS receipts derived from all leases located 
                completely or partially within 4 marine leagues from 
                any coastline within areas not described paragraph (2).
            ``(5) Allocations.--The Secretary shall allocate the OCS 
        Receipts deposited into the separate account established by 
        paragraph (1) that are shared under paragraphs (2), (3), and 
        (4) as follows:
                    ``(A) Bonus bids.--Deposits derived from bonus bids 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year to the 
                Adjacent State.
                    ``(B) Royalties.--Deposits derived from royalties 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year to the 
                Adjacent State and any other producing State or States 
                with a leased tract within its Adjacent Zone within 100 
                miles of its coastline that generated royalties during 
                the fiscal year, if the other producing or States have 
                a coastline point within 300 miles of any portion of 
                the leased tract, in which case the amount allocated 
                for the leased tract shall be--
                            ``(i) one-third to the Adjacent State; and
                            ``(ii) two-thirds to each producing State, 
                        including the Adjacent State, inversely 
                        proportional to the distance between the 
                        nearest point on the coastline of the producing 
                        State and the geographic center of the leased 
                        tract.
    ``(c) Treatment of OCS Receipts From Tracts Partially or Completely 
Beyond 100 Miles of the Coastline.--
            ``(1) Deposit.--The Secretary shall deposit into a separate 
        account in the Treasury the portion of OCS Receipts for each 
        fiscal year that will be shared under paragraphs (2) and (3).
            ``(2) Phased-in receipts sharing.--
                    ``(A) Beginning October 1, 2008, the Secretary 
                shall share OCS Receipts derived from the following 
                areas:
                            ``(i) Lease tracts located on portions of 
                        the Gulf of Mexico OCS Region partially or 
                        completely beyond 100 miles of any coastline 
                        that were available for leasing under the 2002-
                        2007 5-Year OCS Oil and Gas Leasing Program.
                            ``(ii) Lease tracts in production prior to 
                        October 1, 2008, partially or completely beyond 
                        100 miles of any coastline located on portions 
                        of the OCS that were not available for leasing 
                        under the 2002-2007 5-Year OCS Oil and Gas 
                        Leasing Program.
                            ``(iii) Lease tracts for which leases are 
                        issued prior to October 1, 2008, located in the 
                        Alaska OCS Region partially or completely 
                        beyond 100 miles of the coastline.
                    ``(B) The Secretary shall share the following 
                percentages of OCS Receipts from the leases described 
                in subparagraph (A) derived during the fiscal year 
                indicated:
                            ``(i) For fiscal year 2009, 5 percent.
                            ``(ii) For fiscal year 2010, 8 percent.
                            ``(iii) For fiscal year 2011, 11 percent.
                            ``(iv) For fiscal year 2012, 14 percent.
                            ``(v) For fiscal year 2013, 17 percent.
                            ``(vi) For fiscal year 2014, 20 percent.
                            ``(vii) For fiscal year 2015, 23 percent.
                            ``(viii) For fiscal year 2016, 26 percent.
                            ``(ix) For fiscal year 2017, 29 percent.
                            ``(x) For fiscal year 2018, 32 percent.
                            ``(xi) For fiscal year 2019, 35 percent.
                            ``(xii) For fiscal year 2020 and each 
                        subsequent fiscal year, 37.5 percent.
                    ``(C) The provisions of this paragraph shall not 
                apply to leases that could not have been issued but for 
                section 5(k) of this Act or section 6(2) of the Deep 
                Ocean Energy Resources Act of 2008.
            ``(3) Immediate receipts sharing.--Beginning October 1, 
        2008, the Secretary shall share 37.5 percent of OCS Receipts 
        derived on and after October 1, 2008, from all leases located 
        partially or completely beyond 100 miles of any coastline not 
        included within the provisions of paragraph (2), except that 
        the Secretary shall only share 25 percent of such OCS Receipts 
        derived from all such leases within a State's Adjacent Zone if 
        no leasing is allowed within any portion of that State's 
        Adjacent Zone located completely within 100 miles of any 
        coastline.
            ``(4) Allocations.--The Secretary shall allocate the OCS 
        Receipts deposited into the separate account established by 
        paragraph (1) that are shared under paragraphs (2) and (3) as 
        follows:
                    ``(A) Bonus bids.--Deposits derived from bonus bids 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year to the 
                Adjacent State.
                    ``(B) Royalties.--Deposits derived from royalties 
                from a leased tract, including interest thereon, shall 
                be allocated at the end of each fiscal year to the 
                Adjacent State and any other producing State or States 
                with a leased tract within its Adjacent Zone partially 
                or completely beyond 100 miles of its coastline that 
                generated royalties during the fiscal year, if the 
                other producing State or States have a coastline point 
                within 300 miles of any portion of the leased tract, in 
                which case the amount allocated for the leased tract 
                shall be--
                            ``(i) one-third to the Adjacent State; and
                            ``(ii) two-thirds to each producing State, 
                        including the Adjacent State, inversely 
                        proportional to the distance between the 
                        nearest point on the coastline of the producing 
                        State and the geographic center of the leased 
                        tract.
    ``(d) Transmission of Allocations.--
            ``(1) In general.--Not later than 90 days after the end of 
        each fiscal year, the Secretary shall transmit--
                    ``(A) to each State 60 percent of such State's 
                allocations under subsections (b)(5)(A), (b)(5)(B), 
                (c)(4)(A), and (c)(4)(B) for the immediate prior fiscal 
                year;
                    ``(B) to each coastal county-equivalent and 
                municipal political subdivisions of such State a total 
                of 40 percent of such State's allocations under 
                subsections (b)(5)(A), (b)(5)(B), (c)(4)(A), and 
                (c)(4)(B), together with all accrued interest thereon; 
                and
                    ``(C) the remaining allocations under subsections 
                (b)(5) and (c)(4), together with all accrued interest 
                thereon.
            ``(2) Allocations to coastal county-equivalent political 
        subdivisions.--The Secretary shall make an initial allocation 
        of the OCS Receipts to be shared under paragraph (1)(B) as 
        follows:
                    ``(A) 25 percent shall be allocated to coastal 
                county-equivalent political subdivisions that are 
                completely more than 25 miles landward of the coastline 
                and at least a part of which lies not more than 75 
                miles landward from the coastline, with the allocation 
                among such coastal county-equivalent political 
                subdivisions based on population.
                    ``(B) 75 percent shall be allocated to coastal 
                county-equivalent political subdivisions that are 
                completely or partially less than 25 miles landward of 
                the coastline, with the allocation among such coastal 
                county-equivalent political subdivisions to be further 
                allocated as follows:
                            ``(i) 25 percent shall be allocated based 
                        on the ratio of such coastal county-equivalent 
                        political subdivision's population to the 
                        coastal population of all coastal county-
                        equivalent political subdivisions in the State.
                            ``(ii) 25 percent shall be allocated based 
                        on the ratio of such coastal county-equivalent 
                        political subdivision's coastline miles to the 
                        coastline miles of all coastal county-
                        equivalent political subdivisions in the State 
                        as calculated by the Secretary. In such 
                        calculations, coastal county-equivalent 
                        political subdivisions without a coastline 
                        shall be considered to have 50 percent of the 
                        average coastline miles of the coastal county-
                        equivalent political subdivisions that do have 
                        coastlines.
                            ``(iii) 25 percent shall be allocated to 
                        all coastal county-equivalent political 
                        subdivisions having a coastline point within 
                        300 miles of the leased tract for which OCS 
                        Receipts are being shared based on a formula 
                        that allocates the funds based on such coastal 
                        county-equivalent political subdivision's 
                        relative distance from the leased tract.
                            ``(iv) 25 percent shall be allocated to all 
                        coastal county-equivalent political 
                        subdivisions having a coastline point within 
                        300 miles of the leased tract for which OCS 
                        Receipts are being shared based on the relative 
                        level of outer Continental Shelf oil and gas 
                        activities in a coastal political subdivision 
                        compared to the level of outer Continental 
                        Shelf activities in all coastal political 
                        subdivisions in the State. The Secretary shall 
                        define the term `outer Continental Shelf oil 
                        and gas activities' for purposes of this 
                        subparagraph to include, but not be limited to, 
                        construction of vessels, drillships, and 
                        platforms involved in exploration, production, 
                        and development on the outer Continental Shelf; 
                        support and supply bases, ports, and related 
                        activities; offices of geologists, 
                        geophysicists, engineers, and other 
                        professionals involved in support of 
                        exploration, production, and development of oil 
                        and gas on the outer Continental Shelf; 
                        pipelines and other means of transporting oil 
                        and gas production from the outer Continental 
                        Shelf; and processing and refining of oil and 
                        gas production from the outer Continental 
                        Shelf. For purposes of this subparagraph, if a 
                        coastal county-equivalent political subdivision 
                        does not have a coastline, its coastal point 
                        shall be the point on the coastline closest to 
                        it.
            ``(3) Allocations to coastal municipal political 
        subdivisions.--The initial allocation to each coastal county-
        equivalent political subdivision under paragraph (2) shall be 
        further allocated to the coastal county-equivalent political 
        subdivision and any coastal municipal political subdivisions 
        located partially or wholly within the boundaries of the 
        coastal county-equivalent political subdivision as follows:
                    ``(A) One-third shall be allocated to the coastal 
                county-equivalent political subdivision.
                    ``(B) Two-thirds shall be allocated on a per capita 
                basis to the municipal political subdivisions and the 
                county-equivalent political subdivision, with the 
                allocation to the latter based upon its population not 
                included within the boundaries of a municipal political 
                subdivision.
    ``(e) Investment of Deposits.--Amounts deposited under this section 
shall be invested by the Secretary of the Treasury in securities backed 
by the full faith and credit of the United States having maturities 
suitable to the needs of the account in which they are deposited and 
yielding the highest reasonably available interest rates as determined 
by the Secretary of the Treasury.
    ``(f) Use of Funds.--A recipient of funds under this section may 
use the funds for one or more of the following:
            ``(1) To reduce in-State college tuition at public 
        institutions of higher learning and otherwise support public 
        education, including career technical education.
            ``(2) To make transportation infrastructure improvements.
            ``(3) To reduce taxes.
            ``(4) To promote, fund, and provide for--
                    ``(A) coastal or environmental restoration;
                    ``(B) fish, wildlife, and marine life habitat 
                enhancement;
                    ``(C) waterways construction and maintenance;
                    ``(D) levee construction and maintenance and shore 
                protection; and
                    ``(E) marine and oceanographic education and 
                research.
            ``(5) To promote, fund, and provide for--
                    ``(A) infrastructure associated with energy 
                production activities conducted on the outer 
                Continental Shelf;
                    ``(B) energy demonstration projects;
                    ``(C) supporting infrastructure for shore-based 
                energy projects;
                    ``(D) State geologic programs, including geologic 
                mapping and data storage programs, and state 
                geophysical data acquisition;
                    ``(E) State seismic monitoring programs, including 
                operation of monitoring stations;
                    ``(F) development of oil and gas resources through 
                enhanced recovery techniques;
                    ``(G) alternative energy development, including bio 
                fuels, coal-to-liquids, oil shale, tar sands, 
                geothermal, geopressure, wind, waves, currents, hydro, 
                and other renewable energy;
                    ``(H) energy efficiency and conservation programs; 
                and
                    ``(I) front-end engineering and design for 
                facilities that produce liquid fuels from hydrocarbons 
                and other biological matter.
            ``(6) To promote, fund, and provide for--
                    ``(A) historic preservation programs and projects;
                    ``(B) natural disaster planning and response; and
                    ``(C) hurricane and natural disaster insurance 
                programs.
            ``(7) For any other purpose as determined by State law.
    ``(g) No Accounting Required.--No recipient of funds under this 
section shall be required to account to the Federal Government for the 
expenditure of such funds, except as otherwise may be required by law. 
However, States may enact legislation providing for accounting for and 
auditing of such expenditures. Further, funds allocated under this 
section to States and political subdivisions may be used as matching 
funds for other Federal programs.
    ``(h) Effect of Future Laws.--Enactment of any future Federal 
statute that has the effect, as determined by the Secretary, of 
restricting any Federal agency from spending appropriated funds, or 
otherwise preventing it from fulfilling its pre-existing 
responsibilities as of the date of enactment of the statute, unless 
such responsibilities have been reassigned to another Federal agency by 
the statute with no prevention of performance, to issue any permit or 
other approval impacting on the OCS oil and gas leasing program, or any 
lease issued thereunder, or to implement any provision of this Act 
shall automatically prohibit any sharing of OCS Receipts under this 
section directly with the States, and their coastal political 
subdivisions, for the duration of the restriction. The Secretary shall 
make the determination of the existence of such restricting effects 
within 30 days of a petition by any outer Continental Shelf lessee or 
producing State.
    ``(i) Definitions.--In this section:
            ``(1) Coastal county-equivalent political subdivision.--The 
        term `coastal county-equivalent political subdivision' means a 
        political jurisdiction immediately below the level of State 
        government, including a county, parish, borough in Alaska, 
        independent municipality not part of a county, parish, or 
        borough in Alaska, or other equivalent subdivision of a coastal 
        State, that lies within the coastal zone.
            ``(2) Coastal municipal political subdivision.--The term 
        `coastal municipal political subdivision' means a municipality 
        located within and part of a county, parish, borough in Alaska, 
        or other equivalent subdivision of a State, all or part of 
        which coastal municipal political subdivision lies within the 
        coastal zone.
            ``(3) Coastal population.--The term `coastal population' 
        means the population of all coastal county-equivalent political 
        subdivisions, as determined by the most recent official data of 
        the Census Bureau.
            ``(4) Coastal zone.--The term `coastal zone' means that 
        portion of a coastal State, including the entire territory of 
        any coastal county-equivalent political subdivision at least a 
        part of which lies, within 75 miles landward from the 
        coastline, or a greater distance as determined by State law 
        enacted to implement this section.
            ``(5) Bonus bids.--The term `bonus bids' means all funds 
        received by the Secretary to issue an outer Continental Shelf 
        minerals lease.
            ``(6) Royalties.--The term `royalties' means all funds 
        received by the Secretary from production of oil or natural 
        gas, or the sale of production taken in-kind, from an outer 
        Continental Shelf minerals lease.
            ``(7) Producing state.--The term `producing State' means an 
        Adjacent State having an Adjacent Zone containing leased tracts 
        from which OCS Receipts were derived.
            ``(8) OCS receipts.--The term `OCS Receipts' means bonus 
        bids, royalties, and conservation of resources fees.''.

SEC. 111. RESERVATION OF LANDS AND RIGHTS.

    Section 12 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1341) is amended--
            (1) in subsection (a) by adding at the end the following: 
        ``The President may partially or completely revise or revoke 
        any prior withdrawal made by the President under the authority 
        of this section. The President may not revise or revoke a 
        withdrawal that is extended by a State under subsection (h), 
        nor may the President withdraw from leasing any area for which 
        a State failed to prohibit, or petition to prohibit, leasing 
        under subsection (g). Further, in the area of the outer 
        Continental Shelf more than 100 miles from any coastline, not 
        more than 25 percent of the acreage of any OCS Planning Area 
        may be withdrawn from leasing under this section at any point 
        in time. A withdrawal by the President may be for a term not to 
        exceed 10 years. When considering potential uses of the outer 
        Continental Shelf, to the maximum extent possible, the 
        President shall accommodate competing interests and potential 
        uses.'';
            (2) by adding at the end the following:
    ``(g) Availability for Leasing Within Certain Areas of the Outer 
Continental Shelf.--
            ``(1) Prohibition against leasing.--
                    ``(A) Unavailable for leasing without state 
                request.--Except as otherwise provided in this 
                subsection, from and after enactment of the Deep Ocean 
                Energy Resources Act of 2008, the Secretary shall not 
                offer for leasing for oil and gas, or natural gas, any 
                area within 50 miles of the coastline that was 
                withdrawn from disposition by leasing in the Atlantic 
                OCS Region or the Pacific OCS Region, or the Gulf of 
                Mexico OCS Region Eastern Planning Area, as depicted on 
                the maps referred to in this subparagraph, under the 
                `Memorandum on Withdrawal of Certain Areas of the 
                United States Outer Continental Shelf from Leasing 
                Disposition', 34 Weekly Comp. Pres. Doc. 1111, dated 
                June 12, 1998, or any area within 50 miles of the 
                coastline not withdrawn under that Memorandum that is 
                included within the Gulf of Mexico OCS Region Eastern 
                Planning Area as indicated on the map entitled `Gulf of 
                Mexico OCS Region State Adjacent Zones and OCS Planning 
                Areas' or the Florida Straits Planning Area as 
                indicated on the map entitled `Atlantic OCS Region 
                State Adjacent Zones and OCS Planning Areas', both of 
                which are dated September 2005 and on file in the 
                Office of the Director, Minerals Management Service.
                    ``(B) Areas between 50 and 100 miles from the 
                coastline.--Unless an Adjacent State petitions under 
                subsection (h) within one year after the date of the 
                enactment of the Deep Ocean Energy Resources Act of 
                2008 for natural gas leasing or by June 30, 2010, for 
                oil and gas leasing, the Secretary shall offer for 
                leasing any area more than 50 miles but less than 100 
                miles from the coastline that was withdrawn from 
                disposition by leasing in the Atlantic OCS Region, the 
                Pacific OCS Region, or the Gulf of Mexico OCS Region 
                Eastern Planning Area, as depicted on the maps referred 
                to in this subparagraph, under the `Memorandum on 
                Withdrawal of Certain Areas of the United States Outer 
                Continental Shelf from Leasing Disposition', 34 Weekly 
                Comp. Pres. Doc. 1111, dated June 12, 1998, or any area 
                more than 50 miles but less than 100 miles of the 
                coastline not withdrawn under that Memorandum that is 
                included within the Gulf of Mexico OCS Region Eastern 
                Planning Area as indicated on the map entitled `Gulf of 
                Mexico OCS Region State Adjacent Zones and OCS Planning 
                Areas' or within the Florida Straits Planning Area as 
                indicated on the map entitled `Atlantic OCS Region 
                State Adjacent Zones and OCS Planning Areas', both of 
                which are dated September 2005 and on file in the 
                Office of the Director, Minerals Management Service.
            ``(2) Revocation of withdrawal.--The provisions of the 
        `Memorandum on Withdrawal of Certain Areas of the United States 
        Outer Continental Shelf from Leasing Disposition', 34 Weekly 
        Comp. Pres. Doc. 1111, dated June 12, 1998, are hereby revoked 
        and are no longer in effect. Any tract only partially added to 
        the Gulf of Mexico OCS Region Central Planning Area by this Act 
        shall be eligible for leasing of the part of such tract that is 
        included within the Gulf of Mexico OCS Region Central Planning 
        Area, and the remainder of such tract that lies outside of the 
        Gulf of Mexico OCS Region Central Planning Area may be 
        developed and produced by the lessee of such partial tract 
        using extended reach or similar drilling from a location on a 
        leased area. Further, any area in the OCS withdrawn from 
        leasing may be leased, and thereafter developed and produced by 
        the lessee using extended reach or similar drilling from a 
        location on a leased area located in an area available for 
        leasing.
            ``(3) Petition for leasing.--
                    ``(A) In general.--The Governor of the State, upon 
                concurrence of its legislature, may submit to the 
                Secretary a petition requesting that the Secretary make 
                available any area that is within the State's Adjacent 
                Zone, included within the provisions of paragraph (1), 
                and that (i) is greater than 25 miles from any point on 
                the coastline of a Neighboring State for the conduct of 
                offshore leasing, pre-leasing, and related activities 
                with respect to natural gas leasing; or (ii) is greater 
                than 50 miles from any point on the coastline of a 
                Neighboring State for the conduct of offshore leasing, 
                pre-leasing, and related activities with respect to oil 
                and gas leasing. The Adjacent State may also petition 
                for leasing any other area within its Adjacent Zone if 
                leasing is allowed in the similar area of the Adjacent 
                Zone of the applicable Neighboring State, or if not 
                allowed, if the Neighboring State, acting through its 
                Governor, expresses its concurrence with the petition. 
                The Secretary shall only consider such a petition upon 
                making a finding that leasing is allowed in the similar 
                area of the Adjacent Zone of the applicable Neighboring 
                State or upon receipt of the concurrence of the 
                Neighboring State. The date of receipt by the Secretary 
                of such concurrence by the Neighboring State shall 
                constitute the date of receipt of the petition for that 
                area for which the concurrence applies.
                    ``(B) Limitations on leasing.--In its petition, a 
                State with an Adjacent Zone that contains leased tracts 
                may condition new leasing for oil and gas, or natural 
                gas for tracts within 25 miles of the coastline by--
                            ``(i) requiring a net reduction in the 
                        number of production platforms;
                            ``(ii) requiring a net increase in the 
                        average distance of production platforms from 
                        the coastline;
                            ``(iii) limiting permanent surface 
                        occupancy on new leases to areas that are more 
                        than 10 miles from the coastline;
                            ``(iv) limiting some tracts to being 
                        produced from shore or from platforms located 
                        on other tracts; or
                            ``(v) other conditions that the Adjacent 
                        State may deem appropriate as long as the 
                        Secretary does not determine that production is 
                        made economically or technically impracticable 
                        or otherwise impossible.
                    ``(C) Action by secretary.--Not later than 90 days 
                after receipt of a petition under subparagraph (A), the 
                Secretary shall approve the petition, unless the 
                Secretary determines that leasing the area would 
                probably cause serious harm or damage to the marine 
                resources of the State's Adjacent Zone. Prior to 
                approving the petition, the Secretary shall complete an 
                environmental assessment that documents the anticipated 
                environmental effects of leasing in the area included 
                within the scope of the petition.
                    ``(D) Failure to act.--If the Secretary fails to 
                approve or deny a petition in accordance with 
                subparagraph (C) the petition shall be considered to be 
                approved 90 days after receipt of the petition.
                    ``(E) Amendment of the 5-year leasing program.--
                Notwithstanding section 18, within 180 days of the 
                approval of a petition under subparagraph (C) or (D), 
                after the expiration of the time limits in paragraph 
                (1)(B), and within 180 days after the enactment of the 
                Deep Ocean Energy Resources Act of 2008 for the areas 
                made available for leasing under paragraph (2), the 
                Secretary shall amend the current 5-Year Outer 
                Continental Shelf Oil and Gas Leasing Program to 
                include a lease sale or sales for at least 75 percent 
                of the associated areas, unless there are, from the 
                date of approval, expiration of such time limits, or 
                enactment, as applicable, fewer than 12 months 
                remaining in the current 5-Year Leasing Program in 
                which case the Secretary shall include the associated 
                areas within lease sales under the next 5-Year Leasing 
                Program. For purposes of amending the 5-Year Program in 
                accordance with this section, further consultations 
                with States shall not be required. For purposes of this 
                section, an environmental assessment performed under 
                the provisions of the National Environmental Policy Act 
                of 1969 to assess the effects of approving the petition 
                shall be sufficient to amend the 5-Year Leasing 
                Program.
    ``(h) Option To Extend Withdrawal From Leasing Within Certain Areas 
of the Outer Continental Shelf.--A State, through its Governor and upon 
the concurrence of its legislature, may extend for a period of time of 
up to 5 years for each extension the withdrawal from leasing for all or 
part of any area within the State's Adjacent Zone located more than 50 
miles, but less than 100 miles, from the coastline that is subject to 
subsection (g)(1)(B). A State may extend multiple times for any 
particular area but not more than once per calendar year for any 
particular area. A State must prepare separate extensions, with 
separate votes by its legislature, for oil and gas leasing and for 
natural gas leasing. An extension by a State may affect some areas to 
be withdrawn from all leasing and some areas to be withdrawn only from 
one type of leasing.
    ``(i) Effect of Other Laws.--Adoption by any Adjacent State of any 
constitutional provision, or enactment of any State statute, that has 
the effect, as determined by the Secretary, of restricting either the 
Governor or the Legislature, or both, from exercising full discretion 
related to subsection (g) or (h), or both, shall automatically (1) 
prohibit any sharing of OCS Receipts under this Act with the Adjacent 
State, and its coastal political subdivisions, and (2) prohibit the 
Adjacent State from exercising any authority under subsection (h), for 
the duration of the restriction. The Secretary shall make the 
determination of the existence of such restricting constitutional 
provision or State statute within 30 days of a petition by any outer 
Continental Shelf lessee or coastal State.
    ``(j) Prohibition on Leasing East of the Military Mission Line.--
            ``(1) Notwithstanding any other provision of law, from and 
        after the enactment of the Deep Ocean Energy Resources Act of 
        2008, prior to January 1, 2022, 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 unless a waiver is issued by the Secretary 
        of Defense. If such a waiver is granted, 62.5 percent of the 
        OCS Receipts from a lease within such area issued because of 
        such waiver shall be paid annually to the National Guards of 
        all States having a point within 1000 miles of such a lease, 
        allocated among the States on a per capita basis using the 
        entire population of such States.
            ``(2) In this subsection, the term `military mission line' 
        means a line located at 86 degrees, 41 minutes West Longitude, 
        and extending south from the coast of Florida to the outer 
        boundary of United States territorial waters in the Gulf of 
        Mexico.''.

SEC. 112. OUTER CONTINENTAL SHELF LEASING PROGRAM.

    Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344) is amended--
            (1) in subsection (a), by adding at the end of paragraph 
        (3) the following: ``The Secretary shall, in each 5-year 
        program, include lease sales that when viewed as a whole 
        propose to offer for oil and gas or natural gas leasing at 
        least 75 percent of the available unleased acreage within each 
        OCS Planning Area. Available unleased acreage is that portion 
        of the outer Continental Shelf that is not under lease at the 
        time of the proposed lease sale, and has not otherwise been 
        made unavailable for leasing by law.'';
            (2) in subsection (c), by striking so much as precedes 
        paragraph (3) and inserting the following:
    ``(c)(1) During the preparation of any proposed leasing program 
under this section, the Secretary shall consider and analyze leasing 
throughout the entire Outer Continental Shelf without regard to any 
other law affecting such leasing. During this preparation the Secretary 
shall invite and consider suggestions from any interested Federal 
agency, including the Attorney General, in consultation with the 
Federal Trade Commission, and from the Governor of any coastal State. 
The Secretary may also invite or consider any suggestions from the 
executive of any local government in a coastal State that have been 
previously submitted to the Governor of such State, and from any other 
person. Further, the Secretary shall consult with the Secretary of 
Defense regarding military operational needs in the outer Continental 
Shelf. The Secretary shall work with the Secretary of Defense to 
resolve any conflicts that might arise regarding offering any area of 
the outer Continental Shelf for oil and gas or natural gas leasing. If 
the Secretaries are not able to resolve all such conflicts, any 
unresolved issues shall be elevated to the President for resolution.
    ``(2) After the consideration and analysis required by paragraph 
(1), including the consideration of the suggestions received from any 
interested Federal agency, the Federal Trade Commission, the Governor 
of any coastal State, any local government of a coastal State, and any 
other person, the Secretary shall publish in the Federal Register a 
proposed leasing program accompanied by a draft environmental impact 
statement prepared pursuant to the National Environmental Policy Act of 
1969. After the publishing of the proposed leasing program and during 
the comment period provided for on the draft environmental impact 
statement, the Secretary shall submit a copy of the proposed program to 
the Governor of each affected State for review and comment. The 
Governor may solicit comments from those executives of local 
governments in the Governor's State that the Governor, in the 
discretion of the Governor, determines will be affected by the proposed 
program. If any comment by such Governor is received by the Secretary 
at least 15 days prior to submission to the Congress pursuant to 
paragraph (3) and includes a request for any modification of such 
proposed program, the Secretary shall reply in writing, granting or 
denying such request in whole or in part, or granting such request in 
such modified form as the Secretary considers appropriate, and stating 
the Secretary's reasons therefor. All such correspondence between the 
Secretary and the Governor of any affected State, together with any 
additional information and data relating thereto, shall accompany such 
proposed program when it is submitted to the Congress.''; and
            (3) by adding at the end the following:
    ``(i) Projection of State Adjacent Zone Resources and State and 
Local Government Shares of OCS Receipts.--Concurrent with the 
publication of the scoping notice at the beginning of the development 
of each 5-year outer Continental Shelf oil and gas leasing program, or 
as soon thereafter as possible, the Secretary shall--
            ``(1) provide to each Adjacent State a current estimate of 
        proven and potential oil and gas resources located within the 
        State's Adjacent Zone; and
            ``(2) provide to each Adjacent State, and coastal political 
        subdivisions thereof, a best-efforts projection of the OCS 
        Receipts that the Secretary expects will be shared with each 
        Adjacent State, and its coastal political subdivisions, using 
        the assumption that the unleased tracts within the State's 
        Adjacent Zone are fully made available for leasing, including 
        long-term projected OCS Receipts. In addition, the Secretary 
        shall include a macroeconomic estimate of the impact of such 
        leasing on the national economy and each State's economy, 
        including investment, jobs, revenues, personal income, and 
        other categories.''.

SEC. 113. COORDINATION WITH ADJACENT STATES.

    Section 19 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1345) is amended--
            (1) in subsection (a) in the first sentence by inserting 
        ``, for any tract located within the Adjacent State's Adjacent 
        Zone,'' after ``government''; and
            (2) by adding the following:
    ``(f)(1) No Federal agency may permit or otherwise approve, without 
the concurrence of the Adjacent State, the construction of a crude oil 
or petroleum products (or both) pipeline within the part of the 
Adjacent State's Adjacent Zone that is withdrawn from oil and gas or 
natural gas leasing, except that such a pipeline may be approved, 
without such Adjacent State's concurrence, to pass through such 
Adjacent Zone if at least 50 percent of the production projected to be 
carried by the pipeline within its first 10 years of operation is from 
areas of the Adjacent State's Adjacent Zone.
    ``(2) No State may prohibit the construction within its Adjacent 
Zone or its State waters of a natural gas pipeline that will transport 
natural gas produced from the outer Continental Shelf. However, an 
Adjacent State may prevent a proposed natural gas pipeline landing 
location if it proposes two alternate landing locations in the Adjacent 
State, acceptable to the Adjacent State, located within 50 miles on 
either side of the proposed landing location.''.

SEC. 114. ENVIRONMENTAL STUDIES.

    Section 20(d) of the Outer Continental Shelf Lands Act (43 U.S.C. 
1346) is amended--
            (1) by inserting ``(1)'' after ``(d)''; and
            (2) by adding at the end the following:
            ``(2) For all programs, lease sales, leases, and actions 
        under this Act, the following shall apply regarding the 
        application of the National Environmental Policy Act of 1969:
                    ``(A) Granting or directing lease suspensions and 
                the conduct of all preliminary activities on outer 
                Continental Shelf tracts, including seismic activities, 
                are categorically excluded from the need to prepare 
                either an environmental assessment or an environmental 
                impact statement, and the Secretary shall not be 
                required to analyze whether any exceptions to a 
                categorical exclusion apply for activities conducted 
                under the authority of this Act.
                    ``(B) The environmental impact statement developed 
                in support of each 5-year oil and gas leasing program 
                provides the environmental analysis for all lease sales 
                to be conducted under the program and such sales shall 
                not be subject to further environmental analysis.
                    ``(C) Exploration plans shall not be subject to any 
                requirement to prepare an environmental impact 
                statement, and the Secretary may find that exploration 
                plans are eligible for categorical exclusion due to the 
                impacts already being considered within an 
                environmental impact statement or due to mitigation 
                measures included within the plan.
                    ``(D) Within each OCS Planning Area, after the 
                preparation of the first development and production 
                plan environmental impact statement for a leased tract 
                within the Area, future development and production 
                plans for leased tracts within the Area shall only 
                require the preparation of an environmental assessment 
                unless the most recent development and production plan 
                environmental impact statement within the Area was 
                finalized more than 10 years prior to the date of the 
                approval of the plan, in which case an environmental 
                impact statement shall be required.''.

SEC. 115. FEDERAL ENERGY NATURAL RESOURCES ENHANCEMENT ACT OF 2008.

    (a) Findings.--The Congress finds the following:
            (1) Energy and minerals exploration, development, and 
        production on Federal onshore and offshore lands, including 
        bio-based fuel, natural gas, minerals, oil, geothermal, and 
        power from wind, waves, currents, and thermal energy, involves 
        significant outlays of funds by Federal and State wildlife, 
        fish, and natural resource management agencies for 
        environmental studies, planning, development, monitoring, and 
        management of wildlife, fish, air, water, and other natural 
        resources.
            (2) State wildlife, fish, and natural resource management 
        agencies are funded primarily through permit and license fees 
        paid to the States by the general public to hunt and fish, and 
        through Federal excise taxes on equipment used for these 
        activities.
            (3) Funds generated from consumptive and recreational uses 
        of wildlife, fish, and other natural resources currently are 
        inadequate to address the natural resources related to energy 
        and minerals development on Federal onshore and offshore lands.
            (4) Funds available to Federal agencies responsible for 
        managing Federal onshore and offshore lands and Federal-trust 
        wildlife and fish species and their habitats are inadequate to 
        address the natural resources related to energy and minerals 
        development on Federal onshore and offshore lands.
            (5) Receipts derived from sales, bonus bids, and royalties 
        under the mineral leasing laws of the United States are paid to 
        the Treasury through the Minerals Management Service of the 
        Department of the Interior.
            (6) None of the receipts derived from sales, bonus bids, 
        and royalties under the minerals leasing laws of the United 
        States are paid to the Federal or State agencies to examine, 
        monitor, and manage wildlife, fish, air, water, and other 
        natural resources related to natural gas, oil, and mineral 
        exploration and development.
    (b) Purposes.--It is the purpose of this section to--
            (1) authorize expenditures for the monitoring and 
        management of wildlife and fish, and their habitats, and air, 
        water, and other natural resources related to energy and 
        minerals development on Federal onshore and offshore lands;
            (2) authorize expenditures for each fiscal year to the 
        Secretary of the Interior and the States; and
            (3) use the appropriated funds to secure the necessary 
        trained workforce or contractual services to conduct 
        environmental studies, planning, development, monitoring, and 
        post-development management of wildlife and fish and their 
        habitats and air, water, and other natural resources that may 
        be related to bio-based fuel, gas, mineral, oil, wind, or other 
        energy exploration, development, transportation, transmission, 
        and associated activities on Federal onshore and offshore 
        lands, including, but not limited to--
                    (A) pertinent research, surveys, and environmental 
                analyses conducted to identify any impacts on wildlife, 
                fish, air, water, and other natural resources from 
                energy and mineral exploration, development, 
                production, and transportation or transmission;
                    (B) projects to maintain, improve, or enhance 
                wildlife and fish populations and their habitats or 
                air, water, or other natural resources, including 
                activities under the Endangered Species Act of 1973;
                    (C) research, surveys, environmental analyses, and 
                projects that assist in managing, including mitigating 
                either onsite or offsite, or both, the impacts of 
                energy and mineral activities on wildlife, fish, air, 
                water, and other natural resources; and
                    (D) projects to teach young people to live off the 
                land.
    (c) Definitions.--In this section:
            (1) Enhancement program.--The term ``Enhancement Program'' 
        means the Federal Energy Natural Resources Enhancement Program 
        established by this section.
            (2) State.--The term ``State'' means the Governor of the 
        State.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out the Enhancement Program $150,000,000 for 
fiscal year 2009 and each fiscal year thereafter.
    (e) Establishment of Federal Energy Natural Resources Enhancement 
Program.--
            (1) In general.--There is established the Federal Energy 
        Natural Resources Enhancement Program.
            (2) Payment to secretary of the interior.--Beginning with 
        fiscal year 2009, and in each fiscal year thereafter, one-third 
        of amounts appropriated for the Enhancement Program shall be 
        available to the Secretary of the Interior for use for the 
        purposes described in subsection (b)(3).
            (3) Payment to states.--
                    (A) In general.--Beginning with fiscal year 2009, 
                and in each fiscal year thereafter, two-thirds of 
                amounts appropriated for the Enhancement Program shall 
                be available to the States for use for the purposes 
                described in (b)(3).
                    (B) Use of payments by state.--Each State shall use 
                the payments made under this paragraph only for 
                carrying out projects and programs for the purposes 
                described in (b)(3).
                    (C) Encourage use of private funds by state.--Each 
                State shall use the payments made under this paragraph 
                to leverage private funds for carrying out projects for 
                the purposes described in (b)(3).
    (f) Limitation on Use.--Amounts made available under this section 
may not be used for the purchase of any interest in land.
    (g) Reports to Congress.--
            (1) In general.--Beginning in fiscal year 2010 and 
        continuing for each fiscal year thereafter, the Secretary of 
        the Interior and each State receiving funds from the 
        Enhancement Fund shall submit a report to the Committee on 
        Energy and Natural Resources of the Senate and the Committee on 
        Resources of the House of Representatives.
            (2) Required information.--Reports submitted to the 
        Congress by the Secretary of the Interior and States under this 
        subsection shall include the following information regarding 
        expenditures during the previous fiscal year:
                    (A) A summary of pertinent scientific research and 
                surveys conducted to identify impacts on wildlife, 
                fish, and other natural resources from energy and 
                mineral developments.
                    (B) A summary of projects planned and completed to 
                maintain, improve or enhance wildlife and fish 
                populations and their habitats or other natural 
                resources.
                    (C) A list of additional actions that assist, or 
                would assist, in managing, including mitigating either 
                onsite or offsite, or both, the impacts of energy and 
                mineral development on wildlife, fish, and other 
                natural resources.
                    (D) A summary of private (non-Federal) funds used 
                to plan, conduct, and complete the plans and programs 
                identified in paragraphs (2)(A) and (2)(B).

SEC. 116. TERMINATION OF EFFECT OF LAWS PROHIBITING THE SPENDING OF 
              APPROPRIATED FUNDS FOR CERTAIN PURPOSES.

    All provisions of existing Federal law prohibiting the spending of 
appropriated funds to conduct oil and natural gas leasing and 
preleasing activities, or to issue a lease to any person, for any area 
of the outer Continental Shelf shall have no force or effect.

SEC. 117. OUTER CONTINENTAL SHELF INCOMPATIBLE USE.

    (a) In General.--No Federal agency may permit construction or 
operation (or both) of any facility, or designate or maintain a 
restricted transportation corridor or operating area on the Federal 
outer Continental Shelf or in State waters, that will be incompatible 
with, as determined by the Secretary of the Interior, oil and gas or 
natural gas leasing and substantially full exploration and production 
of tracts that are geologically prospective for oil or natural gas (or 
both).
    (b) Exceptions.--Subsection (a) shall not apply to any facility, 
transportation corridor, or operating area the construction, operation, 
designation, or maintenance of which is or will be--
            (1) located in an area of the outer Continental Shelf that 
        is unavailable for oil and gas or natural gas leasing by 
        operation of law;
            (2) used for a military readiness activity (as defined in 
        section 315(f) of Public Law 107-314; 16 U.S.C. 703 note); or
            (3) required in the national interest, as determined by the 
        President.

SEC. 118. REPURCHASE OF CERTAIN LEASES.

    (a) Authority To Repurchase and Cancel Certain Leases.--The 
Secretary of the Interior shall repurchase and cancel any Federal oil 
and gas, geothermal, coal, oil shale, tar sands, or other mineral 
lease, whether onshore or offshore, but not including any outer 
Continental Shelf oil and gas leases that were subject to litigation in 
the Court of Federal Claims on January 1, 2006, if the Secretary finds 
that such lease qualifies for repurchase and cancellation under the 
regulations authorized by this section.
    (b) Regulations.--Not later than 365 days after the date of the 
enactment of this Act, the Secretary shall publish a final regulation 
stating the conditions under which a lease referred to in subsection 
(a) would qualify for repurchase and cancellation, and the process to 
be followed regarding repurchase and cancellation. Such regulation 
shall include, but not be limited to, the following:
            (1) The Secretary shall repurchase and cancel a lease after 
        written request by the lessee upon a finding by the Secretary 
        that--
                    (A) a request by the lessee for a required permit 
                or other approval complied with applicable law, except 
                the Coastal Zone Management Act of 1972 (16 U.S.C. 1451 
                et seq.), and terms of the lease and such permit or 
                other approval was denied;
                    (B) a Federal agency failed to act on a request by 
                the lessee for a required permit, other approval, or 
                administrative appeal within a regulatory or statutory 
                time-frame associated with the requested action, 
                whether advisory or mandatory, or if none, within 180 
                days; or
                    (C) a Federal agency attached a condition of 
                approval, without agreement by the lessee, to a 
                required permit or other approval if such condition of 
                approval was not mandated by Federal statute or 
                regulation in effect on the date of lease issuance, or 
                was not specifically allowed under the terms of the 
                lease.
            (2) A lessee shall not be required to exhaust 
        administrative remedies regarding a permit request, 
        administrative appeal, or other required request for approval 
        for the purposes of this section.
            (3) The Secretary shall make a final agency decision on a 
        request by a lessee under this section within 180 days of 
        request.
            (4) Compensation to a lessee to repurchase and cancel a 
        lease under this section shall be the amount that a lessee 
        would receive in a restitution case for a material breach of 
        contract.
            (5) Compensation shall be in the form of a check or 
        electronic transfer from the Department of the Treasury from 
        funds deposited into miscellaneous receipts under the authority 
        of the same Act that authorized the issuance of the lease being 
        repurchased.
            (6) Failure of the Secretary to make a final agency 
        decision on a request by a lessee under this section within 180 
        days of request shall result in a 10 percent increase in the 
        compensation due to the lessee if the lease is ultimately 
        repurchased.
    (c) No Prejudice.--This section shall not be interpreted to 
prejudice any other rights that the lessee would have in the absence of 
this section.

SEC. 119. OFFSITE ENVIRONMENTAL MITIGATION.

    Notwithstanding any other provision of law, any person conducting 
activities under the Mineral Leasing Act (30 U.S.C. 181 et seq.), the 
Geothermal Steam Act (30 U.S.C. 1001 et seq.), the Mineral Leasing Act 
for Acquired Lands (30 U.S.C. 351 et seq.), the Weeks Act (16 U.S.C. 
552 et seq.), the General Mining Act of 1872 (30 U.S.C. 22 et seq.), 
the Materials Act of 1947 (30 U.S.C. 601 et seq.), or the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), may in satisfying 
any mitigation requirements associated with such activities propose 
mitigation measures on a site away from the area impacted and the 
Secretary of the Interior shall accept these proposed measures if the 
Secretary finds that they generally achieve the purposes for which 
mitigation measures appertained.

SEC. 120. MINERALS MANAGEMENT SERVICE.

    The bureau known as the ``Minerals Management Service'' in the 
Department of the Interior shall be known as the ``National Ocean 
Resources and Royalty Service''.

SEC. 121. AUTHORITY TO USE DECOMMISSIONED OFFSHORE OIL AND GAS 
              PLATFORMS AND OTHER FACILITIES FOR ARTIFICIAL REEF, 
              SCIENTIFIC RESEARCH, OR OTHER USES.

    (a) Short Title.--This section may be cited as the ``Rigs to Reefs 
Act of 2008''.
    (b) In General.--The Outer Continental Shelf Lands Act (43 U.S.C. 
1301 et seq.) is amended by inserting after section 9 the following:

``SEC. 10. USE OF DECOMMISSIONED OFFSHORE OIL AND GAS PLATFORMS AND 
              OTHER FACILITIES FOR ARTIFICIAL REEF, SCIENTIFIC 
              RESEARCH, OR OTHER USES.

    ``(a) In General.--The Secretary shall issue regulations under 
which the Secretary may authorize use of an offshore oil and gas 
platform or other facility that is decommissioned from service for oil 
and gas purposes for an artificial reef, scientific research, or any 
other use authorized under section 8(p) or any other applicable Federal 
law.
    ``(b) Transfer Requirements.--The Secretary shall not allow the 
transfer of a decommissioned offshore oil and gas platform or other 
facility to another person unless the Secretary is satisfied that the 
transferee is sufficiently bonded, endowed, or otherwise financially 
able to fulfill its obligations, including but not limited to--
            ``(1) ongoing maintenance of the platform or other 
        facility;
            ``(2) any liability obligations that might arise;
            ``(3) removal of the platform or other facility if 
        determined necessary by the Secretary; and
            ``(4) any other requirements and obligations that the 
        Secretary may deem appropriate by regulation.
    ``(c) Plugging and Abandonment.--The Secretary shall ensure that 
plugging and abandonment of wells is accomplished at an appropriate 
time.
    ``(d) Potential To Petition To Opt-Out of Regulations.--An Adjacent 
State acting through a resolution of its legislature, with concurrence 
of its Governor, may preliminarily petition to opt-out of the 
application of regulations promulgated under this section to platforms 
and other facilities located in the area of its Adjacent Zone within 12 
miles of the coastline. Upon receipt of the preliminary petition, the 
Secretary shall complete an environmental assessment that documents the 
anticipated environmental effects of approving the petition. The 
Secretary shall provide the environmental assessment to the State, 
which then has the choice of no action or confirming its petition by 
further action of its legislature, with the concurrence of its 
Governor. The Secretary is authorized to except such area from the 
application of such regulations, and shall approve any confirmed 
petition.
    ``(e) Limitation on Liability.--A person that had used an offshore 
oil and gas platform or other facility for oil and gas purposes and 
that no longer has any ownership or control of the platform or other 
facility shall not be liable under Federal law for any costs or damages 
arising from such platform or other facility after the date the 
platform or other facility is used for any purpose under subsection 
(a), unless such costs or damages arise from--
            ``(1) use of the platform or other facility by the person 
        for development or production of oil or gas; or
            ``(2) another act or omission of the person.
    ``(f) Other Leasing and Use Not Affected.--This section, and the 
use of any offshore oil and gas platform or other facility for any 
purpose under subsection (a), shall not affect--
            ``(1) the authority of the Secretary to lease any area 
        under this Act; or
            ``(2) any activity otherwise authorized under this Act.''.
    (c) Deadline for Regulations.--The Secretary of the Interior shall 
issue regulations under subsection (b) by not later than 180 days after 
the date of the enactment of this Act.
    (d) Study and Report on Effects of Removal of Platforms.--Not later 
than one year after the date of enactment of this Act, the Secretary of 
the Interior, in consultation with other Federal agencies as the 
Secretary deems advisable, shall study and report to the Congress 
regarding how the removal of offshore oil and gas platforms and other 
facilities from the outer Continental Shelf would affect existing fish 
stocks and coral populations.

SEC. 122. REPEAL OF REQUIREMENT TO CONDUCT COMPREHENSIVE INVENTORY OF 
              OCS OIL AND NATURAL GAS RESOURCES.

    The Energy Policy Act of 2005 (Public Law 109-58) is amended--
            (1) by repealing section 357 (119 Stat. 720; 42 U.S.C. 
        15912); and
            (2) in the table of contents in section 1(b), by striking 
        the item relating to such section 357.

SEC. 123. ONSHORE AND OFFSHORE MINERAL LEASE FEES.

    Except as otherwise provided in this Act, the Department of the 
Interior is prohibited from charging fees applicable to bidding or 
actions on Federal onshore and offshore oil and gas, coal, geothermal, 
and other mineral leases, including transportation of any production 
from such leases, if such fees were not established in final 
regulations prior to the date of issuance of the lease.

SEC. 124. OCS REGIONAL HEADQUARTERS.

    Not later than July 1, 2010, the Secretary of the Interior shall 
establish the headquarters for the Atlantic OCS Region, the 
headquarters for the Gulf of Mexico OCS Region, and the headquarters 
for the Pacific OCS Region within a State bordering the Atlantic OCS 
Region, a State bordering the Gulf of Mexico OCS Region, and a State 
bordering the Pacific OCS Region, respectively, from among the States 
bordering those Regions, that petitions by no later than January 1, 
2010, for leasing, for oil and gas or natural gas, covering at least 40 
percent of the area of its Adjacent Zone within 100 miles of the 
coastline. Such Atlantic and Pacific OCS Regions headquarters shall be 
located within 25 miles of the coastline and each MMS OCS regional 
headquarters shall be the permanent duty station for all Minerals 
Management Service personnel that on a daily basis spend on average 60 
percent or more of their time in performance of duties in support of 
the activities of the respective Region, except that the Minerals 
Management Service may house regional inspection staff in other 
locations. Each OCS Region shall each be led by a Regional Director who 
shall be an employee within the Senior Executive Service.

SEC. 125. LEASES FOR AREAS LOCATED WITHIN 100 MILES OF CALIFORNIA OR 
              FLORIDA.

    (a) Authorization To Cancel and Exchange Certain Existing Oil and 
Gas Leases; Prohibition on Submittal of Exploration Plans for Certain 
Leases Prior to June 30, 2012.--
            (1) Authority.--Within 2 years after the date of enactment 
        of this Act, the lessee of an existing oil and gas lease for an 
        area located completely within 100 miles of the coastline 
        within the California or Florida Adjacent Zones shall have the 
        option, without compensation, of exchanging such lease for a 
        new oil and gas lease having a primary term of 5 years. For the 
        area subject to the new lease, the lessee may select any 
        unleased tract on the outer Continental Shelf that is in an 
        area available for leasing. Further, with the permission of the 
        relevant Governor, such a lessee may convert its existing oil 
        and gas lease into a natural gas lease having a primary term of 
        5 years and covering the same area as the existing lease or 
        another area within the same State's Adjacent Zone within 100 
        miles of the coastline.
            (2) Administrative process.--The Secretary of the Interior 
        shall establish a reasonable administrative process to 
        implement paragraph (1). Exchanges and conversions under 
        subsection (a), including the issuance of new leases, shall not 
        be considered to be major Federal actions for purposes of the 
        National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
        seq.). Further, such actions conducted in accordance with this 
        section are deemed to be in compliance all provisions of the 
        Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).
            (3) Operating restrictions.--A new lease issued in exchange 
        for an existing lease under this section shall be subject to 
        such national defense operating stipulations on the OCS tract 
        covered by the new lease as may be applicable upon issuance.
            (4) Priority.--The Secretary shall give priority in the 
        lease exchange process based on the amount of the original 
        bonus bid paid for the issuance of each lease to be exchanged. 
        The Secretary shall allow leases covering partial tracts to be 
        exchanged for leases covering full tracts conditioned upon 
        payment of additional bonus bids on a per-acre basis as 
        determined by the average per acre of the original bonus bid 
        per acre for the partial tract being exchanged.
            (5) Exploration plans.--Any exploration plan submitted to 
        the Secretary of the Interior after the date of the enactment 
        of this Act and before July 1, 2012, for an oil and gas lease 
        for an area wholly within 100 miles of the coastline within the 
        California Adjacent Zone or Florida Adjacent Zone shall not be 
        treated as received by the Secretary until the earlier of July 
        1, 2012, or the date on which a petition by the Adjacent State 
        for oil and gas leasing covering the area within which is 
        located the area subject to the oil and gas lease was approved.
    (b) Further Lease Cancellation and Exchange Provisions.--
            (1) Cancellation of lease.--As part of the lease exchange 
        process under this section, the Secretary shall cancel a lease 
        that is exchanged under this section.
            (2) Consent of lessees.--All lessees holding an interest in 
        a lease must consent to cancellation of their leasehold 
        interests in order for the lease to be cancelled and exchanged 
        under this section.
            (3) Waiver of rights.--As a prerequisite to the exchange of 
        a lease under this section, the lessee must waive any rights to 
        bring any litigation against the United States related to the 
        transaction.
            (4) Plugging and abandonment.--The plugging and abandonment 
        requirements for any wells located on any lease to be cancelled 
        and exchanged under this section must be complied with by the 
        lessees prior to the cancellation and exchange.
    (c) Area Partially Within 100 Miles of Florida.--An existing oil 
and gas lease for an area located partially within 100 miles of the 
coastline within the Florida Adjacent Zone may only be developed and 
produced using wells drilled from well-head locations at least 100 
miles from the coastline to any bottom-hole location on the area of the 
lease. This subsection shall not apply if Florida has petitioned for 
leasing closer to the coastline than 100 miles.
    (d) Existing Oil and Gas Lease Defined.--In this section the term 
``existing oil and gas lease'' means an oil and gas lease in effect on 
the date of the enactment of this Act.

SEC. 126. COASTAL IMPACT ASSISTANCE.

    Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1356a) is repealed.

SEC. 127. SENSE OF THE CONGRESS TO BUY AND BUILD AMERICAN.

    (a) Buy and Build American.--It is the intention of the Congress 
that this Act, 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 Act by good jobs and careers, as 
well as the establishment of important industrial facilities to support 
expanded access to American resources.
    (b) Safeguard for Extraordinary Ability.--Section 30(a) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1356(a)) is amended in the 
matter preceding paragraph (1) by striking ``regulations which'' and 
inserting ``regulations that shall be supplemental and complimentary 
with and under no circumstances a substitution for the provisions of 
the Constitution and laws of the United States extended to the subsoil 
and seabed of the outer Continental Shelf pursuant to section 4(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''.

SEC. 128. REPEAL OF THE GULF OF MEXICO ENERGY SECURITY ACT OF 2006.

    The Gulf of Mexico Energy Security Act of 2006 is repealed 
effective October 1, 2008.

SEC. 129. REMOVAL OF ADDITIONAL FEE FOR NEW APPLICATIONS FOR PERMITS TO 
              DRILL.

    The second undesignated paragraph of the matter under the heading 
``MANAGEMENT OF LANDS AND RESOURCES'' under the heading ``Bureau of 
Land Management'' of title I of the Department of the Interior, 
Environment, and Related Agencies Appropriations Act, 2008 (Public Law 
110-161; 121 Stat. 2098) is amended by striking ``to be reduced'' and 
all that follows through ``each new application,''.

SEC. 130. CREDIT FOR PRODUCING FUEL FROM NONCONVENTIONAL SOURCES TO 
              APPLY TO GAS PRODUCED ONSHORE FROM FORMATIONS MORE THAN 
              15,000 FEET DEEP.

    (a) In General.--Subparagraph (B) of section 45K(c)(1) of the 
Internal Revenue Code of 1986 is amended by striking ``or'' at the end 
of clause (i), by striking ``and'' at the end of clause (ii) and 
inserting ``or'', and by inserting after clause (ii) the following new 
clause:
                            ``(iii) an onshore well from a formation 
                        more than 15,000 feet deep, and''.
    (b) Eligible Deep Gas Wells.--Section 45K of such Code is amended 
by adding at the end the following new subsection:
    ``(h) Eligible Deep Gas Wells.--In the case of a well producing 
qualified fuel described in subsection (c)(1)(B)(iii)--
            ``(1) for purposes of subsection (e)(1)(A), such well shall 
        be treated as drilled before January 1, 1993, if such well is 
        drilled after the date of the enactment of this subsection, and
            ``(2) subsection (e)(2) shall not apply.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 131. TAX CREDIT FOR CARBON DIOXIDE CAPTURED FROM INDUSTRIAL 
              SOURCES AND USED IN ENHANCED OIL AND NATURAL GAS 
              RECOVERY.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business credits) is 
amended by adding at the end the following new section:

``SEC. 45P. CREDIT FOR CARBON DIOXIDE CAPTURED FROM INDUSTRIAL SOURCES 
              AND USED AS A TERTIARY INJECTANT IN ENHANCED OIL AND 
              NATURAL GAS RECOVERY.

    ``(a) General Rule.--For purposes of section 38, the captured 
carbon dioxide tertiary injectant credit for any taxable year is an 
amount equal to the product of--
            ``(1) the credit amount, and
            ``(2) the qualified carbon dioxide captured from industrial 
        sources and used as a tertiary injectant in qualified enhanced 
        oil and natural gas recovery which is attributable to the 
        taxpayer.
    ``(b) Credit Amount.--For purposes of this section--
            ``(1) In general.--The credit amount is $0.75 per 1,000 
        standard cubic feet.
            ``(2) Inflation adjustment.--In the case of any taxable 
        year beginning in a calendar year after 2007, there shall be 
        substituted for the $0.75 amount under paragraph (1) an amount 
        equal to the product of--
                    ``(A) $0.75, multiplied by
                    ``(B) the inflation adjustment factor for such 
                calendar year determined under section 43(b)(3)(B) for 
                such calendar year, determined by substituting `2006' 
                for `1990'.
    ``(c) Qualified Carbon Dioxide.--For purposes of this section--
            ``(1) In general.--The term `qualified carbon dioxide' 
        means carbon dioxide captured from an anthropogenic source 
        that--
                    ``(A) would otherwise be released into the 
                atmosphere as industrial emission of greenhouse gas,
                    ``(B) is measurable at the source of capture,
                    ``(C) is compressed, treated, and transported via 
                pipeline,
                    ``(D) is sold as a tertiary injectant in qualified 
                enhanced oil and natural gas recovery, and
                    ``(E) is permanently sequestered in geological 
                formations as a result of the enhanced oil and natural 
                gas recovery process.
            ``(2) Anthropogenic source.--An anthropogenic source of 
        carbon dioxide is an industrial source, including any of the 
        following types of plants, and facilities related to such 
        plant--
                    ``(A) a coal and natural gas fired electrical 
                generating power station,
                    ``(B) a natural gas processing and treating plant,
                    ``(C) an ethanol plant,
                    ``(D) a fertilizer plant, and
                    ``(E) a chemical plant.
            ``(3) Definitions.--
                    ``(A) Qualified enhanced oil and natural gas 
                recovery.--The term `qualified enhanced oil and natural 
                gas recovery' has the meaning given such term by 
                section 43(c)(2).
                    ``(B) Tertiary injectant.--The term `tertiary 
                injectant' has the same meaning as when used within 
                section 193(b)(1).
    ``(d) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Only carbon dioxide captured within the united states 
        taken into account.--Sales shall be taken into account under 
        this section only with respect to qualified carbon dioxide of 
        which is within--
                    ``(A) the United States (within the meaning of 
                section 638(1)), or
                    ``(B) a possession of the United States (within the 
                meaning of section 638(2)).
            ``(2) Recycled carbon dioxide.--The term `qualified carbon 
        dioxide' includes the initial deposit of captured carbon 
        dioxide used as a tertiary injectant. Such term does not 
        include carbon dioxide that is re-captured, recycled, and re-
        injected as part of the enhanced oil and natural gas recovery 
        process.
            ``(3) Credit attributable to taxpayer.--Any credit under 
        this section shall be attributable to the person that captures, 
        treats, compresses, transports and sells the carbon dioxide for 
        use as a tertiary injectant in enhanced oil and natural gas 
        recovery, except to the extent provided in regulations 
        prescribed by the Secretary.''.
    (b) Conforming Amendment.--Section 38(b) of such Code (relating to 
general business credit), as amended by section 302, is amended by 
striking ``plus'' at the end of paragraph (31), by striking the period 
at the end of paragraph (32) and inserting ``, plus'', and by adding at 
the end of following new paragraph:
            ``(33) the captured carbon dioxide tertiary injectant 
        credit determined under section 45P(a).''.
    (c) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of such Code (relating to other 
credits) is amended by adding at the end the following new section:

``Sec. 45P. Credit for carbon dioxide captured from industrial sources 
                            and used as a tertiary injectant in 
                            enhanced oil and natural gas recovery.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

   TITLE II--OIL AND GAS LEASING PROGRAM FOR COASTAL PLAIN OF ALASKA

SEC. 201. SHORT TITLE.

    This title may be cited as the ``American Energy Independence and 
Price Reduction Act''.

SEC. 202. DEFINITIONS.

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

SEC. 203. 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 Act 
        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 Act 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 Act 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 Act 
        before the conduct of the first lease sale.
            (3) Compliance with nepa for other actions.--Before 
        conducting the first lease sale under this Act, the Secretary 
        shall prepare an environmental impact statement under the 
        National Environmental Policy Act of 1969 with respect to the 
        actions authorized by this Act 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 
        Act 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 Act.
    (d) Relationship to State and Local Authority.--Nothing in this Act 
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 Act.
    (g) Regulations.--
            (1) In general.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out this Act, 
        including rules and regulations relating to protection of the 
        fish and wildlife, their habitat, subsistence resources, and 
        environment of the Coastal Plain, by no later than 15 months 
        after the date of enactment of this Act.
            (2) Revision of regulations.--The Secretary shall 
        periodically review and, if appropriate, revise the rules and 
        regulations issued under subsection (a) to reflect any 
        significant biological, environmental, or engineering data that 
        come to the Secretary's attention.

SEC. 204. LEASE SALES.

    (a) In General.--Lands may be leased pursuant to this Act 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 Act shall be by 
sealed competitive cash bonus bids.
    (d) Acreage Minimum in First Sale.--In the first lease sale under 
this Act, 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 Act within 22 
        months after the date of the enactment of this Act;
            (2) evaluate the bids in such sale and issue leases 
        resulting from such sale, within 90 days after the date of the 
        completion of such sale; and
            (3) conduct additional sales so long as sufficient interest 
        in development exists to warrant, in the Secretary's judgment, 
        the conduct of such sales.

SEC. 205. 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 4 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 Act 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. 206. LEASE TERMS AND CONDITIONS.

    (a) In General.--An oil or gas lease issued pursuant to this Act 
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 Act 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 3(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 Act and the regulations issued under this Act.
    (b) Project Labor Agreements.--The Secretary, as a term and 
condition of each lease under this Act 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 Act 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. 207. 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 3, administer the provisions of this Act 
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 Act, 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 Act are 
conducted in a manner consistent with the purposes and environmental 
requirements of this Act.
    (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 Act 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 Act, requiring 
        the removal from the Coastal Plain of all oil and gas 
        development and production facilities, structures, and 
        equipment upon completion of oil and gas production operations, 
        except that the Secretary may exempt from the requirements of 
        this paragraph those facilities, structures, or equipment that 
        the Secretary determines would assist in the management of the 
        Arctic National Wildlife Refuge and that are donated to the 
        United States for that purpose.
            (7) Appropriate prohibitions or restrictions on access by 
        all modes of transportation.
            (8) Appropriate prohibitions or restrictions on sand and 
        gravel extraction.
            (9) Consolidation of facility siting.
            (10) Appropriate prohibitions or restrictions on use of 
        explosives.
            (11) Avoidance, to the extent practicable, of springs, 
        streams, and river system; the protection of natural surface 
        drainage patterns, wetlands, and riparian habitats; and the 
        regulation of methods or techniques for developing or 
        transporting adequate supplies of water for exploratory 
        drilling.
            (12) Avoidance or minimization of air traffic-related 
        disturbance to fish and wildlife.
            (13) Treatment and disposal of hazardous and toxic wastes, 
        solid wastes, reserve pit fluids, drilling muds and cuttings, 
        and domestic wastewater, including an annual waste management 
        report, a hazardous materials tracking system, and a 
        prohibition on chlorinated solvents, in accordance with 
        applicable Federal and State environmental law.
            (14) Fuel storage and oil spill contingency planning.
            (15) Research, monitoring, and reporting requirements.
            (16) Field crew environmental briefings.
            (17) Avoidance of significant adverse effects upon 
        subsistence hunting, fishing, and trapping by subsistence 
        users.
            (18) Compliance with applicable air and water quality 
        standards.
            (19) Appropriate seasonal and safety zone designations 
        around well sites, within which subsistence hunting and 
        trapping shall be limited.
            (20) Reasonable stipulations for protection of cultural and 
        archeological resources.
            (21) All other protective environmental stipulations, 
        restrictions, terms, and conditions deemed necessary by the 
        Secretary.
    (e) Considerations.--In preparing and promulgating regulations, 
lease terms, conditions, restrictions, prohibitions, and stipulations 
under this section, the Secretary shall consider the following:
            (1) The stipulations and conditions that govern the 
        National Petroleum Reserve-Alaska leasing program, as set forth 
        in the 1999 Northeast National Petroleum Reserve-Alaska Final 
        Integrated Activity Plan/Environmental Impact Statement.
            (2) The environmental protection standards that governed 
        the initial Coastal Plain seismic exploration program under 
        parts 37.31 to 37.33 of title 50, Code of Federal Regulations.
            (3) The land use stipulations for exploratory drilling on 
        the KIC-ASRC private lands that are set forth in Appendix 2 of 
        the August 9, 1983, agreement between Arctic Slope Regional 
        Corporation and the United States.
    (f) Facility Consolidation Planning.--
            (1) In general.--The Secretary shall, after providing for 
        public notice and comment, prepare and update periodically a 
        plan to govern, guide, and direct the siting and construction 
        of facilities for the exploration, development, production, and 
        transportation of Coastal Plain oil and gas resources.
            (2) Objectives.--The plan shall have the following 
        objectives:
                    (A) Avoiding unnecessary duplication of facilities 
                and activities.
                    (B) Encouraging consolidation of common facilities 
                and activities.
                    (C) Locating or confining facilities and activities 
                to areas that will minimize impact on fish and 
                wildlife, their habitat, and the environment.
                    (D) Utilizing existing facilities wherever 
                practicable.
                    (E) Enhancing compatibility between wildlife values 
                and development activities.
    (g) Access to Public Lands.--The Secretary shall--
            (1) manage public lands in the Coastal Plain subject to 
        subsections (a) and (b) of section 811 of the Alaska National 
        Interest Lands Conservation Act (16 U.S.C. 3121); and
            (2) ensure that local residents shall have reasonable 
        access to public lands in the Coastal Plain for traditional 
        uses.

SEC. 208. EXPEDITED JUDICIAL REVIEW.

    (a) Filing of Complaint.--
            (1) Deadline.--Subject to paragraph (2), any complaint 
        seeking judicial review of any provision of this Act or any 
        action of the Secretary under this Act 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 Act or any action of the Secretary under this 
        Act 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 
        Act, including the environmental analysis thereof, shall be 
        limited to whether the Secretary has complied with the terms of 
        this Act 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 Act 
        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. 209. 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 Act--
            (1) 50 percent shall be paid to the State of Alaska; and
            (2) except as provided in section 12(d), the balance shall 
        be transferred to the American Energy Trust Fund established by 
        this Act.
    (b) Payments to Alaska.--Payments to the State of Alaska under this 
section shall be made semiannually.

SEC. 210. 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 3(g) provisions granting rights-of-way and easements described 
in subsection (a) of this section.

SEC. 211. 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. 212. 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 Act.
            (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 Act, 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 Act.
            (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.

                   TITLE III--OIL SHALE AND TAR SANDS

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Oil Shale Opportunity Act of 
2008''.

SEC. 302. REPEAL OF LIMITATION ON USE OF FUNDS FOR REGULATIONS 
              REGARDING A COMMERCIAL LEASING PROGRAM FOR OIL SHALE 
              RESOURCES ON PUBLIC LANDS.

    Section 433 of the Department of the Interior, Environment, and 
Related Agencies Appropriations Act, 2008 (Division F of Public Law 
110-161; 121 Stat. 2152) is repealed.

SEC. 303. PERMANENT FUNDING FOR PILT AND REFUGE REVENUE SHARING.

    (a) Payments in Lieu of Taxes.--Section 6906 of title 31, United 
States Code, is amended to read as follows:

``SEC. 6906. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated out of the American Energy 
Trust Fund created by this Act such sums as may be necessary to the 
Secretary of the Interior to carry out this chapter. Beginning in 
fiscal year 2013 and each fiscal year thereafter, amounts authorized 
under this chapter shall be made available to the Secretary of the 
Interior without further appropriation, for obligation or expenditure 
in accordance with this chapter.''.
    (b) Refuge Revenue Sharing.--Section 401(d) of the Act of June 15, 
1935 (16 U.S.C. 715s(d)), relating to refuge revenue sharing, is 
amended by adding at the end the following: ``Beginning in fiscal year 
2012 and each fiscal year thereafter, such amounts shall be made 
available to the Secretary without further appropriation, out of the 
American Energy Trust Fund created by this Act, as may be necessary to 
carry out this chapter, for obligation or expenditure in accordance 
with this section.''.

SEC. 304. REAUTHORIZATION OF THE SECURE RURAL SCHOOLS AND COMMUNITY 
              SELF-DETERMINATION ACT OF 2000.

    The Secure Rural Schools and Community Self-Determination Act of 
2000 (Public Law 106-393; 16 U.S.C. 500 note) is amended--
            (1) in sections 208 and 303, by striking ``2013'' both 
        places it appears and inserting ``2018''; and
            (2) in sections 101(a), 102(b)(2), 103(b)(1), 203(a)(1), 
        207(a), 208, 303, and 401, by striking ``2006'' each place it 
        appears and inserting ``2018''.

SEC. 305. OIL SHALE AND TAR SANDS AMENDMENTS.

    (a) Repeal of Requirement to Establish Payments.--Section 369(o) of 
the Energy Policy Act of 2005 (Public Law 109-58; 119 Stat. 728; 42 
U.S.C. 15927) is repealed.
    (b) Treatment of Revenues.--Section 21 of the Mineral Leasing Act 
(30 U.S.C. 241) is amended by adding at the end the following:
    ``(e) Revenues.--
            ``(1) In general.--Notwithstanding the provisions of 
        section 35, all revenues received from and under an oil shale 
        or tar sands lease shall be disposed of as provided in this 
        subsection.
            ``(2) Royalty rates for commercial leases.--
                    ``(A) Royalty rates.--The Secretary shall model the 
                royalty schedule for oil shale and tar sands leases 
                based on the royalty program currently in effect for 
                the production of synthetic crude oil from oil sands in 
                the Province of Alberta, Canada.
                    ``(B) Reduction.--The Secretary shall reduce any 
                royalty otherwise required to be paid under 
                subparagraph (A) under any oil shale or tar sands lease 
                on a sliding scale based upon market price, with a 10 
                percent reduction if the average futures price of NYMEX 
                Light Sweet Crude, or a similar index, drops, for the 
                previous quarter year, below $50 (in January 1, 2008, 
                dollars), and an 80 percent reduction if the average 
                price drops below $30 (in January 1, 2008, dollars) for 
                the quarter previous to the one in which the production 
                is sold.
            ``(3) Disposition of revenues.--
                    ``(A) Deposit.--The Secretary shall deposit into a 
                separate account in the Treasury all revenues derived 
                from any oil shale or tar sands lease.
                    ``(B) Allocations to states and local political 
                subdivisions.--The Secretary shall allocate 50 percent 
                of the revenues deposited into the account established 
                under subparagraph (A) to the State within the 
                boundaries of which the leased lands are located, with 
                a portion of that to be paid directly by the Secretary 
                to the State's local political subdivisions as provided 
                in this paragraph.
                    ``(C) Transmission of allocations.--
                            ``(i) In general.--Not later than the last 
                        business day of the month after the month in 
                        which the revenues were received, the Secretary 
                        shall transmit--
                                    ``(I) to each State two-thirds of 
                                such State's allocations under 
                                subparagraph (B), and in accordance 
                                with clauses (ii) and (iii) to certain 
                                county-equivalent and municipal 
                                political subdivisions of such State a 
                                total of one-third of such States 
                                allocations under subparagraph (B), 
                                together with all accrued interest 
                                thereon; and
                                    ``(II) the remaining balance of 
                                such revenues shall be deposited into 
                                the American Energy Trust Fund created 
                                by this Act.
                            ``(ii) Allocations to certain county-
                        equivalent political subdivisions.--The 
                        Secretary shall under clause (i)(I) make 
                        equitable allocations of the revenues to 
                        county-equivalent political subdivisions that 
                        the Secretary determines are closely associated 
                        with the leasing and production of oil shale 
                        and tar sands, under a formula that the 
                        Secretary shall determine by regulation.
                            ``(iii) Allocations to municipal political 
                        subdivisions.--The initial allocation to each 
                        county-equivalent political subdivision under 
                        clause (ii) shall be further allocated to the 
                        county-equivalent political subdivision and any 
                        municipal political subdivisions located 
                        partially or wholly within the boundaries of 
                        the county-equivalent political subdivision on 
                        an equitable basis under a formula that the 
                        Secretary shall determine by regulation.
                    ``(D) Investment of deposits.--The deposits in the 
                Treasury account established under this section shall 
                be invested by the Secretary of the Treasury in 
                securities backed by the full faith and credit of the 
                United States having maturities suitable to the needs 
                of the account and yielding the highest reasonably 
                available interest rates as determined by the Secretary 
                of the Treasury.
                    ``(E) Use of funds.--A recipient of funds under 
                this subsection may use the funds for any lawful 
                purpose as determined by State law. Funds allocated 
                under this subsection to States and local political 
                subdivisions may be used as matching funds for other 
                Federal programs without limitation. Funds allocated to 
                local political subdivisions under this subsection may 
                not be used in calculation of payments to such local 
                political subdivisions under programs for payments in 
                lieu of taxes or other similar programs.
                    ``(F) No accounting required.--No recipient of 
                funds under this subsection shall be required to 
                account to the Federal Government for the expenditure 
                of such funds, except as otherwise may be required by 
                law.
            ``(4) Definitions.--In this subsection:
                    ``(A) County-equivalent political subdivision.--The 
                term `county-equivalent political subdivision' means a 
                political jurisdiction immediately below the level of 
                State government, including a county, parish, borough 
                in Alaska, independent municipality not part of a 
                county, parish, or borough in Alaska, or other 
                equivalent subdivision of a State.
                    ``(B) Municipal political subdivision.--The term 
                `municipal political subdivision' means a municipality 
                located within and part of a county, parish, borough in 
                Alaska, or other equivalent subdivision of a State.''.

SEC. 306. REPEAL.

    Section 526 of the Energy Independence and Security Act of 2007 (42 
U.S.C. 17142) is repealed.

                             TITLE IV--COAL

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Coal Liquid Fuel Act''.

SEC. 402. STANDBY LOANS FOR QUALIFYING COAL-TO-LIQUIDS PROJECTS.

    Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) is 
amended by adding at the end the following new subsection:
    ``(k) Standby Loans for Qualifying CTL Projects.--
            ``(1) Definitions.--For purposes of this subsection:
                    ``(A) Cap price.--The term `cap price' means a 
                market price specified in the standby loan agreement 
                above which the project is required to make payments to 
                the United States.
                    ``(B) Full term.--The term `full term' means the 
                full term of a standby loan agreement, as specified in 
                the agreement, which shall not exceed the lesser of 30 
                years or 90 percent of the projected useful life of the 
                project (as determined by the Secretary).
                    ``(C) Market price.--The term `market price' means 
                the average quarterly price of a petroleum price index 
                specified in the standby loan agreement.
                    ``(D) Minimum price.--The term `minimum price' 
                means a market price specified in the standby loan 
                agreement below which the United States is obligated to 
                make disbursements to the project.
                    ``(E) Output.--The term `output' means some or all 
                of the liquid or gaseous transportation fuels produced 
                from the project, as specified in the loan agreement.
                    ``(F) Primary term.--The term `primary term' means 
                the initial term of a standby loan agreement, as 
                specified in the agreement, which shall not exceed the 
                lesser of 20 years or 75 percent of the projected 
                useful life of the project (as determined by the 
                Secretary).
                    ``(G) Qualifying ctl project.--The term `qualifying 
                CTL project' means--
                            ``(i) a commercial-scale project that 
                        converts coal to one or more liquid or gaseous 
                        transportation fuels; or
                            ``(ii) not more than one project at a 
                        facility that converts petroleum refinery waste 
                        products, including petroleum coke, into one or 
                        more liquids or gaseous transportation fuels,
                that demonstrates the capture, and sequestration or 
                disposal or use of, the carbon dioxide produced in the 
                conversion process, and that, on the basis of a carbon 
                dioxide sequestration plan prepared by the applicant, 
                is certified by the Administrator of the Environmental 
                Protection Agency, in consultation with the Secretary, 
                as producing fuel with life cycle carbon dioxide 
                emissions at or below the average life cycle carbon 
                dioxide emissions for the same type of fuel produced at 
                traditional petroleum based facilities with similar 
                annual capacities.
                    ``(H) Standby loan agreement.--The term `standby 
                loan agreement' means a loan agreement entered into 
                under paragraph (2).
            ``(2) Standby loans.--
                    ``(A) Loan authority.--The Secretary may enter into 
                standby loan agreements with not more than six 
                qualifying CTL projects, at least one of which shall be 
                a project jointly or in part owned by two or more small 
                coal producers. Such an agreement--
                            ``(i) shall provide that the Secretary will 
                        make a direct loan (within the meaning of 
                        section 502(1) of the Federal Credit Reform Act 
                        of 1990) to the qualifying CTL project; and
                            ``(ii) shall set a cap price and a minimum 
                        price for the primary term of the agreement.
                    ``(B) Loan disbursements.--Such a loan shall be 
                disbursed during the primary term of such agreement 
                whenever the market price falls below the minimum 
                price. The amount of such disbursements in any calendar 
                quarter shall be equal to the excess of the minimum 
                price over the market price, times the output of the 
                project (but not more than a total level of 
                disbursements specified in the agreement).
                    ``(C) Loan repayments.--The Secretary shall 
                establish terms and conditions, including interest 
                rates and amortization schedules, for the repayment of 
                such loan within the full term of the agreement, 
                subject to the following limitations:
                            ``(i) If in any calendar quarter during the 
                        primary term of the agreement the market price 
                        is less than the cap price, the project may 
                        elect to defer some or all of its repayment 
                        obligations due in that quarter. Any unpaid 
                        obligations will continue to accrue interest.
                            ``(ii) If in any calendar quarter during 
                        the primary term of the agreement the market 
                        price is greater than the cap price, the 
                        project shall meet its scheduled repayment 
                        obligation plus deferred repayment obligations, 
                        but shall not be required to pay in that 
                        quarter an amount that is more than the excess 
                        of the market price over the cap price, times 
                        the output of the project.
                            ``(iii) At the end of the primary term of 
                        the agreement, the cumulative amount of any 
                        deferred repayment obligations, together with 
                        accrued interest, shall be amortized (with 
                        interest) over the remainder of the full term 
                        of the agreement.
            ``(3) Profit-sharing.--The Secretary is authorized to enter 
        into a profit-sharing agreement with the project at the time 
        the standby loan agreement is executed. Under such an 
        agreement, if the market price exceeds the cap price in a 
        calendar quarter, a profit-sharing payment shall be made for 
        that quarter, in an amount equal to--
                    ``(A) the excess of the market price over the cap 
                price, times the output of the project; less
                    ``(B) any loan repayments made for the calendar 
                quarter.
            ``(4) Compliance with federal credit reform act.--
                    ``(A) Upfront payment of cost of loan.--No standby 
                loan agreement may be entered into under this 
                subsection unless the project makes a payment to the 
                United States that the Office of Management and Budget 
                determines is equal to the cost of such loan 
                (determined under 502(5)(B) of the Federal Credit 
                Reform Act of 1990). Such payment shall be made at the 
                time the standby loan agreement is executed.
                    ``(B) Minimization of risk to the government.--In 
                making the determination of the cost of the loan for 
                purposes of setting the payment for a standby loan 
                under subparagraph (A), the Secretary and the Office of 
                Management and Budget shall take into consideration the 
                extent to which the minimum price and the cap price 
                reflect historical patterns of volatility in actual oil 
                prices relative to projections of future oil prices, 
                based upon publicly available data from the Energy 
                Information Administration, and employing statistical 
                methods and analyses that are appropriate for the 
                analysis of volatility in energy prices.
                    ``(C) Treatment of payments.--The value to the 
                United States of a payment under subparagraph (A) and 
                any profit-sharing payments under paragraph (3) shall 
                be taken into account for purposes of section 
                502(5)(B)(iii) of the Federal Credit Reform Act of 1990 
                in determining the cost to the Federal Government of a 
                standby loan made under this subsection. If a standby 
                loan has no cost to the Federal Government, the 
                requirements of section 504(b) of such Act shall be 
                deemed to be satisfied.
            ``(5) Other provisions.--
                    ``(A) No double benefit.--A project receiving a 
                loan under this subsection may not, during the primary 
                term of the loan agreement, receive a Federal loan 
                guarantee under subsection (a) of this section, or 
                under other laws.
                    ``(B) Subrogation, etc.--Subsections (g)(2) 
                (relating to subrogation), (h) (relating to fees), and 
                (j) (relating to full faith and credit) shall apply to 
                standby loans under this subsection to the same extent 
                they apply to loan guarantees.''.

SEC. 403. GOVERNMENT AUCTION OF LONG TERM PUT OPTION CONTRACTS ON COAL-
              TO-LIQUID FUEL PRODUCED BY QUALIFIED COAL-TO-LIQUID 
              FACILITIES.

    (a) In General.--The Secretary shall, from time to time, auction to 
the public coal-to-liquid fuel put option contracts having expiration 
dates of 5 years, 10 years, 15 years, or 20 years.
    (b) Consultation With Secretary of Energy.--The Secretary shall 
consult with the Secretary of Energy regarding--
            (1) the frequency of the auctions;
            (2) the strike prices specified in the contracts;
            (3) the number of contracts to be auctioned with a given 
        strike price and expiration date; and
            (4) the capacity of existing or planned facilities to 
        produce coal-to-liquid fuel.
    (c) Definitions.--In this section:
            (1) Coal-to-liquid fuel.--The term ``coal-to-liquid fuel'' 
        means any transportation-grade liquid fuel derived primarily 
        from coal (including peat) and produced at a qualified coal-to-
        liquid facility.
            (2) Coal-to-liquid put option contract.--The term ``coal-
        to-liquid put option contract'' means a contract, written by 
        the Secretary, which--
                    (A) gives the holder the right (but not the 
                obligation) to sell to the Government of the United 
                States a certain quantity of a specific type of coal-
                to-liquid fuel produced by a qualified coal-to-liquid 
                facility specified in the contract, at a strike price 
                specified in the contract, on or before an expiration 
                date specified in the contract; and
                    (B) is transferable by the holder to any other 
                entity.
            (3) Qualified coal-to-liquid facility.--The term 
        ``qualified coal-to-liquid facility'' means a manufacturing 
        facility that has the capacity to produce at least 10,000 
        barrels per day of transportation grade liquid fuels from a 
        feedstock that is primarily domestic coal (including peat and 
        any property which allows for the capture, transportation, or 
        sequestration of by-products resulting from such process, 
        including carbon emissions).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (5) Strike price.--The term ``strike price'' means, with 
        respect to a put option contract, the price at which the holder 
        of the contract has the right to sell the fuel which is the 
        subject of the contract.
    (d) Regulations.--The Secretary shall prescribe such regulations as 
may be necessary to carry out this section.
    (e) Effective Date.--This section shall take effect 1 year after 
the date of the enactment of this Act.

                            TITLE V--NUCLEAR

SEC. 501. USE OF FUNDS FOR RECYCLING.

    Section 302 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 
10222) is amended--
            (1) in subsection (d), by striking ``The Secretary may'' 
        and inserting ``Except as provided in subsection (f), the 
        Secretary may''; and
            (2) by adding at the end the following new subsection:
    ``(f) Recycling.--
            ``(1) In general.--Amounts in the Waste Fund may be used by 
        the Secretary of Energy to make grants to or enter into long-
        term contracts with private sector entities for the recycling 
        of spent nuclear fuel.
            ``(2) Competitive selection.--Grants and contracts 
        authorized under paragraph (1) shall be awarded on the basis of 
        a competitive bidding process that--
                    ``(A) maximizes the competitive efficiency of the 
                projects funded;
                    ``(B) best serves the goal of reducing the amount 
                of waste requiring disposal under this Act; and
                    ``(C) ensures adequate protection against the 
                proliferation of nuclear materials that could be used 
                in the manufacture of nuclear weapons.''.

SEC. 502. RULEMAKING FOR LICENSING OF SPENT NUCLEAR FUEL RECYCLING 
              FACILITIES.

    (a) Requirement.--The Nuclear Regulatory Commission shall, as 
expeditiously as possible, but in no event later than 2 years after the 
date of enactment of this Act, complete a rulemaking establishing a 
process for the licensing by the Nuclear Regulatory Commission, under 
the Atomic Energy Act of 1954, of facilities for the recycling of spent 
nuclear fuel.
    (b) Funding.--Amounts in the Nuclear Waste Fund established under 
section 302 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222) 
shall be made available to the Nuclear Regulatory Commission to cover 
the costs of carrying out subsection (a) of this section.

SEC. 503. NUCLEAR WASTE FUND BUDGET STATUS.

    Section 302(e) of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 
10222(e)) is amended by adding at the end the following new paragraph:
            ``(7) The receipts and disbursements of the Waste Fund 
        shall not be counted as new budget authority, outlays, 
        receipts, or deficits or surplus for purposes of--
                    ``(A) the budget of the United States Government as 
                submitted by the President;
                    ``(B) the congressional budget; or
                    ``(C) the Balanced Budget and Emergency Deficit 
                Control Act of 1985.''.

SEC. 504. WASTE CONFIDENCE.

    The Nuclear Regulatory Commission may not deny an application for a 
license, permit, or other authorization under the Atomic Energy Act of 
1954 on the grounds that sufficient capacity does not exist, or will 
not become available on a timely basis, for disposal of spent nuclear 
fuel or high-level radioactive waste from the facility for which the 
license, permit, or other authorization is sought.

SEC. 505. ASME NUCLEAR CERTIFICATION CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
(relating to business related credits) is amended by adding at the end 
the following new section:

``SEC. 45O. ASME NUCLEAR CERTIFICATION CREDIT.

    ``(a) In General.--For purposes of section 38, the ASME Nuclear 
Certification credit determined under this section for any taxable year 
is an amount equal to 15 percent of the qualified nuclear expenditures 
paid or incurred by the taxpayer.
    ``(b) Qualified Nuclear Expenditures.--For purposes of this 
section, the term `qualified nuclear expenditures' means any 
expenditure related to--
            ``(1) obtaining a certification under the American Society 
        of Mechanical Engineers Nuclear Component Certification 
        program, or
            ``(2) increasing the taxpayer's capacity to construct, 
        fabricate, assemble, or install components--
                    ``(A) for any facility which uses nuclear energy to 
                produce electricity, and
                    ``(B) with respect to the construction, 
                fabrication, assembly, or installation of which the 
                taxpayer is certified under such program.
    ``(c) Timing of Credit.--The credit allowed under subsection (a) 
for any expenditures shall be allowed--
            ``(1) in the case of a qualified nuclear expenditure 
        described in subsection (b)(1), for the taxable year of such 
        certification, and
            ``(2) in the case of any other qualified nuclear 
        expenditure, for the taxable year in which such expenditure is 
        paid or incurred.
    ``(d) Special Rules.--
            ``(1) Basis adjustment.--For purposes of this subtitle, if 
        a credit is allowed under this section for an expenditure, the 
        increase in basis which would result (but for this subsection) 
        for such expenditure shall be reduced by the amount of the 
        credit allowed under this section.
            ``(2) Denial of double benefit.--No deduction shall be 
        allowed under this chapter for any amount taken into account in 
        determining the credit under this section.
    ``(e) Termination.--This section shall not apply to any 
expenditures paid or incurred in taxable years beginning after December 
31, 2019.''.
    (b) Conforming Amendments.--(1) Subsection (b) of section 38 is 
amended by striking ``plus'' at the end of paragraph (30), by striking 
the period at the end of paragraph (31) and inserting ``, plus'', and 
by adding at the end the following new paragraph:
            ``(32) the ASME Nuclear Certification credit determined 
        under section 45O(a).''.
    (2) Subsection (a) of section 1016 (relating to adjustments to 
basis) is amended by striking ``and'' at the end of paragraph (36), by 
striking the period at the end of paragraph (37) and inserting ``, 
and'', and by adding at the end the following new paragraph:
            ``(38) to the extent provided in section 45O(e)(1).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenditures paid or incurred in taxable years beginning after 
December 31, 2007.

                    TITLE VI--CLEAN RENEWABLE ENERGY

SEC. 601. TRUST FUND.

    (a) Creation of Trust Fund.--Subchapter A of chapter 98 of the 
Internal Revenue Code of 1986 is amended by inserting at the end the 
following new section:

``SEC. 9511. AMERICAN ENERGY TRUST FUND.

    ``(a) Establishment of Trust Fund.--There is established in the 
Treasury of the United States a trust fund to be known as the `American 
Energy Trust Fund', consisting of such amounts as may be appropriated 
or credited to the American Energy Trust Fund as provided in this 
section.
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the American Energy Trust Fund all revenues generated by titles I, II, 
and III of the Americans for American Energy Act of 2008 not reserved 
for other purposes.
    ``(c) Expenditures From American-Made Energy Trust Fund.--
            ``(1) In general.--As provided by appropriation Acts, 
        amounts in the American Energy Trust Fund shall be available 
        for transfer to the general fund of the Treasury to offset any 
        reduction in revenue to the United States that results from any 
        provision of the Americans for American Energy Act of 2008.
            ``(2) Funding for renewable energy provisions in the energy 
        policy act of 2005.--Amounts in the American Energy Trust fund 
        shall be available without further appropriation to carry out 
        specified provisions of the Energy Policy Act of 2005 (Public 
        Law 109-58; in this section referred to as `EPAct2005'), as 
        follows:
                    ``(A) Section 210.
                    ``(B) Section 242.
                    ``(C) Section 369.
                    ``(D) Section 401.
                    ``(E) Section 812.
                    ``(F) Section 931.
                    ``(G) Section 942.
                    ``(H) Section 968.
                    ``(I) Title XVII.
            ``(3) Funding for provisions of energy independence and 
        security act of 2007.--Amounts in the American Energy Trust 
        Fund shall be available without further appropriation to carry 
        out specified provisions of the Energy Independence and 
        Security Act of 2007 (Public Law 110-140; in this section 
        referred to as `EISAct2007'), as follows:
                    ``(A) Section 207.
                    ``(B) Section 607.
                    ``(C) Subtitle B.
                    ``(D) Subtitle C.
                    ``(E) Section 641.
                    ``(F) Subtitle A.
            ``(4) Funding for provisions of americans for american 
        energy act of 2008.--Amounts in the American Energy Trust Fund 
        shall be made available without further appropriation to carry 
        out specified provisions of the Americans for American Energy 
        Act of 2008 as follows:
                    ``(A) Title I, section 15.
                    ``(B) Title V, section 4.
                    ``(C) Title XI.
                    ``(D) Title XII.
            ``(5) Limitation on availability to carry out provisions of 
        the energy policy act of 2005, the energy independence and 
        security act of 2007, and the americans for american energy act 
        of 2008.--Notwithstanding paragraph (1), amounts in the 
        American-Made Energy Trust Fund shall be available to carry out 
        the provisions referred to in paragraphs (2), (3), and (4) only 
        with respect to so much of such amount as the Secretary 
        certifies, in the estimation of the Secretary, is in excess 
        (taking into account the Secretary's estimate of future 
        appropriations and credits to the American Energy Trust Fund) 
        of the amounts necessary to make all future transfers described 
        in paragraph (1).
            ``(6) Apportionment of excess amount.--Notwithstanding 
        paragraph (1), the excess amount certified by the Secretary 
        under paragraph (1) shall be apportioned to the provisions 
        referred to in paragraphs (2), (3), and (4) according to the 
        percentages as follows:
                    ``(A) Section 210, 3 percent.
                    ``(B) Section 242, 2 percent.
                    ``(C) Section 369, 3 percent.
                    ``(D) Section 401, 3 percent.
                    ``(E) Section 812, 2 percent.
                    ``(F) Section 931, 10 percent.
                    ``(G) Section 942, 1.5 percent.
                    ``(H) Section 968, 1,5 percent.
                    ``(I) Title XVII, 4 percent.
                    ``(J) Section 207, 1 percent.
                    ``(K) Section 607, 2 percent.
                    ``(L) Subtitle B, 4 percent.
                    ``(M) Subtitle C, 2 percent.
                    ``(N) Section 641, 2 percent.
                    ``(O) Subtitle A, 2 percent.
                    ``(P) Title 1, section 15, 5 percent.
                    ``(Q) Title V, section 4, 7 percent.
                    ``(R) Title XI, 5 percent.
                    ``(S) Title XII, 40 percent.
            ``(7) Funding limitation.--Funds distributed in paragraph 
        (6) shall not exceed maximum authorization levels for 
        individual programs. Excess funds above authorized levels, with 
        exception of paragraph (6)(S), shall be deposited in the 
        general treasury.
            ``(8) Maximum time limitation.--Notwithstanding paragraph 
        (1), funding allocations made available by this Act shall 
        require reauthorization at the end of fiscal year 2018 in order 
        to evaluate advances in technology and national priorities.
            ``(9) Report to congress.--Any certification made under 
        paragraph (1) shall be made in a written report to the Congress 
        and shall include the relevant estimates of the Secretary of 
        future transfers, appropriations, and credits.''.
    (b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of such Code is amended by inserting at the end the 
following new item:

``Sec. 9511. American Energy Trust Fund.''.
    (c) Effective Date.--The amendments made by this section shall 
apply after the date of the enactment of this Act.

SEC. 602. DEVELOPING SOLAR ENERGY ON FEDERAL LANDS.

    (a) In General.--The Secretary of the Interior shall carry out in 
accordance with this section a program for the leasing of Federal lands 
for the advancement, development, assessment, installation, and 
operation of commercial photovoltaic and concentrating solar power 
energy systems.
    (b) Identification of Lands for Leasing.--
            (1) Lands selection.--The Secretary of the Interior, acting 
        through the Director of the Bureau of Land Management and in 
        consultation with the Secretary of Energy, shall--
                    (A) identify lease sites comprising a total of 
                6,400,000 acres of Federal lands under the jurisdiction 
                of the Bureau of Land Management in the States of 
                Arizona, California, New Mexico, Nevada, and Utah, that 
                are suitable and feasible for the installation and 
                operation of photovoltaic and concentrating solar power 
                energy systems, subject to valid existing rights; and
                    (B) incorporate solar energy development into the 
                relevant agency land use and resource management plans 
                or equivalent plans for the lands identified under 
                subparagraph (A).
            (2) Minimum and maximum acreage of sites.--Each individual 
        lease site identified under paragraph (1)(A) shall be a minimum 
        of 1280 acres and shall not exceed 12,800 acres.
            (3) Lands released for leasing.--The Secretary shall 
        release for leasing under this section lease sites identified 
        under paragraph (1), in acreages that meet the following annual 
        milestones:
                    (A) By 2010, 79,012 acres.
                    (B) By 2011, 316,049 acres.
                    (C) By 2012, 711,111 acres.
                    (D) By 2013, 1,300,000 acres.
                    (E) By 2014, 2,000,000 acres.
                    (F) By 2015, 2,800,000 acres.
                    (G) By 2016, 3,700,000 acres.
                    (H) By 2017, 4,650,000 acres.
                    (I) By 2018, 5,800,000 acres.
                    (J) By 2019, 6,400,000 acres.
            (4) Lands not included.--The following Federal lands shall 
        not be included within a solar lands leasing program:
                    (A) Components of the National Landscape 
                Conservation System.
                    (B) Wilderness and Wilderness Study Areas.
                    (C) Wild and Scenic Rivers.
                    (D) National Scenic and Historic Trails.
                    (E) Monuments.
                    (F) Resource Natural Areas.
    (c) Competitive Lease Sale Requirements Leasing Procedures.--
            (1) Nominations.--The Secretary shall accept at any time 
        nominations of land identified under subsection (b) for leasing 
        under this Act, from any qualified person.
            (2) Competitive lease sale required.--
                    (A) In general.--Except as otherwise specifically 
                provided by this Act, all land to be leased under this 
                Act that is not subject to leasing under paragraph (3) 
                shall be leased to the highest responsible qualified 
                bidder, as determined by the Secretary.
                    (B) Annual sales required.--The Secretary shall 
                hold a competitive lease sale under this Act at least 
                once every year for land in a State with respect to 
                which there is a nomination pending under paragraph (1) 
                of land otherwise available for leasing.
            (3) Noncompetitive leasing.--The Secretary shall make 
        available for a period of 2 years for noncompetitive leasing 
        any tract for which a competitive lease sale is held under 
        paragraph (2), but for which the Secretary does not receive any 
        bids in such sale.
            (4) Pending lease applications.--It shall be a priority for 
        the Secretary to ensure timely completion of administrative 
        actions and process applications for leasing of Federal lands 
        described in subsection (b)(1)(A) for installation and 
        operation of photovoltaic and concentrating solar power energy 
        systems, that are pending on the date of enactment of this 
        subsection.
    (d) Leasing Time Period.--Any lease of lands under this section 
shall be effective for a period of 30 years, with an option to renew 
once for an additional period of 30 years.
    (e) Reservation of Royalty.--
            (1) In general.--Production of solar energy under a lease 
        under this section shall be subject to a royalty described in 
        paragraph (2), which shall be assessed and collected by the 
        Secretary of the Interior, acting through the Minerals 
        Management Service. The leaseholder shall be liable for payment 
        of such royalty.
            (2) Royalty for projects under the federal solar lands 
        leasing program.--The royalty under paragraph (1) shall be--
                    (A) 0.25 percent per kw/h on energy produced under 
                the lease in years 1 through 5 of the lease;
                    (B) 0.5 percent per kw/h on energy produced under 
                the lease in years 5 through 15 of the lease;
                    (C) 1 percent per kw/h on energy produced under the 
                lease in years 15 through 30 of the lease; and
                    (D) 1 percent per kw/h on energy produced under the 
                lease after year 30.
            (3) Revenue sharing.--Of the amount received by the United 
        States as royalty under this subsection for a leased tract--
                    (A) one-third shall be paid to the State in which 
                the lands are located;
                    (B) one-third shall be paid to the county in which 
                the lands are located; and
                    (C) one-third shall be deposited into the American 
                Energy Trust fund created by this title.
    (f) Duties of Leaseholders.--
            (1) Payment of royalty.--A person who is required to make 
        any royalty payment under this section shall make such payments 
        to the United States at such times and in such manner as the 
        Secretary may by rule prescribe.
            (2) Joint and severable liability.--Any person liable for 
        royalty payments under this section who assigns any payment 
        obligation shall remain jointly and severally liable for all 
        royalty payments due for the claim for the period.
            (3) Affirmation of payment responsibility.--Any person 
        paying royalties under this section shall file a written 
        instrument, together with the first royalty payment, affirming 
        that such person is responsible for making proper payments for 
        all amounts due for all time periods for which such person has 
        a payment responsibility. Such responsibility for the periods 
        referred to in the preceding sentence shall include any and all 
        additional amounts billed by the Secretary and determined to be 
        due by final agency or judicial action.
            (4) Recordkeeping.--Records required by the Secretary under 
        this section shall be maintained for 7 years after release of 
        financial assurance unless the Secretary notifies the 
        leaseholder that the Secretary has initiated an audit or 
        investigation involving such records and that such records must 
        be maintained for a longer period. In any case when an audit or 
        investigation is underway, records shall be maintained until 
        the Secretary releases the operator of the obligation to 
        maintain such records.
            (5) Audits.--The Secretary may conduct such audits of all 
        leaseholders directly or indirectly involved in the production 
        of solar energy on lands leased under this section as the 
        Secretary considers necessary for the purposes of ensuring 
        compliance with the requirements of this section. For purposes 
        of performing such audits, the Secretary shall, at reasonable 
        times and upon request, have access to, and may copy, all 
        books, papers, and other documents that relate to compliance 
        with any provision of this section by any person.
            (6) Provision of protected information.--Trade secrets, 
        proprietary, and other confidential information protected from 
        disclosure under section 552 of title 5, United States Code, 
        popularly known as the Freedom of Information Act, shall be 
        made available by the Secretary to other Federal agencies as 
        necessary to assure compliance with this Act and other Federal 
        laws.
            (7) Underreporting.--
                    (A) Penalty.--If there is any underreporting of 
                royalty owed on energy produced under a lease for any 
                production month by any person liable for royalty 
                payments under this section, the Secretary shall assess 
                a penalty of not greater than 10 percent of the amount 
                of that underreporting.
                    (B) Waiver or reduction authorized.--The Secretary 
                may waive or reduce a penalty assessed under this 
                paragraph if the person liable for royalty payments 
                under this section corrects the underreporting before 
                the date such person receives notice from the Secretary 
                that an underreporting may have occurred, or before 90 
                days after the date of the enactment of this section, 
                whichever is later.
                    (C) Waiver required.--The Secretary shall waive any 
                portion of an assessment under this paragraph 
                attributable to that portion of the underreporting for 
                which the person responsible for paying the royalty 
                demonstrates that--
                            (i) such person had written authorization 
                        from the Secretary to report royalty on the 
                        value of the production on basis on which it 
                        was reported;
                            (ii) such person had substantial authority 
                        for reporting royalty on the value of the 
                        production on the basis on which it was 
                        reported;
                            (iii) such person previously had notified 
                        the Secretary, in such manner as the Secretary 
                        may by rule prescribe, of relevant reasons or 
                        facts affecting the royalty treatment of 
                        specific production which led to the 
                        underreporting; or
                            (iv) such person meets any other exception 
                        which the Secretary may, by rule, establish.
                    (D) Treatment as federal share.--Subsection (b)(4) 
                shall not apply to penalties received by the United 
                States under this paragraph.
                    (E) Underreporting defined.--For the purposes of 
                this subsection, the term ``underreporting'' means the 
                difference between the royalty on the value of the 
                production that should have been reported and the 
                royalty on the value of the production that was 
                reported, if the value that should have been reported 
                is greater than the value that was reported.
    (g) Programmatic Environmental Impact Statement.--Not later than 18 
months after the date of enactment of this Act, in accordance with 
section 102(2)(C) of the National Environmental Policy Act of 1969 (42 
U.S.C. 4332(2)(C)), the Secretary of the Interior shall complete a 
programmatic environmental impact statement for the solar leasing 
program under section 3.
    (h) Final Regulation.--Not later than 6 months after the completion 
of the programmatic environmental impact statement under this section, 
the Secretary shall publish a final regulation implementing this 
section.
    (i) Study.--Not later than 2 years after the date of enactment of 
this Act, the Secretary of the Interior shall complete a study of--
            (1) Federal lands available for possible consideration of 
        leasing for a compressed air energy storage system;
            (2) barriers to additional access to Federal lands for 
        transmission of energy produced under leases awarded under the 
        solar energy leasing program under this Act; and
            (3) the need for energy transmission corridors on public 
        lands to address identified congestion or constraints.

     TITLE VII--PROMOTE GREATER ENERGY EFFICIENCY AND CONSERVATION

SEC. 701. INCREASE AND EXTENSION OF ENERGY EFFICIENT COMMERCIAL 
              BUILDINGS DEDUCTION.

    (a) Increase in Amount of Deduction.--Section 179D of the Internal 
Revenue Code of 1986 (relating to energy efficient commercial buildings 
deduction) is amended--
            (1) in subsection (b)(1)(A) by striking ``$1.80'' and 
        inserting ``$2.25'', and
            (2) in subsection (d)(1)(A) by striking ``$.60 for $1.80'' 
        and inserting ``$.75 for $2.25''.
    (b) Extension.--Subsection (h) of section 179D of such Code 
(relating to termination) is amended by striking ``December 31, 2008'' 
and inserting ``December 31, 2013''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service in taxable years beginning after 
December 31, 2006.

SEC. 702. PERMANENT EXTENSION OF THE CREDIT FOR NONBUSINESS ENERGY 
              PROPERTY, THE CREDIT FOR GAS PRODUCED FROM BIOMASS AND 
              FOR SYNTHETIC FUELS PRODUCED FROM COAL, AND THE CREDIT 
              FOR ENERGY EFFICIENT APPLIANCES.

    (a) Credit for Nonbusiness Energy Property Made Permanent.--
            (1) In general.--Section 25C of the Internal Revenue Code 
        of 1986 is amended by striking subsection (g).
            (2) Effective date.--The amendment made by this subsection 
        shall apply to property placed in service after December 31, 
        2007.
    (b) Credit for Gas Produced From Biomass and for Synthetic Fuels 
Produced From Coal Made Permanent.--
            (1) In general.--Subparagraph (B) of section 45K(f)(1) of 
        such Code is amended to read as follows:
                    ``(B) if such facility is originally placed in 
                service after December 31, 1992, paragraph (2) of 
                subsection (e) shall not apply.''.
            (2) Effective date.--The amendment made by this subsection 
        shall apply to fuel sold after December 31, 2007.
    (c) Credit for Energy Efficient Appliances Made Permanent.--
            (1) Dishwashers.--
                    (A) Subparagraph (A) of section 45M(b)(1) of such 
                Code is amended by striking ``which--'' and all that 
                follows and inserting ``which meets the requirements of 
                the Energy Star program which are in effect for 
                dishwashers for the calendar year in which 
                manufactured.''.
                    (B) Clauses (i) and (ii) of section 45M(b)(2)(B) of 
                such Code are amended to read as follows:
                            ``(i) the EF required by the Energy Star 
                        program for dishwashers for the calendar year 
                        in which manufactured minus the EF required by 
                        the Energy Star program for dishwashers in 
                        2005, to
                            ``(ii) the EF required by the Energy Star 
                        program for dishwashers for the calendar year 
                        in which manufactured.''.
            (2) Clothes washers.--Subparagraph (B) of section 45M(b)(1) 
        of such Code is amended by striking ``which--'' and all that 
        follows and inserting ``which meets the requirements of the 
        Energy Star program which are in effect for clothes washers for 
        the calendar year in which manufactured.''.
            (3) Refrigerators.--
                    (A) Clause (i) of section 45M(b)(1)(C) of such Code 
                is amended by striking ``which--'' and all that follows 
                and inserting ``which consumes at least 15 percent but 
                not more than 20 percent less kilowatt hours per year 
                than the 2001 energy conservation standards.''.
                    (B) Clause (ii) of section 45M(b)(1)(C) of such 
                Code is amended by striking ``which--'' and all that 
                follows and inserting ``which consumes at least 20 
                percent but not more than 25 percent less kilowatt 
                hours per year than the 2001 energy conservation 
                standards.''.
                    (C) Clause (iii) of section 45M(b)(1)(C) of such 
                Code is amended by striking ``which--'' and all that 
                follows and inserting ``which consumes at least 25 
                percent less kilowatt hours per year than the 2001 
                energy conservation standards.''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to appliances manufactured after 2007.

SEC. 703. EXTENSION AND CLARIFICATION OF NEW ENERGY EFFICIENT HOME 
              CREDIT.

    (a) Extension.--Subsection (g) of section 45L of the Internal 
Revenue Code of 1986 (relating to termination), as amended by section 
205 of division A of the Tax Relief and Health Care Act of 2006, is 
amended by striking ``December 31, 2008'' and inserting ``December 31, 
2013''.
    (b) Clarification.--
            (1) In general.--Paragraph (1) of section 45L(a) is amended 
        by striking ``and'' at the end of subparagraph (A) and by 
        striking subparagraph (B) and inserting the following:
                    ``(B) acquired by a person from such eligible 
                contractor, and
                    ``(C) used by any person as a residence during the 
                taxable year.''.
            (2) Effective date.--The amendments made by this subsection 
        shall take effect as if included in section 1332 of the Energy 
        Policy Act of 2005.

SEC. 704. EXTENSION AND MODIFICATION OF DEDUCTION FOR ENERGY EFFICIENT 
              COMMERCIAL BUILDINGS.

    (a) Extension.--Subsection (h) of section 179D of the Internal 
Revenue Code of 1986 (relating to termination) is amended to read as 
follows:
    ``(h) Termination.--This section shall not apply with respect to 
property--
            ``(1) which is certified under subsection (d)(6) after 
        December 31, 2012, or
            ``(2) which is placed in service after December 31, 2014.
A provisional certification shall be treated as meeting the 
requirements of paragraph (1) if it is based on the building plans, 
subject to inspection and testing after installation.''.
    (b) Increase in Maximum Amount of Deduction.--
            (1) In general.--Subparagraph (A) of section 179D(b)(1) of 
        such Code is amended by striking ``$1.80'' and inserting 
        ``$2.25''.
            (2) Partial allowance.--Paragraph (1) of section 179D(d) of 
        such Code is amended--
                    (A) by striking ``$.60'' and inserting ``$0.75'', 
                and
                    (B) by striking ``$1.80'' and inserting ``$2.25''.
    (c) Modifications to Certain Special Rules.--
            (1) Methods of calculating energy savings.--
                    (A) In general.--Paragraph (2) of section 179D(d) 
                of such Code is amended--
                            (i) by inserting ``in detail'' after 
                        ``based'',
                            (ii) by inserting ``, except that the 
                        Secretary shall use Standard 90.1-2001 in lieu 
                        of the California title 24 energy standards and 
                        the tables contained therein and the Secretary 
                        may add requirements from Standard 90.1-2001 
                        (or any successor standard)'' before the period 
                        at the end, and
                            (iii) by adding at the end the following 
                        new sentence: ``The calculation methods 
                        contained in such regulations shall also 
                        provide for the calculation of appropriate 
                        energy savings for design methods and 
                        technologies not otherwise credited in such 
                        manual or standard, including energy savings 
                        associated with natural ventilation, 
                        evaporative cooling, automatic lighting 
                        controls (such as occupancy sensors, 
                        photocells, and time clocks), day lighting, 
                        designs utilizing semi-conditioned spaces which 
                        maintain adequate comfort conditions without 
                        air conditioning or without heating, improved 
                        fan system efficiency (including reductions in 
                        static pressure), advanced unloading mechanisms 
                        for mechanical cooling (such as multiple or 
                        variable speed compressors), on-site generation 
                        of electricity (including combined heat and 
                        power systems, fuel cells, and renewable energy 
                        generation such as solar energy), and wiring 
                        with lower energy losses than wiring satisfying 
                        Standard 90.1-2001 requirements for building 
                        power distribution systems.''.
                    (B) Requirements for computer software used in 
                calculating energy and power consumption costs.--
                Paragraph (3)(B) of section 179D(d) of such Code is 
                amended by striking ``and'' at the end of clause (ii), 
                by striking the period at the end of clause (iii) and 
                inserting ``, and'', and by adding at the end the 
                following:
                            ``(iv) which automatically--
                                    ``(I) generates the features, 
                                energy use, and energy and power 
                                consumption costs of a reference 
                                building which meets Standard 90.1-
                                2001,
                                    ``(II) generates the features, 
                                energy use, and energy and power 
                                consumption costs of a compliant 
                                building or system which reduces the 
                                annual energy and power costs by 50 
                                percent compared to Standard 90.1-2001, 
                                and
                                    ``(III) compares such features, 
                                energy use, and consumption costs to 
                                the features, energy use, and 
                                consumption costs of the building or 
                                system with respect to which the 
                                calculation is being made.''.
            (2) Targets for partial allowance of credit.--Paragraph 
        (1)(B) of section 179D(d) of such Code is amended--
                    (A) by striking ``The Secretary'' and inserting the 
                following:
                            ``(i) In general.--The Secretary'', and
                    (B) by adding at the end the following:
                            ``(i) Additional requirements.--For 
                        purposes of clause (i)--
                                    ``(I) the Secretary shall determine 
                                prescriptive criteria that can be 
                                modeled explicitly for reference 
                                buildings which meet the requirements 
                                of subsection (c)(1)(D) for different 
                                building types and regions,
                                    ``(II) a system may be certified as 
                                meeting the target under subparagraph 
                                (A)(ii) if the appropriate reference 
                                building either meets the requirements 
                                of subsection (c)(1)(D) with such 
                                system rather than the comparable 
                                reference system (using the calculation 
                                under paragraph (2)) or meets the 
                                relevant prescriptive criteria under 
                                subclause (I), and
                                    ``(III) the lighting system target 
                                shall be based on lighting power 
                                density, except that it shall allow 
                                lighting controls credits that trade 
                                off for lighting power density savings 
                                based on Section 3.2.2 of the 2005 
                                California Nonresidential Alternative 
                                Calculation Method Approval Manual.
                    ``(B) Publication.--The Secretary shall publish in 
                the Federal Register the bases for the target levels 
                established in the regulations under clause (i).''.
    (d) Alternative Standards.--Section 179D(d) of such Code is amended 
by adding at the end the following new paragraph:
            ``(7) Alternative standards pending final regulations.--
        Until such time as the Secretary issues final regulations under 
        paragraph (1)(B)--
                    ``(A) in the case of property which is part of a 
                building envelope, the building envelope system target 
                under paragraph (1)(A)(ii) shall be a 7 percent 
                reduction in total annual energy and power costs 
                (determined in the same manner as under subsection 
                (c)(1)(D)), and
                    ``(B) in the case of property which is part of the 
                heating, cooling, ventilation, and hot water systems, 
                the heating, cooling, ventilation, and hot water system 
                shall be treated as meeting the target under paragraph 
                (1)(A)(ii) if it would meet the requirement in 
                subsection (c)(1)(D) if combined with a building 
                envelope system and lighting system which met their 
                respective targets under paragraph(1)(A)(ii) (including 
                interim targets in effect under subsection (f) and 
                subparagraph (A)).''.
    (e) Modifications to Lighting Standards.--
            (1) Standards to be alternate standards.--Subsection (f) of 
        section 179D of such Code is amended by--
                    (A) striking ``Interim'' in the heading and 
                inserting ``Alternative'', and
                    (B) inserting ``, or, if the taxpayer elects, in 
                lieu of the target set forth in such final 
                regulations'' after ``lighting system'' at the end of 
                the matter preceding paragraph (1).
            (2) Qualified individuals.--Section 179D(d)(6)(C) of such 
        Code is amended by adding at the end the following: ``For 
        purposes of certification of whether the alternative target for 
        lighting systems under subsection (f) is met, individuals 
        qualified to determine compliance shall include individuals who 
        are certified as Lighting Certified (LC) by the National 
        Council on Qualifications for the Lighting Professions, 
        Certified Energy Managers (CEM) by the Association of Energy 
        Engineers, and LEED Accredited Professionals (AP) by the U.S. 
        Green Buildings Council.''.
            (3) Requirement for bilevel switching.--Section 179D(f)(2) 
        of such Code is amended by adding at the end the following new 
        subparagraph:
            ``(3) Application of subsection to bilevel switching.--
                    ``(A) In general.--Notwithstanding paragraph 
                (2)(C)(i), this subsection shall apply to a system 
                which does not include provisions for bilevel switching 
                if the reduction in lighting power density is at least 
                37.5 percent of the minimum requirements in Table 
                9.3.1.1 or Table 9.3.1.2 (not including additional 
                interior lighting allowances) of Standard 90.1-2001.
                    ``(B) Reduction in deduction.--In the case of a 
                system to which this subsection applies by reason of 
                subparagraph (A), paragraph (2) shall be applied--
                            ``(i) by striking `40 percent' and 
                        inserting `50 percent' in subparagraph (A) 
                        thereof, and
                            ``(ii) in subparagraph (B)(ii) thereof--
                                    ``(I) by striking `25 percentage 
                                points' and inserting `37.5 percentage 
                                points'; and
                                    ``(II) by striking `15' and 
                                inserting `12.5'.''.
    (f) Public Property.--Paragraph (4) of section 179(d) of such Code 
is amended by striking ``the Secretary shall promulgate a regulation to 
allow the allocation of the deduction'' and inserting ``the deduction 
under this section shall be allowed''.
    (g) Effective Date.--The amendments made by this section shall 
apply to property placed in service in taxable years beginning after 
the date of the enactment of this Act.

SEC. 705. DEDUCTION FOR ENERGY EFFICIENT LOW-RISE BUILDINGS.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986, as amended by section 404 of division A 
of the Tax Relief and Health Care Act of 2006, is amended by inserting 
after section 179E the following new section:

``SEC. 179F. ENERGY EFFICIENT LOW-RISE BUILDINGS DEDUCTION.

    ``(a) In General.--There shall be allowed as a deduction an amount 
equal to the amount of qualified energy efficiency expenditures paid or 
incurred by the taxpayer during the taxable year.
    ``(b) Limitations.--
            ``(1) In general.--The amount allowed as a credit under 
        subsection (a) with respect to any dwelling unit shall not 
        exceed the product of--
                    ``(A) the qualified energy savings achieved, and
                    ``(B) $12,000.
            ``(2) Minimum amount of qualified energy savings.--No 
        credit shall be allowed under subsection (a) with respect to 
        any dwelling unit in a qualified low-rise building which 
        achieves a qualified energy savings of less than 20 percent.
    ``(c) Qualified Energy Efficiency Expenditures.--For purposes of 
this section--
            ``(1) In general.--The term `qualified energy efficiency 
        expenditures' means any amount paid or incurred which is 
        related to producing qualified energy savings in any dwelling 
        unit located in a qualified low-rise building of the taxpayer 
        which is located in the United States.
            ``(2) No double benefit for certain expenditures.--The term 
        `qualified energy efficiency expenditures' shall not include 
        any expenditure for any property for which a deduction has been 
        allowed to the taxpayer under section 179G.
            ``(3) Qualified low-rise building.--The term `qualified 
        low-rise building' means a building--
                    ``(A) with respect to which depreciation is 
                allowable under section 167,
                    ``(B) which is used for multifamily housing, and
                    ``(C) which is not within the scope of Standard 
                90.1-2001 (as defined under section 179D(c)(2)).
    ``(d) Qualified Energy Savings.--For purposes of this section--
            ``(1) In general.--The term `qualified energy savings' 
        means, with respect to any dwelling unit in a qualified low-
        rise building, the amount (measured as a percentage) by which--
                    ``(A) the annual energy use with respect to such 
                dwelling unit after qualified energy efficiency 
                expenditures are made, as certified under paragraph 
                (2), is less than
                    ``(B) the annual energy use with respect to such 
                dwelling unit before the qualified energy efficiency 
                expenditures were made, as certified under paragraph 
                (2).
        In determining annual energy use under subparagraph (B), any 
        energy efficiency improvements which are not attributable to 
        qualified energy efficiency expenditures shall be disregarded.
            ``(2) Certification.--
                    ``(A) In general.--The Secretary, in consultation 
                with the Secretary of Energy, shall prescribe the 
                procedures and method for the making of certifications 
                under this paragraph based on the Residential Energy 
                Services Network (RESNET) Technical Guidelines in 
                effect on the date of the enactment of this Act.
                    ``(B) Qualified individuals.--Any certification 
                made under this paragraph may only be made by an 
                individual who is recognized by an organization 
                certified by the Secretary for such purposes.
    ``(e) Special Rules.--For purposes of this section, rules similar 
to the rules under paragraphs (8) and (9) of section 25D(e) shall 
apply.
    ``(f) Basis Adjustments.--For purposes of this subtitle, if a 
credit is allowed under this section with respect to any expenditure 
with respect to any property, the increase in the basis of such 
property which would (but for this subsection) result from such 
expenditure shall be reduced by the amount of the credit so allowed.
    ``(g) Termination.--This section shall not apply with respect to 
any property placed in service after December 31, 2013.''.
    (b) Conforming Amendments.--
            (1) Section 263(a)(1) of such Code, as amended by section 
        404 of division A of the Tax Relief and Health Care Act of 
        2006, 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 312(k)(3)(B) of such Code is amended by 
        striking ``179, 179A, 179B, 179C, 179D, or 179E'' each place it 
        appears in the heading and text and inserting ``179, 179A, 
        179B, 179C, 179D, 179E, or 179F''.
            (3) Section 1016(a) of such Code, as amended by section 
        101, 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 179F(f).''.
            (4) Section 1245(a) of such Code is amended by inserting 
        ``179F,'' after ``179E,'' both places it appears in paragraphs 
        (2)(C) and (3)(C).
            (5) The table of sections for part VI of subchapter B of 
        such Code is amended by inserting after the item relating to 
        section 179E the following new item:

``Sec. 179F. Energy efficient low-rise buildings deduction.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after the 
date of the enactment of this Act.

    TITLE VIII--INCREASING AMERICA'S GASOLINE REFINING CAPABILITIES

SEC. 801. DEFINITIONS.

    For purposes of this title--
            (1) the term ``Administrator'' means the Administrator of 
        the Environmental Protection Agency;
            (2) the term ``applicant'' means a person who (with the 
        approval of the governor of the State, or in the case of Native 
        American tribes or tribal territories the designated leader of 
        the tribe or tribal community, where the proposed refinery 
        would be located) is seeking a Federal refinery authorization;
            (3) the term ``biomass'' has the meaning given that term in 
        section 932(a)(1) of the Energy Policy Act of 2005;
            (4) the term ``Federal refinery authorization''--
                    (A) means any authorization required under Federal 
                law, whether administered by a Federal or State 
                administrative agency or official, with respect to 
                siting, construction, expansion, or operation of a 
                refinery; and
                    (B) includes any permits, licenses, special use 
                authorizations, certifications, opinions, or other 
                approvals required under Federal law with respect to 
                siting, construction, expansion, or operation of a 
                refinery;
            (5) the term ``refinery'' means--
                    (A) a facility designed and operated to receive, 
                load, unload, store, transport, process, and refine 
                crude oil by any chemical or physical process, 
                including distillation, fluid catalytic cracking, 
                hydrocracking, coking, alkylation, etherification, 
                polymerization, catalytic reforming, isomerization, 
                hydrotreating, blending, and any combination thereof, 
                in order to produce gasoline or distillate;
                    (B) a facility designed and operated to receive, 
                load, unload, store, transport, process, and refine 
                coal by any chemical or physical process, including 
                liquefaction, in order to produce gasoline or diesel as 
                its primary output; or
                    (C) a facility designed and operated to receive, 
                load, unload, store, transport, process (including 
                biochemical, photochemical, and biotechnology 
                processes), and refine biomass in order to produce 
                biofuel;
            (6) the term ``Secretary'' means the Secretary of Energy; 
        and
            (7) the term ``State'' means a State, the District of 
        Columbia, the Commonwealth of Puerto Rico, and any other 
        territory or possession of the United States.

SEC. 802. STATE ASSISTANCE.

    (a) State Assistance.--At the request of a governor of a State, or 
in the case of Native American tribes or tribal territories the 
designated leader of the tribe or tribal community, the Administrator 
is authorized to provide financial assistance to that State or tribe or 
tribal community to facilitate the hiring of additional personnel to 
assist the State or tribe or tribal community with expertise in fields 
relevant to consideration of Federal refinery authorizations.
    (b) Other Assistance.--At the request of a governor of a State, or 
in the case of Native American tribes or tribal territories the 
designated leader of the tribe or tribal community, a Federal agency 
responsible for a Federal refinery authorization shall provide 
technical, legal, or other nonfinancial assistance to that State or 
tribe or tribal community to facilitate its consideration of Federal 
refinery authorizations.

SEC. 803. REFINERY PROCESS COORDINATION AND PROCEDURES.

    (a) Appointment of Federal Coordinator.--
            (1) In general.--The President shall appoint a Federal 
        coordinator to perform the responsibilities assigned to the 
        Federal coordinator under this title.
            (2) Other agencies.--Each Federal and State agency or 
        official required to provide a Federal refinery authorization 
        shall cooperate with the Federal coordinator.
    (b) Federal Refinery Authorizations.--
            (1) Meeting participants.--Not later than 30 days after 
        receiving a notification from an applicant that the applicant 
        is seeking a Federal refinery authorization pursuant to Federal 
        law, the Federal coordinator appointed under subsection (a) 
        shall convene a meeting of representatives from all Federal and 
        State agencies responsible for a Federal refinery authorization 
        with respect to the refinery. The governor of a State shall 
        identify each agency of that State that is responsible for a 
        Federal refinery authorization with respect to that refinery.
            (2) Memorandum of agreement.--(A) Not later than 90 days 
        after receipt of a notification described in paragraph (1), the 
        Federal coordinator and the other participants at a meeting 
        convened under paragraph (1) shall establish a memorandum of 
        agreement setting forth the most expeditious coordinated 
        schedule possible for completion of all Federal refinery 
        authorizations with respect to the refinery, consistent with 
        the full substantive and procedural review required by Federal 
        law. If a Federal or State agency responsible for a Federal 
        refinery authorization with respect to the refinery is not 
        represented at such meeting, the Federal coordinator shall 
        ensure that the schedule accommodates those Federal refinery 
        authorizations, consistent with Federal law. In the event of 
        conflict among Federal refinery authorization scheduling 
        requirements, the requirements of the Environmental Protection 
        Agency shall be given priority.
            (B) Not later than 15 days after completing the memorandum 
        of agreement, the Federal coordinator shall publish the 
        memorandum of agreement in the Federal Register.
            (C) The Federal coordinator shall ensure that all parties 
        to the memorandum of agreement are working in good faith to 
        carry out the memorandum of agreement, and shall facilitate the 
        maintenance of the schedule established therein.
    (c) Consolidated Record.--The Federal coordinator shall, with the 
cooperation of Federal and State administrative agencies and officials, 
maintain a complete consolidated record of all decisions made or 
actions taken by the Federal coordinator or by a Federal administrative 
agency or officer (or State administrative agency or officer acting 
under delegated Federal authority) with respect to any Federal refinery 
authorization. Such record shall be the record for judicial review 
under subsection (d) of decisions made or actions taken by Federal and 
State administrative agencies and officials, except that, if the Court 
determines that the record does not contain sufficient information, the 
Court may remand the proceeding to the Federal coordinator for further 
development of the consolidated record.
    (d) Remedies.--
            (1) In general.--The United States District Court for the 
        district in which the proposed refinery is located shall have 
        exclusive jurisdiction over any civil action for the review of 
        the failure of an agency or official to act on a Federal 
        refinery authorization in accordance with the schedule 
        established pursuant to the memorandum of agreement.
            (2) Standing.--If an applicant or a party to a memorandum 
        of agreement alleges that a failure to act described in 
        paragraph (1) has occurred and that such failure to act would 
        jeopardize timely completion of the entire schedule as 
        established in the memorandum of agreement, such applicant or 
        other party may bring a cause of action under this subsection.
            (3) Court action.--If an action is brought under paragraph 
        (2), the Court shall review whether the parties to the 
        memorandum of agreement have been acting in good faith, whether 
        the applicant has been cooperating fully with the agencies that 
        are responsible for issuing a Federal refinery authorization, 
        and any other relevant materials in the consolidated record. 
        Taking into consideration those factors, if the Court finds 
        that a failure to act described in paragraph (1) has occurred, 
        and that such failure to act would jeopardize timely completion 
        of the entire schedule as established in the memorandum of 
        agreement, the Court shall establish a new schedule that is the 
        most expeditious coordinated schedule possible for completion 
        of proceedings, consistent with the full substantive and 
        procedural review required by Federal law. The court may issue 
        orders to enforce any schedule it establishes under this 
        paragraph.
            (4) Federal coordinator's action.--When any civil action is 
        brought under this subsection, the Federal coordinator shall 
        immediately file with the Court the consolidated record 
        compiled by the Federal coordinator pursuant to subsection (c).
            (5) Expedited review.--The Court shall set any civil action 
        brought under this subsection for expedited consideration.

SEC. 804. DESIGNATION OF CLOSED MILITARY BASES.

    (a) Designation Requirement.--Not later than 90 days after the date 
of enactment of this Act, the President shall designate no less than 3 
closed military installations, or portions thereof, as potentially 
suitable for the construction of a refinery. At least 1 such site shall 
be designated as potentially suitable for construction of a refinery to 
refine biomass in order to produce biofuel.
    (b) Redevelopment Authority.--The redevelopment authority for each 
installation designated under subsection (a), in preparing or revising 
the redevelopment plan for the installation, shall consider the 
feasibility and practicability of siting a refinery on the 
installation.
    (c) Management and Disposal of Real Property.--The Secretary of 
Defense, in managing and disposing of real property at an installation 
designated under subsection (a) pursuant to the base closure law 
applicable to the installation, shall give substantial deference to the 
recommendations of the redevelopment authority, as contained in the 
redevelopment plan for the installation, regarding the siting of a 
refinery on the installation. The management and disposal of real 
property at a closed military installation or portion thereof found to 
be suitable for the siting of a refinery under subsection (a) shall be 
carried out in the manner provided by the base closure law applicable 
to the installation.
    (d) Definitions.--For purposes of this section--
            (1) the term ``base closure law'' means the Defense Base 
        Closure and Realignment Act of 1990 (part A of title XXIX of 
        Public Law 101-510; 10 U.S.C. 2687 note) and title II of the 
        Defense Authorization Amendments and Base Closure and 
        Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note); and
            (2) the term ``closed military installation'' means a 
        military installation closed or approved for closure pursuant 
        to a base closure law.

SEC. 805. SAVINGS CLAUSE.

    Nothing in this title shall be construed to affect the application 
of any environmental or other law, or to prevent any party from 
bringing a cause of action under any environmental or other law, 
including citizen suits.

SEC. 806. REFINERY REVITALIZATION REPEAL.

    Subtitle H of title III of the Energy Policy Act of 2005 and the 
items relating thereto in the table of contents of such Act are 
repealed.

SEC. 807. NEW SOURCE REVIEW UNDER THE CLEAN AIR ACT.

    Part A of title I of the Clean Air Act (42 U.S.C. 7401 and 
following) is amended by adding the following new section at the end 
thereof:

``SEC. 132 NEW SOURCE REVIEW.

    ``In promulgating regulations respecting new source review under 
this Act, the Administrator shall include in such regulations 
provisions providing that routine maintenance and repair shall not 
constitute a modification of an existing source requiring compliance 
with new source review requirements. Such provisions shall provide that 
equipment replacement shall be considered routine maintenance and 
repair if it meets each of the following requirements:
            ``(1) It does not increase actual emissions of any air 
        pollutant by more than 5 percent.
            ``(2) It does not increase actual emissions of any air 
        pollutant by more than 40 tons per year.
Notwithstanding any other provision of this Act, no State may include 
in any State implementation plan any provisions regarding new source 
review that are more stringent than those contained in the regulations 
of the Administrator under this section.''.

SEC. 808. DESIGNATION OF NEW REFINING CAPACITY ON BROWNFIELD SITES.

    (a) Designation Requirement.--Not later than 90 days after the date 
of enactment of this Act, the Secretary shall designate no less than 5 
brownfield sites, or portions thereof, subject to subsection (c)(2), 
that are appropriate and available for the purposes of siting a 
refinery.
    (b) Analysis of Refinery Sites.--In considering any site for 
possible designation under subsection (a), the Secretary shall conduct 
an analysis of--
            (1) the availability of crude oil supplies to the site, 
        including supplies from domestic production of shale oil and 
        tar sands and other strategic unconventional fuels;
            (2) the distribution of the Nation's refined petroleum 
        product demand;
            (3) whether such site is in close proximity to substantial 
        pipeline infrastructure, including both crude oil and refined 
        petroleum product pipelines, and potential infrastructure 
        feasibility;
            (4) the need to diversify the geographical location of the 
        domestic refining capacity;
            (5) the effect that increased refined petroleum products 
        from a refinery on that site may have on the price and supply 
        of gasoline to consumers; and
            (6) such other factors as the Secretary considers 
        appropriate.
    (c) Making Designated Sites Available.--
            (1) Secretary's role.--If a designated site is owned by the 
        Federal Government, the Secretary shall take appropriate 
        actions to make the site available for the construction of a 
        refinery. If the site is not owned by the Federal Government, 
        the Secretary shall facilitate the necessary transfer of 
        interest in the site from a willing seller to enable the 
        construction of a refinery on the site.
            (2) Governor's objection.--No site may be used for a 
        refinery under this Act if, not later than 60 days after 
        designation of the site under subsection (a), the Governor of 
        the State in which the site is located transmits to the 
        Secretary an objection to the designation, unless, not later 
        than 60 days after the Secretary receives such objection, the 
        Congress has by law overridden the objection.

SEC. 809. YEAR EXTENSION OF ELECTION TO EXPENSE CERTAIN REFINERIES.

    (a) In General.--Paragraph (1) of section 179C(c) of the Internal 
Revenue Code of 1986 (defining qualified refinery property) is 
amended--
            (1) by striking ``January 1, 2012'' in subparagraph (B) and 
        inserting ``January 1, 2017'', and (2) by striking ``January 1, 
        2008'' each place it appears in subparagraph (F) and inserting 
        ``January 1, 2013''.
    (b) Implementation Through Secretarial Guidance.--
            (1) Guidance.--Paragraph (1) of section 179C(b) of such 
        Code (relating to general rule for election) is amended by 
        inserting ``or other guidance'' after ``regulations''.
            (2) Reporting.--Subsection (h) of section 179C of such Code 
        (relating to reporting) is amended by striking ``shall 
        require'' and inserting ``may, through guidance, require''.
    (c) Effective Date.--The amendments made by this Act shall apply to 
property placed in service after December 31, 2007.
    (d) Requirement for Issuance of Guidance.--Not later than 90 days 
after the date of the enactment of this Act, the Secretary of the 
Treasury shall issue regulations or other guidance to carry out section 
179C of the Internal Revenue Code of 1986 (as amended by this section).

       TITLE IX--COMMON SENSE REGULATORY RELIEF AND POLICY REFORM

SEC. 901. EXTENSION AND MODIFICATION OF RENEWABLE ENERGY PRODUCTION TAX 
              CREDIT.

    (a) Extension of Credit.--Each of the following provisions of 
section 45(d) (relating to qualified facilities) is amended by striking 
``January 1, 2009'' and inserting ``January 1, 2018'':
            (1) Paragraph (1).
            (2) Clauses (i) and (ii) of paragraph (2)(A).
            (3) Clauses (i)(I) and (ii) of paragraph (3)(A).
            (4) Paragraph (4).
            (5) Paragraph (5).
            (6) Paragraph (6).
            (7) Paragraph (7).
            (8) Paragraph (8).
            (9) Subparagraphs (A) and (B) of paragraph (9).
    (b) Production Credit for Electricity Produced From Marine 
Renewables.--
            (1) In general.--Paragraph (1) of section 45(c) (relating 
        to resources) is amended by striking ``and'' at the end of 
        subparagraph (G), by striking the period at the end of 
        subparagraph (H) and inserting ``, and'', and by adding at the 
        end the following new subparagraph:
                    ``(I) marine and hydrokinetic renewable energy.''.
            (2) Marine renewables.--Subsection (c) of section 45 is 
        amended by adding at the end the following new paragraph:
            ``(10) Marine and hydrokinetic renewable energy.--
                    ``(A) In general.--The term `marine and 
                hydrokinetic renewable energy' means energy derived 
                from--
                            ``(i) waves, tides, and currents in oceans, 
                        estuaries, and tidal areas,
                            ``(ii) free flowing water in rivers, lakes, 
                        and streams,
                            ``(iii) free flowing water in an irrigation 
                        system, canal, or other man-made channel, 
                        including projects that utilize nonmechanical 
                        structures to accelerate the flow of water for 
                        electric power production purposes, or
                            ``(iv) differentials in ocean temperature 
                        (ocean thermal energy conversion).
                    ``(B) Exceptions.--Such term shall not include any 
                energy which is derived from any source which utilizes 
                a dam, diversionary structure (except as provided in 
                subparagraph (A)(iii)), or impoundment for electric 
                power production purposes.''.
            (3) Definition of facility.--Subsection (d) of section 45 
        is amended by adding at the end the following new paragraph:
            ``(11) Marine and hydrokinetic renewable energy 
        facilities.--In the case of a facility producing electricity 
        from marine and hydrokinetic renewable energy, the term 
        `qualified facility' means any facility owned by the taxpayer--
                    ``(A) which has a nameplate capacity rating of at 
                least 150 kilowatts, and
                    ``(B) which is originally placed in service on or 
                after the date of the enactment of this paragraph and 
                before January 1, 2010.''.
            (4) Credit rate.--Subparagraph (A) of section 45(b)(4) is 
        amended by striking ``or (9)'' and inserting ``(9), or (11)''.
            (5) Coordination with small irrigation power.--Paragraph 
        (5) of section 45(d), as amended by subsection (a), is amended 
        by striking ``January 1, 2013'' and inserting ``the date of the 
        enactment of paragraph (11)''.
    (c) Sales of Electricity to Regulated Public Utilities Treated as 
Sales to Unrelated Persons.--Section 45(e)(4) (relating to related 
persons) is amended by adding at the end the following new sentence: 
``A taxpayer shall be treated as selling electricity to an unrelated 
person if such electricity is sold to a regulated public utility (as 
defined in section 7701(a)(33).''.
    (d) Trash Facility Clarification.--Paragraph (7) of section 45(d) 
is amended--
            (1) by striking ``facility which burns'' and inserting 
        ``facility (other than a facility described in paragraph (6)) 
        which uses'', and
            (2) by striking ``COMBUSTION'' in the heading thereof.
    (e) Effective Dates.--
            (1) Extension.--The amendments made by subsection (a) shall 
        apply to property originally placed in service after December 
        31, 2008.
            (2) Modifications.--The amendments made by subsections (b) 
        and (c) shall apply to electricity produced and sold after the 
        date of the enactment of this Act, in taxable years ending 
        after such date.
            (3) Trash facility clarification.--The amendments made by 
        subsection (d) shall apply to electricity produced and sold 
        before, on, or after December 31, 2007.

SEC. 902. EXTENSION AND MODIFICATION OF SOLAR ENERGY AND FUEL CELL 
              INVESTMENT TAX CREDIT.

    (a) Extension of Credit.--
            (1) Solar energy property.--Paragraphs (2)(A)(i)(II) and 
        (3)(A)(ii) of section 48(a) (relating to energy credit) are 
        each amended by striking ``January 1, 2009'' and inserting 
        ``January 1, 2018''.
            (2) Fuel cell property.--Subparagraph (E) of section 
        48(c)(1) (relating to qualified fuel cell property) is amended 
        by striking ``December 31, 2008'' and inserting ``December 31, 
        2017''.
            (3) Qualified microturbine property.--Subparagraph (E) of 
        section 48(c)(2) (relating to qualified microturbine property) 
        is amended by striking ``December 31, 2008'' and inserting 
        ``December 31, 2017''.
    (b) Allowance of Energy Credit Against Alternative Minimum Tax.--
Subparagraph (B) of section 38(c)(4) (relating to specified credits) is 
amended by striking ``and'' at the end of clause (iii), by striking the 
period at the end of clause (iv) and inserting ``, and'', and by adding 
at the end the following new clause:
    ``(v) the credit determined under section 46 to the extent that 
such credit is attributable to the energy credit determined under 
section 48.''.
    (c) Repeal of Dollar Per Kilowatt Limitation for Fuel Cell 
Property.--
            (1) In general.--Section 48(c)(1) (relating to qualified 
        fuel cell), as amended by subsection (a)(2), is amended by 
        striking subparagraph (B) and by redesignating subparagraphs 
        (C), (D), and (E) as subparagraphs (B), (C), and (D), 
        respectively.
            (2) Conforming amendment.--Section 48(a)(1) is amended by 
        striking ``paragraphs (1)(B) and (2)(B) of subsection (c)'' and 
        inserting ``subsection (c)(2)(B)''.
    (d) Public Electric Utility Property Taken Into Account.--
            (1) In general.--Paragraph (3) of section 48(a) is amended 
        by striking the second sentence thereof.
            (2) Conforming amendments.--
                    (A) Paragraph (1) of section 48(c), as amended by 
                this section, is amended by striking subparagraph (C) 
                and redesignating subparagraph (D) as subparagraph (C).
                    (B) Paragraph (2) of section 48(c), as amended by 
                subsection (a)(3), is amended by striking subparagraph 
                (D) and redesignating subparagraph (E) as subparagraph 
                (D).
    (e) Effective Dates.--
            (1) Extension.--The amendments made by subsection (a) shall 
        take effect on the date of the enactment of this Act.
            (2) Allowance against alternative minimum tax.--The 
        amendments made by subsection (b) shall apply to credits 
        determined under section 46 of the Internal Revenue Code of 
        1986 in taxable years beginning after the date of the enactment 
        of this Act and to carrybacks of such credits.
            (3) Fuel cell property and public electric utility 
        property.--The amendments made by subsections (c) and (d) shall 
        apply to periods after the date of the enactment of this Act, 
        in taxable years ending after such date, under rules similar to 
        the rules of section 48(m) of the Internal Revenue Code of 1986 
        (as in effect on the day before the date of the enactment of 
        the Revenue Reconciliation Act of 1990).

SEC. 903. REPEAL OF REQUIREMENT TO DEDUCT FROM AN AMOUNT PAYABLE TO 
              EACH STATE.

    Title I of division F of the Consolidated Appropriations Act, 2008 
is amended under the heading ``Minerals Management Service'', under the 
heading ``administrative provisions'', by striking the second sentence.

SEC. 904. PRODUCTION CREDIT FOR ELECTRICITY PRODUCED FROM CONVENTIONAL 
              HYDROPOWER PROJECTS.

    (a) In General.--Subparagraph (A) of section 45(c)(8) of the 
Internal Revenue Code of 1986 (relating to qualified hydropower 
production) is amended by striking ``and'' at the end of clause (i), by 
striking the period at the end of clause (ii) and inserting ``, and'', 
and by adding at the end the following new clause:
                            ``(iii) in the case of any hydroelectric 
                        dam which was placed in service after the date 
                        of the enactment of this clause, the hydropower 
                        production from the facility for the taxable 
                        year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to property placed in service after the date of the enactment of this 
Act.

SEC. 905. DEFINITION OF RENEWABLE BIOMASS.

    Section 211(o)(1)(I) of the Clean Air Act (42 U.S.C. 7545(o)(1)(I)) 
is amended--
            (1) in clause (ii), by striking ``on non-federal land''; 
        and
            (2) in clause (iv), by striking ``that are from non-federal 
        forestlands, including forestlands'' and inserting ``from 
        forestlands, including those on public lands and those''.

SEC. 906. NEPA JUDICIAL REVIEW.

    Title I of the National Environmental Policy Act of 1969 (42 U.S.C. 
4331 et seq.) is amended by adding at the end the following new 
section:

``SEC. 106. JUDICIAL REVIEW.

    ``(a) In General.--Review of a Federal agency's compliance with 
section 102 of the Act may be filed in the circuit in which the 
petitioner resides or transacts business which is directly affected by 
the action. Any such application for review shall be made within ninety 
days from the date of promulgation of the Federal agency's decision.
    ``(b) Procedures for Review.--
            ``(1) Limitation.--In any judicial action under this Act, 
        judicial review of any issues concerning a Federal agency's 
        compliance with section 102 shall be limited to the 
        administrative record. Otherwise applicable principles of 
        administrative law shall govern whether any supplemental 
        materials may be considered by the court.
            ``(2) Standard.--In considering objections raised in any 
        judicial action under this Act, the court shall uphold the 
        Federal agency's decision, whether in is the first instance, a 
        revocation, recession or other action, unless the objecting 
        party can demonstrate, on the administrative record, that the 
        decision was arbitrary and capricious or otherwise not in 
        accordance with law.
            ``(3) Remedy.--If the court finds that the selection of the 
        response action was arbitrary and capricious or otherwise not 
        in accordance with law, the court shall award such relief as 
        the court deems appropriate.
            ``(4) Procedural errors.--In reviewing alleged procedural 
        errors, the court may disallow costs or damages only if the 
        errors were so serious and related to matters of such central 
        relevance to the action that the action would have been 
        significantly changed had such errors not been made.
    ``(c) Notice of Actions.--Whenever any action is brought under this 
Act in a court of the United States by a plaintiff other than the 
United States, the plaintiff shall provide a copy of the complaint to 
the Attorney General of the United States and to the Secretary or 
Administrator of the affected Federal agency.
    ``(d) Intervention.--In any action commenced under this Act, any 
person may intervene as a matter of right when such person claims an 
interest relating to the subject of the action and is so situated that 
the disposition of the action may, as a practical matter, impair or 
impede the person's ability to protect that interest, unless the 
Secretary or Administrator shows that the person's interest is 
adequately represented by existing parties.''.

    TITLE X--TAX-EXEMPT FINANCING OF CERTAIN ELECTRIC TRANSMISSION 
                               FACILITIES

SEC. 1001. TAX-EXEMPT FINANCING OF CERTAIN ELECTRIC TRANSMISSION 
              FACILITIES NOT SUBJECT TO PRIVATE BUSINESS USE TEST.

    (a) In General.--Section 141(b)(6) of the Internal Revenue Code of 
1986 (defining private business use) is amended by adding at the end 
the following new subparagraph:
                    ``(C) Exception for certain electric transmission 
                facilities.--For purposes of the 1st sentence of 
                subparagraph (A), the operation or use of an electric 
                transmission facility by any person which is not a 
                governmental unit shall not be considered a private 
                business use if--
                            ``(i) the facility is placed in service on 
                        or after the date of the enactment of this 
                        subparagraph and is owned by--
                                    ``(I) a State or political 
                                subdivision of a State, or any agency, 
                                authority, or instrumentality of any of 
                                the foregoing providing electric 
                                service, directly or indirectly to the 
                                public, or
                                    ``(II) a State or political 
                                subdivision of a State expressly 
                                authorized under applicable State law 
                                effective on or after January 1, 2004, 
                                to finance and own electric 
                                transmission facilities, and
                            ``(ii) bonds for such facility are issued 
                        before the date which is 5 years after the date 
                        of the enactment of this subparagraph.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to bonds issued after the date of the enactment of this Act.

TITLE XI--RESTORE OUR DOMESTIC ENERGY WORKFORCE SCIENCE AND TECHNOLOGY 
                               EDUCATION

SEC. 1101. SHORT TITLE.

    This title may be cited as the ``Strengthening Americas Science and 
Technology Education Act''.

SEC. 1102. POLICY.

    It is the policy of the United States to maintain the human capital 
needed to preserve and foster the economic, energy, and mineral 
resources security of the United States. The Science and Technology 
programs that produce human capital needed for the energy and mineral 
resources security of the United States are national assets and shall 
be assisted with Federal funds to ensure their continued health and 
existence.

SEC. 1103. MAINTAINING SCIENCE AND TECHNOLOGY EDUCATION PROGRAMS.

    (a) The Secretary of the Interior (in this title referred to as the 
``Secretary'') shall administer this title and shall prescribe rules 
and regulations to carry out its policies and provisions not later than 
1 year after enactment.
    (b) In support of the policy stated in section 2, the Secretary 
shall provide research funds to schools, universities, and institutions 
to assist in maintaining recognized programs in energy, petroleum, 
mining, and mineral engineering education and research.
    (c) All funds shall be directed only to recognized programs and 
shall be subject to the conditions of this title.
    (d) Research funded at recognized programs under this title shall 
include studies and research to enhance basic science and engineering 
as well as studies to provide proof of scientific or engineering 
concepts and studies to determine scientific or engineering 
feasibility.
    (e) The Secretary shall only provide funds to recognized programs, 
which for the purposes of this title shall mean--
            (1) an engineering program for energy, petroleum, chemical, 
        mining, or mineral engineering accredited on the date of 
        enactment;
            (2) a geological engineering or geophysical engineering 
        that is accredited on the date of enactment of this Act and 
        which is focused on petroleum or natural gas production, the 
        production of mineral resources, and the development of 
        permanent underground workings as demonstrated by the 
        curriculum and the expertise of the existing faculty; or
            (3) a program in geology or geophysics that the Secretary 
        determines to be acceptable under this title and that have 
        undergraduate and graduate programs of research and education 
        in the geology and geophysics of conventional or 
        nonconventional energy, geothermal, metallic and nonmetallic 
        deposits, including industrial minerals, sand and gravel 
        deposits.
    (f) All recognized engineering programs must meet meeting the 
specific program criteria, established by the member societies of ABET, 
Inc. of Baltimore Maryland. In the absence of a nationally recognized 
accreditation program for the applied geology and geophysics programs 
the Secretary shall request the Committee created by this title to 
examine the program and the outcomes of the programs to determine if it 
is appropriate to provide funding for the program.
    (g) Each school, university, or institution receiving funds under 
this title shall maintain the program for which the funds are provided 
for 10 years after the date of the last 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, chemical, mining, geological, geophysical, or 
mineral engineering, and geology and geophysics.
    (h) The Secretary shall show particular consideration to minority 
serving institutions with an established recognized program or that 
proposes to establish a recognized program, including but not limited 
to assigning appropriate employees to serve as mentors and adjunct 
faculty, transferring appropriate equipment to the programs and 
allowing faculty or students at such institutions free access to 
appropriate departmental training.
    (i) Where appropriate, the Secretary may make funds available to 
consortia to conduct projects of broad application that could not 
otherwise be undertaken, including national and regional projects in 
geology or geophysics and engineering as applied to petroleum, 
geothermal, mining, and mineral processing or beneficiation. Provided, 
that funds granted to any consortium shall only be given to a single 
eligible school with a recognized program which shall be responsible 
for distribution, monitoring, and reporting on the activities of the 
consortium as required by the Secretary.

SEC. 1104. FUNDS FOR SCHOLARSHIPS AND FELLOWSHIPS.

    (a) The Secretary shall provide funds for the purpose of providing 
merit-based scholarships for undergraduate education, graduate 
fellowships, and postdoctoral fellowships at eligible schools.
    (b) In awarding the Scholarships and fellowships authorized by this 
section the Secretary shall give a preference for veterans and service 
members who have received or will receive either the Afghanistan 
Campaign Medal or the Iraq Campaign Medal as authorized by Public Law 
108-234, and Executive Order No. 13363.
    (c) 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, chemical, 
mining, geological, geophysical, or mineral engineering, petroleum 
geology, geothermal geology, mining and economic geology, petroleum and 
mining geophysics, or mineral economics in a program recognized under 
this title.
    (d) The regulations shall require that an individual, in order to 
retain a scholarship or graduate fellowship, must continue in one of 
the course of studies authorized by 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 (c) of this section after notice that such 
completion is a requirement of receipt funding under this title. 
Students may change courses of study provided they remain within the 
listing of programs in subsection (c).
    (e) An individual granted a scholarship or fellowship with funds 
provided under this title shall through their respective school, 
university, or institution, advise the Director of the office 
established by this title of progress towards completion of the course 
of studies and upon the awarding of the degree within 30 days after the 
award.
    (f) To carry out this section, the schools, universities, and 
institutions that are eligible to receive funding under this title 
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 (d). An 
institution seeking funds under this subsection shall describe, in its 
application to the Secretary for funding, the number of students that 
would be awarded scholarships or fellowships if the application is 
approved, how such students would be selected, and how the provisions 
of this section will be enforced.

SEC. 1105. USE OF FUNDS BY INSTITUTIONS.

    (a) Grants for basic science and engineering studies and research 
shall not require additional participation by funding partners. All 
other grants for studies shall include participation by industry and 
may include funding from other Federal agencies.
    (b) 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.
    (c) Funding made available may be used with the express approval of 
the Secretary for proposals to maintain or upgrade existing 
laboratories and laboratory equipment, but such funds shall not be used 
for any university overhead expenses.
    (d) Funding made available under this title may be used for 
maintaining and upgrading mines and oil and gas drilling rigs owned by 
an eligible program or the school in which the program is located 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 for 5 
years prior to the date of enactment.
    (e) Each school shall have an officer appointed by its governing 
authority who shall receive and account for all funds paid under this 
title 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 title during the preceding fiscal year, and 
of its disbursements on schedules prescribed by the Secretary.
    (f) The schools, universities, and institutions receiving funding 
under this title shall make detailed reports to the Center on projects 
completed, in progress, or planned with funds provided under this 
title. All such reports shall be available to the public on not less 
than an annual basis through the Center.
    (g) All uses, products, processes, and other developments resulting 
from any research, demonstration, or experiment funded in whole or in 
part under this title shall be made available promptly to the general 
public, subject to exception or limitation, if any, as the Secretary 
may find necessary in the interest of national security, and subject to 
the applicable Federal law governing patents.

SEC. 1106. ESTABLISHMENT OF A NATIONAL CENTER.

    (a) There is established in the Department of the Interior an 
office to be known as the National Science and Technology Education 
Center (hereafter in this title referred to as the ``Center'') to 
administer the provisions of this title.
    (b) The Center shall answer directly to the Secretary and shall be 
located at a site on or near the campus of a school, college or 
university with a recognized program, to be determined by the Secretary 
after consultation with the Committee and the receipt of public 
comments.
    (c) There shall be a director of the Center who shall be a member 
of the Senior Executive Service, provided further that the position of 
the director shall be a career reserved position as defined in section 
3132(a)(8) of title 5, United States Code.
    (d) The director is authorized to appoint a deputy director and to 
employ such officers and employees as may be necessary to enable the 
Center to carry out its functions.
    (e) In carrying the Center's functions, the director shall provide 
professional and administrative staff support for the Committee, 
including recordkeeping and maintaining minutes of all Committee and 
subcommittee meetings, maintaining accurate records of funds disbursed 
for all scholarship and fellowship grants, research grants, and grants 
for career technical education purposes, preparing any regulations 
required to implement this title, conducting site visits at programs 
receiving funding under this title, and serving as a central repository 
for reports and clearing house for public information on research 
funded by this title.
    (f) The director or an employee of the Center shall be present at 
each meeting of the Committee or a subcommittee of the Committee.
    (g) As needed the director shall ascertain whether the requirements 
of this title have been met by recognized programs.
    (h) Each employee or contractor of the Center and each member of 
the Committee 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 
title.
    (i) Any employee, contractor, or member of the Committee with a 
financial relationship must recuse themselves from any recommendation 
or decision regarding the awarding of funds, scholarships or 
fellowships or any review, report, analysis, or investigation regarding 
compliance with the provisions of this title by a school, university, 
institution, or any individual.

SEC. 1107. STAKEHOLDER COMMITTEE ON SCIENCE AND TECHNOLOGY EDUCATION.

    (a) The Secretary shall appoint a Stakeholder Committee for Science 
and Technology Education (referred to in this title as the 
``Committee'') which shall be composed of--
            (1) the Assistant Secretary of the Interior responsible for 
        land and minerals management; and
            (2) not more than 18 other persons who are knowledgeable in 
        the fields of energy, petroleum, geothermal, mining and mineral 
        resources research, including two university leaders from a 
        school with at least one recognized program; a community or 
        technical college administrator, a tribal college 
        administrator; a career technical education educator; six 
        representatives equally distributed from the energy, 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 of the State geologists, and two 
        representatives of the general public. In making these 
        appointments, the Secretary shall consult with interested 
        groups.
    (b) The Chairman of the Committee may have present during meetings 
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.
    (c) The Secretary shall consult with the Committee on policy 
matters relating to carrying out this title and carefully consider its 
recommendations in such matters.
    (d) Committee members, other than officers or employees of Federal, 
State, or local governments, shall be, for each day (including travel 
time) during which they are performing Committee business, paid at a 
rate fixed by the Secretary but not in excess of the daily equivalent 
of the maximum rate of pay for level IV of the Executive Schedule under 
section 5136 of title 5, United States Code, and shall be fully 
reimbursed for travel, subsistence, and related expenses.
    (e) The Assistant Secretary of the Interior responsible for Land 
and Minerals management shall be the Chairman of the Committee. There 
shall also be a Vice Chairman elected by the Committee from among the 
members, who shall perform such duties as are determined to be 
appropriate by the committee, except that the Chairman must personally 
preside at all meetings of the full Committee. The Committee may 
organize itself into such subcommittees as the Committee may deem 
appropriate.
    (f) 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 and shall formulate and recommend a 
national plan for utilizing the fiscal resources provided under this 
title. 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 title.
    (g) The Committee shall make recommendations to the Secretary 
regarding both the long term and short term viability of the faculty at 
schools with recognized programs and may recommend the awarding of 
graduate fellowships and postdoctoral fellowships to those students who 
declare their intent to seek roles as future faculty at the domestic 
recognized programs.

SEC. 1108. CAREER TECHNICAL AND COMMUNITY COLLEGE EDUCATION.

    (a) The Secretary shall provide grants to support sustaining the 
operation or the development of programs in mining engineering 
technology, petroleum engineering technology, industrial engineering 
technology, or industrial technology that--
            (1) are focused on technology and its use in energy and 
        mineral production and related maintenance, operational safety, 
        or energy infrastructure protection and security;
            (2) prepare students for advanced or supervisory roles in 
        the mining industry or the petroleum industry; and
            (3) grant either an associate's degree or a baccalaureate 
        degree.
    (b)(1) The Secretary shall provide grants to sustain the operation 
or the development of programs, including joint apprenticeship programs 
authorized by Federal law, university, college or community college 
programs, secondary school vocational education programs, or career 
academy programs, that provide training for individuals seeking to 
enter the geothermal, petroleum, mining, or mineral mining industries.
    (2) The Secretary shall give particular consideration to supporting 
programs that provide training for a progressive career path in the 
industries listed in subsection (b).
    (3) The Secretary, after consultation with the Committee, may offer 
support to programs that grant degrees or certificates in programs that 
provide training in disciplines that provide essential support for the 
industries listed in subsection (b), including those listed in 
subsection (c) of this section even if those programs are not purposely 
designed to provide personnel for the industries listed in subsection 
(b) of this section.
    (c) The Secretary shall provide grants to support the operation or 
the development of programs of program of career technical education at 
a secondary school, offered cooperatively with a community college in 
one of the industrial sectors of--
            (1) agriculture, forestry, or fisheries;
            (2) utilities, particularly power transmission and pipeline 
        construction and operations;
            (3) maintenance and maintenance logistics;
            (4) construction;
            (5) manufacturing; or
            (6) transportation and warehousing.
    (d) 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.
    (e) Schools seeking funds to support the operation of a program may 
initially only use those funds for enhancing the instructional skills 
of teachers through additional training and resources as will permit 
such teachers to enhance their skills. After the teachers have achieved 
enhanced skills and meets an appropriate standard as agreed to by local 
authorities in consultation with the Secretary the funds be used to 
purchase classroom and laboratory equipment.
    (f) Schools seeking funds to support the development of a new 
program shall use the funds to support the purchase of classroom and 
laboratory equipment and to supplement teacher salaries to encourage 
the hiring of highly qualified teachers.
    (g) 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.
    (h) 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.
    (i) The Secretary shall seek the advice of the Committee in 
determining the criteria used to carry out this section.

SEC. 1109. NUCLEAR SCIENCE AND ENGINEERING SCHOLARSHIPS.

    (a) Purpose.--It is the purpose of this section to authorize 
scholarships funded by the Department of Energy for undergraduate 
education in nuclear science and nuclear engineering.
    (b) Scholarship Program Authorized.--
            (1) In general.--The Secretary of Energy shall award not 
        less than 65 grants per year to eligible undergraduate 
        institutions to support scholarships for students majoring in 
        nuclear science or nuclear engineering.
            (2) Application.--An eligible undergraduate institution 
        that desires to receive a grant under this section shall submit 
        to the Secretary of Energy an application at such time, in such 
        manner, and accompanied by such information as the Secretary 
        may require.
            (3) Duration and amount.--A grant under this section shall 
        be 4 years in duration. An eligible undergraduate institution 
        that receives a grant under this section shall receive $100,000 
        for each year of the grant period.
            (4) Use of funds.--An eligible undergraduate institution 
        that receives a grant under this section shall use the grant 
        funds for the awarding of scholarships in nuclear science or 
        nuclear engineering.

SEC. 1110. NUCLEAR WORKFORCE DEVELOPMENT.

    Not later than 120 days after the date of enactment of this Act, 
the Secretary of Energy, in consultation with the Secretary of Labor, 
shall provide to Congress recommendations for developing a robust 
nuclear workforce within the United States.

SEC. 1111. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this title 5 
percent of all funds available within the American Energy Trust Fund 
for each of fiscal years 2009 through 2019 and all funds that are 
authorized shall remain available until expended.

         TITLE XII--TAPPING AMERICA'S INGENUITY AND CREATIVITY

SEC. 1201. DEFINITIONS.

    In this title:
            (1) Administering entity.--The term ``administering 
        entity'' means the entity with which the Secretary enters into 
        an agreement under section 1204(c).
            (2) Department.--The term ``Department'' means the 
        Department of Energy.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

SEC. 1202. STATEMENT OF POLICY.

    It is the policy of the United States to provide incentives to 
encourage the development and implementation of innovative energy 
technologies and new energy sources that will reduce our reliance on 
foreign energy.

SEC. 1203. PRIZE AUTHORITY.

    (a) In General.--The Secretary shall carry out a program to 
competitively award cash prizes in conformity with this title to 
advance the research, development, demonstration, and commercial 
application of innovative energy technologies and new energy sources.
    (b) Advertising and Solicitation of Competitors.--
            (1) Advertising.--The Secretary shall widely advertise 
        prize competitions to encourage broad participation in the 
        program carried out under subsection (a), including 
        individuals, universities, communities, and large and small 
        businesses.
            (2) Announcement through federal register notice.--The 
        Secretary shall announce each prize competition by publishing a 
        notice in the Federal Register. This notice shall include 
        essential elements of the competition such as the subject of 
        the competition, the duration of the competition, the 
        eligibility requirements for participation in the competition, 
        the process for participants to register for the competition, 
        the amount of the prize, and the criteria for awarding the 
        prize.
    (c) Administering the Competition.--The Secretary may enter into an 
agreement with a private, nonprofit entity to administer the prize 
competitions, subject to the provisions of this title. The 
administering entity shall perform the following functions:
            (1) Advertise the competition and its results.
            (2) Raise funds from private entities and individuals to 
        pay for administrative costs and cash prizes.
            (3) Develop, in consultation with and subject to the final 
        approval of the Secretary, criteria to select winners based 
        upon the goal of safely and adequately storing nuclear used 
        fuel.
            (4) Determine, in consultation with and subject to the 
        final approval of the Secretary, the appropriate amount of the 
        awards.
            (5) Protect against the administering entity's unauthorized 
        use or disclosure of a registered participant's intellectual 
        property, trade secrets, and confidential business information. 
        Any information properly identified as trade secrets or 
        confidential business information that is submitted by a 
        participant as part of a competitive program under this title 
        may be withheld from public disclosure.
            (6) Develop and promulgate sufficient rules to define the 
        parameters of designing and proposing innovative energy 
        technologies and new energy sources with input from industry, 
        citizens, and corporations familiar with such activities.
    (d) Funding Sources.--Prizes under this title may consist of 
Federal appropriated funds, funds provided by the administering entity, 
or funds raised through grants or donations. The Secretary may accept 
funds from other Federal agencies for such cash prizes and, 
notwithstanding section 3302(b) of title 31, United States Code, may 
use such funds for the cash prize program. Other than publication of 
the names of prize sponsors, the Secretary may not give any special 
consideration to any private sector entity or individual in return for 
a donation to the Secretary or administering entity.
    (e) Announcement of Prizes.--The Secretary may not publish a notice 
required by subsection (b)(2) until all the funds needed to pay out the 
announced amount of the prize have been appropriated to the Department 
or the Department has received from the administering entity a written 
commitment to provide all necessary funds.

SEC. 1204. ELIGIBILITY.

    To be eligible to win a prize under this title, an individual or 
entity--
            (1) shall notify the administering entity of intent to 
        submit ideas and intent to collect the prize upon selection;
            (2) shall comply with all the requirements stated in the 
        Federal Register notice required under section 1203(b)(2);
            (3) in the case of a private entity, shall be incorporated 
        in and maintain a primary place of business in the United 
        States, and in the case of an individual, whether participating 
        singly or in a group, shall be a citizen of the United States;
            (4) shall not be a Federal entity, a Federal employee 
        acting within the scope of his or her employment, or an 
        employee of a national laboratory acting within the scope of 
        employment;
            (5) shall not use Federal funding or other Federal 
        resources to compete for the prize; and
            (6) shall not be an entity acting on behalf of any foreign 
        government or agent.

SEC. 1205. INTELLECTUAL PROPERTY.

    The Federal Government shall not, by virtue of offering or awarding 
a prize under this title, be entitled to any intellectual property 
rights derived as a consequence of, or in direct relation to, the 
participation by a registered participant in a competition authorized 
by this title. This section shall not be construed to prevent the 
Federal Government from negotiating a license for the use of 
intellectual property developed for a prize competition under this 
title. The Federal Government may seek assurances that technologies for 
which prizes are awarded under this title are offered for 
commercialization in the event an award recipient does not take, or is 
not expected to take within a reasonable time, effective steps to 
achieve practical application of the technology.

SEC. 1206. WAIVER OF LIABILITY.

    The Secretary may require registered participants to waive claims 
against the Federal Government and the administering entity (except 
claims for willful misconduct) for any injury, death, damage, or loss 
of property, revenue, or profits arising from the registered 
participants' participation in a competition under this title. The 
Secretary shall give notice of any waiver required under this section 
in the notice required by section 1203(b)(2). The Secretary may not 
require a registered participant to waive claims against the 
administering entity arising out of the unauthorized use or disclosure 
by the administering entity of the registered participant's 
intellectual property, trade secrets, or confidential business 
information.

SEC. 1207. AUTHORIZATION OF APPROPRIATIONS.

    (a) Awards.--40 percent of amounts in the American Energy Trust 
Fund shall be available without further appropriation to carry out 
specified provisions of this section.
    (b) Treatment of Awards.--Amounts received pursuant to an award 
under this title may not be taxed by any Federal, State, or local 
authority.
    (c) Administration.--In addition to the amounts authorized under 
subsection (a), there are authorized to be appropriated to the 
Secretary for each of fiscal years 2009 through 2020 $2,000,000 for the 
administrative costs of carrying out this title.
    (d) Carryover of Funds.--Funds appropriated for prize awards under 
this title shall remain available until expended and may be 
transferred, reprogrammed, or expended for other purposes only after 
the expiration of 11 fiscal years after the fiscal year for which the 
funds were originally appropriated. No provision in this title permits 
obligation or payment of funds in violation of section 1341 of title 
31, United States Code.

SEC. 1208. NEXT GENERATION AUTOMOBILE PRIZE PROGRAM.

    The Secretary of Energy shall establish a program to award a prize 
in the amount of $500,000,000 to the first automobile manufacturer 
incorporated in the United States to manufacture and sell in the United 
States 50,000 midsized sedan automobiles which operate on gasoline and 
can travel 100 miles per gallon.

SEC. 1209. ADVANCED BATTERY MANUFACTURING INCENTIVE PROGRAM.

    (a) Definitions.--In this section:
            (1) Advanced battery.--The term ``advanced battery'' means 
        an electrical storage device suitable for vehicle applications.
            (2) Engineering integration costs.--The term ``engineering 
        integration costs'' includes the cost of engineering tasks 
        relating to--
                    (A) incorporation of qualifying components into the 
                design of advanced batteries; and
                    (B) design of tooling and equipment and developing 
                manufacturing processes and material suppliers for 
                production facilities that produce qualifying 
                components or advanced batteries.
    (b) Advanced Battery Manufacturing Facility.--The Secretary shall 
provide facility funding awards under this section to advanced battery 
manufacturers to pay not more than 30 percent of the cost of 
reequipping, expanding, or establishing a manufacturing facility in the 
United States to produce advanced batteries.
    (c) Period of Availability.--An award under subsection (b) shall 
apply to--
            (1) facilities and equipment placed in service before 
        December 30, 2020; and
            (2) engineering integration costs incurred during the 
        period beginning on the date of enactment of this Act and 
        ending on December 30, 2020.
    (d) Direct Loan Program.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this title, and subject to the availability of 
        appropriated funds, the Secretary shall carry out a program to 
        provide a total of not more than $100,000,000 in loans to 
        eligible individuals and entities (as determined by the 
        Secretary) for the costs of activities described in subsection 
        (b).
            (2) Selection of eligible projects.--The Secretary shall 
        select eligible projects to receive loans under this subsection 
        in cases in which, as determined by the Secretary, the award 
        recipient--
                    (A) is financially viable without the receipt of 
                additional Federal funding associated with the proposed 
                project;
                    (B) will provide sufficient information to the 
                Secretary for the Secretary to ensure that the 
                qualified investment is expended efficiently and 
                effectively; and
                    (C) has met such other criteria as may be 
                established and published by the Secretary.
            (3) Rates, terms, and repayment of loans.--A loan provided 
        under this subsection--
                    (A) shall have an interest rate that, as of the 
                date on which the loan is made, is equal to the cost of 
                funds to the Department of the Treasury for obligations 
                of comparable maturity;
                    (B) shall have a term equal to the lesser of--
                            (i) the projected life, in years, of the 
                        eligible project to be carried out using funds 
                        from the loan, as determined by the Secretary; 
                        and
                            (ii) 25 years;
                    (C) may be subject to a deferral in repayment for 
                not more than 5 years after the date on which the 
                eligible project carried out using funds from the loan 
                first begins operations, as determined by the 
                Secretary; and
                    (D) shall be made by the Federal Financing Bank.
    (e) Fees.--The cost of administering a loan made under this section 
shall not exceed $100,000.
    (f) Set Aside for Small Manufacturers.--
            (1) Definition of covered firm.--In this subsection, the 
        term ``covered firm'' means a firm that--
                    (A) employs fewer than 500 individuals; and
                    (B) manufactures automobiles or components of 
                automobiles.
            (2) Set aside.--Of the amount of funds used to provide 
        awards for each fiscal year under subsection (b), the Secretary 
        shall use not less than 10 percent to provide awards to covered 
        firms or consortia led by a covered firm.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated from the American Energy Trust Fund such sums as are 
necessary to carry out this section for each of fiscal years 2009 
through 2013.
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