[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6397 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6397

To amend title 38, United States Code, to make certain improvements in 
the basic educational assistance program administered by the Secretary 
              of Veterans Affairs, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 26, 2008

Mr. Hensarling introduced the following bill; which was referred to the 
 Committee on Veterans' Affairs, and in addition to the Committees on 
 Armed Services, Education and Labor, Oversight and Government Reform, 
    Energy and Commerce, Science and Technology, Transportation and 
Infrastructure, and Natural Resources, 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 amend title 38, United States Code, to make certain improvements in 
the basic educational assistance program administered by the Secretary 
              of Veterans Affairs, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
                  TITLE I--ENHANCED VETERANS BENEFITS

Sec. 101. Increase in amount of basic educational assistance.
Sec. 102. Extension of time limitation for use of eligibility and 
                            entitlement to educational assistance.
Sec. 103. Monthly stipend for recipients of educational assistance 
                            allowance.
Sec. 104. Extension of period for collection of fee for basic 
                            educational assistance.
Sec. 105. Use of educational assistance for business courses and 
                            seminars.
Sec. 106. Use of educational assistance for courses taken to prepare 
                            for licensing or certification tests.
Sec. 107. Use of educational assistance to repay Federal student loans.
Sec. 108. Opportunity to withdraw election not to enroll in educational 
                            assistance program.
Sec. 109. Montgomery GI Bill benefits not to reduce financial aid.
Sec. 110. Extension of increase in benefit for certain individuals 
                            pursuing apprenticeships or on-job 
                            training.
Sec. 111. Modification of amount available for reimbursement of State 
                            and local agencies administering veterans 
                            education benefits.
Sec. 112. Provision of basic educational assistance benefits for 
                            veterans discharged from active duty with 
                            general discharge.
Sec. 113. Increase in amount of reporting fee payable to educational 
                            institutions that enroll veterans receiving 
                            educational assistance.
Sec. 114. Provision of additional areas of work-study for veterans.
Sec. 115. 5-year pilot program for on-campus work-study positions.
Sec. 116. Increase in employees for Education Service.
Sec. 117. Upgrade of certain information technology.
Sec. 118. Modification of advance payment of initial educational 
                            assistance or subsistence allowance.
Sec. 119. Modification of period of eligibility applicable to certain 
                            spouses of individuals with service-
                            connected total disabilities permanent in 
                            nature.
Sec. 120. Consideration of additional contributions and payments in 
                            calculating entitlement charge for certain 
                            programs of education.
Sec. 121. Increase in amount of educational assistance for members of 
                            the Selected Reserve and reserve component 
                            members supporting contingency operations 
                            and certain other operations.
Sec. 122. Expansion of programs of education eligible for accelerated 
                            payments of educational assistance under 
                            laws administered by Secretary of Veterans 
                            Affairs.
               TITLE II--CIVIL SERVICE ENTITLEMENT REFORM

Sec. 201. Voucher plan for FEHBP.
Sec. 202. Government contributions for annuitants under FEHBP to be 
                            determined based on length of Government 
                            service.
Sec. 203. Benefits under CSRS and FERS to be computed based on modified 
                            definition of ``average pay''.
Sec. 204. Elimination of annuity supplement under FERS and related 
                            retirement systems.
       TITLE III--NATIONAL ENVIRONMENT AND ENERGY DEVELOPMENT ACT

Sec. 301. Short title.
Sec. 302. Termination of prohibitions on expenditures for, and 
                            withdrawals from, offshore gas leasing.
Sec. 303. Outer Continental Shelf natural gas leasing program.
Sec. 304. Natural gas leasing.
Sec. 305. Policies regarding buying and building American.
  TITLE IV--OIL AND GAS LEASING PROGRAM FOR LANDS WITHIN THE COASTAL 
                            PLAIN OF ALASKA

Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Leasing program for lands within the Coastal Plain.
Sec. 404. Lease sales.
Sec. 405. Grant of leases by the Secretary.
Sec. 406. Lease terms and conditions.
Sec. 407. Coastal plain environmental protection.
Sec. 408. Expedited judicial review.
Sec. 409. Federal and State distribution of revenues.
Sec. 410. Rights-of-way across the Coastal Plain.
Sec. 411. Conveyance.
Sec. 412. Local government impact aid and community service assistance.
Sec. 413. ANWR Alternative Energy Trust Fund.

                  TITLE I--ENHANCED VETERANS BENEFITS

SEC. 101. INCREASE IN AMOUNT OF BASIC EDUCATIONAL ASSISTANCE.

    Section 3015 of title 38, United States Code, is amended--
            (1) in subsection (a)(1)--
                    (A) in subparagraph (A), by striking ``January 1, 
                2002, $800'' and inserting ``January 1, 2009, $1,450'';
                    (B) by striking subparagraphs (B) and (C); and
                    (C) by redesignating subparagraph (D) as 
                subparagraph (B); and
            (2) in subsection (b)(1)--
                    (A) in subparagraph (A), by striking ``January 1, 
                2002, $650'' and inserting ``January 1, 2009, $1,250'';
                    (B) by striking subparagraphs (B) and (C); and
                    (C) by redesignating subparagraph (D) as 
                subparagraph (B).

SEC. 102. EXTENSION OF TIME LIMITATION FOR USE OF ELIGIBILITY AND 
              ENTITLEMENT TO EDUCATIONAL ASSISTANCE.

    (a) Extension of Time Limitation.--Section 3031 of title 38, United 
States Code, is amended--
            (1) by striking ``10-year period'' each place it appears 
        and inserting ``15-year period''; and
            (2) in subsection (a)--
                    (A) in paragraph (1), by inserting ``and'' after 
                the semicolon;
                    (B) in paragraph (2), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking paragraph (3).
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to an individual who is entitled to educational 
assistance under chapter 30 of such title on the date that is 90 days 
after the date of the enactment of this Act or who becomes entitled to 
educational assistance under such chapter after such date.

SEC. 103. MONTHLY STIPEND FOR RECIPIENTS OF EDUCATIONAL ASSISTANCE 
              ALLOWANCE.

    (a) Entitlement to Monthly Stipend.--Subchapter II of chapter 30 of 
title 38, United States Code, is amended by adding at the end the 
following new section:
``Sec. 3020A. Educational stipend
    ``(a) Entitlement.--Each individual who is receiving educational 
assistance under this chapter and who is pursuing a program of 
education at an institution of higher learning (as such term is defined 
in section 3452(f) of this title) is entitled to an educational stipend 
under this section.
    ``(b) Amount of Stipend.--An educational stipend under this section 
shall be paid to an individual who is entitled to such a stipend--
            ``(1) in the case of an individual pursuing an approved 
        program of education on at least a half-time basis, at the 
        monthly rate of $500; and
            ``(2) in the case of an individual pursuing an approved 
        program of education on less than a half-time basis, at the 
        monthly rate of $250.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end of the items relating to 
subchapter II the following new item:

``3020A. Educational stipend.''.
    (c) Effective Date.--Section 3020A of title 38, United States Code, 
as added by subsection (a) shall take effect on the date that is two 
years after the date of the enactment of this Act and shall apply with 
respect to months beginning after that date.

SEC. 104. EXTENSION OF PERIOD FOR COLLECTION OF FEE FOR BASIC 
              EDUCATIONAL ASSISTANCE.

    (a) Basic Educational Assistance for Service on Active Duty.--
Section 3011(b)(1) of title 38, United States Code, is amended--
            (1) by striking ``$100'' and inserting ``$50''; and
            (2) by striking ``12'' and inserting ``24''.
    (b) Basic Educational Assistance for Service in the Selected 
Reserve.--Section 3012(c)(1) of such title is amended--
            (1) by striking ``$100'' and inserting ``$50''; and
            (2) by striking ``12'' and inserting ``24''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date that is 90 days after the date of the enactment of 
this Act.

SEC. 105. USE OF EDUCATIONAL ASSISTANCE FOR BUSINESS COURSES AND 
              SEMINARS.

    (a) In General.--The Secretary of Veterans Affairs shall ensure 
that individuals entitled to educational assistance under laws 
administered by the Secretary are entitled to use such assistance for 
business courses and seminars, if such courses or seminars are related 
to the operation of a business, and for continuing education courses. 
The Secretary shall treat the courses referred to in the preceding 
sentence in a similar manner as licensing and certification courses.
    (b) Effective Date.--Subsection (a) shall take effect on the date 
that is two years after the date of the enactment of this Act.

SEC. 106. USE OF EDUCATIONAL ASSISTANCE FOR COURSES TAKEN TO PREPARE 
              FOR LICENSING OR CERTIFICATION TESTS.

    (a) Basic Educational Assistance.--Section 3452(b) of title 38, 
United States Code, is amended by inserting after the fourth sentence 
the following new sentence: ``Such term also includes preparatory 
courses for licensing or certification tests described in the preceding 
sentence, as designated by the Secretary.''.
    (b) Survivors' and Dependents' Educational Assistance.--Section 
3501(a)(5) of title 38, United States Code, is amended by inserting 
after the second sentence the following new sentence: ``Such term also 
includes preparatory courses for licensing or certification tests 
described in the preceding sentence, as designated by the Secretary.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on the date that 2 years after the date of the 
enactment of this Act.

SEC. 107. USE OF EDUCATIONAL ASSISTANCE TO REPAY FEDERAL STUDENT LOANS.

    (a) In General.--Subchapter II of chapter 30 of title 38, United 
States Code, as amended by section 103, is further amended by inserting 
after section 3020A the following new section:
``Sec. 3020B. Use of educational assistance benefits for the repayment 
              of Federal student loans for certain courses of education
    ``(a) Use of Benefits.--Notwithstanding any other provision of this 
chapter, and subject to subsections (b) through (e), an individual who 
is serving on active duty and who is entitled to educational assistance 
under this subchapter may apply amounts of such educational assistance 
otherwise available to the individual to repay some or all of any 
Federal student loan balance owed by the individual for a course of 
education pursued by the individual.
    ``(b) Limitations on Payments.--(1) The amount of an individual's 
entitlement to educational assistance that the individual may apply to 
the repayment of a student loan balance under subsection (a) may not 
exceed $6,000 in any 12-month period.
    ``(2) In no event shall payment of educational assistance under 
this section exceed the amount of the individual's available 
entitlement under this chapter.
    ``(3) An individual entitled to educational assistance under this 
subchapter may not apply such educational assistance to any of the 
following:
            ``(A) A loan made to the parents of a dependent student 
        under section 428B of the Higher Education Act of 1965.
            ``(B) A Federal Direct PLUS Loan made to the parents of a 
        dependent student.
            ``(C) A loan made under section 428C or 455(g) of such Act, 
        to the extent that such loan was used to repay--
                    ``(i) a loan made to the parent of a dependent 
                student under section 428B of such Act;
                    ``(ii) a Federal Direct PLUS Loan made to the 
                parents of a dependent student.
    ``(c) Amount of Payments.--The Secretary shall make monthly 
payments under this section in such amounts as the individual may elect 
for the repayment of a Federal student loan of such an individual.
    ``(d) Arrangements to Make Payments.--The Secretary shall enter 
into such arrangements, and shall prescribe such regulations, as may be 
necessary to carry out this section.
    ``(e) Federal Student Loan Defined.--In this section, the term 
`Federal student loan' means any loan made under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et seq.).''.
    (b) Clerical Amendment.--The table of sections of subchapter II of 
chapter 30 of such title is amended by inserting after the item 
relating to section 3020 the following new item:

``3020B. Use of educational assistance benefits for the repayment of 
                            Federal student loans for certain courses 
                            of education.''.
    (c) Effective Date.--Section 3020B of title 38, United States Code, 
as added by subsection (a) shall apply with respect to educational 
assistance paid for months beginning after the date that is two years 
after the date of the enactment of this Act.

SEC. 108. OPPORTUNITY TO WITHDRAW ELECTION NOT TO ENROLL IN EDUCATIONAL 
              ASSISTANCE PROGRAM.

    (a) Basic Educational Assistance for Active Duty Service.--
            (1) Opportunity to withdraw.--Subsection (c) of section 
        3011 of title 38, United States Code, is amended by adding at 
        the end the following new paragraph:
    ``(4) An individual who makes an election not to receive 
educational assistance under paragraph (1) may withdraw that election 
at any time and, after making such withdrawal, shall be entitled to 
educational assistance under this chapter in the same manner as if the 
individual had never made that election, if--
            ``(A) at the time the individual makes such withdrawal, the 
        individual is serving on active duty as a member of the Armed 
        Forces; and
            ``(B) the basic pay of the individual is reduced by, or the 
        individual otherwise pays to the Secretary, $1,200 by not later 
        than 90 days after the date on which the individual is 
        discharged or released from active duty in the Armed Forces.''.
            (2) Conforming amendment.--Paragraph (1) of such subsection 
        is amended in the third sentence by striking ``Any individual'' 
        and inserting ``Except as provided in paragraph (4), any 
        individual''.
    (b) Basic Educational Assistance for Service in the Selected 
Reserve.--
            (1) Opportunity to withdraw.--Subsection (d) of section 
        3012 of title 38, United States Code, is amended by adding at 
        the end the following new paragraph:
    ``(4) An individual who makes an election not to receive 
educational assistance under paragraph (1) may withdraw that election 
at any time and, after making such withdrawal, shall be entitled to 
educational assistance under this chapter in the same manner as if the 
individual had never made that election, if--
            ``(A) at the time the individual makes such withdrawal, the 
        individual is serving on active duty as a member of the Armed 
        Forces; and
            ``(B) the basic pay of the individual is reduced by, or the 
        individual otherwise pays to the Secretary, $1,200 by not later 
        than 90 days after the date on which the individual is 
        discharged or released from active duty in the Armed Forces.''.
            (2) Conforming amendment.--Paragraph (1) of such subsection 
        is amended in the third sentence by striking ``Any individual'' 
        and inserting ``Except as provided in paragraph (4), any 
        individual''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on the date that is 90 days after the date of the 
enactment of this Act and shall apply with respect to an individual who 
is serving on active duty as a member of the Armed Forces on or after 
that date.

SEC. 109. MONTGOMERY GI BILL BENEFITS NOT TO REDUCE FINANCIAL AID.

    (a) In General.--Section 480(j) of the Higher Education Act of 1965 
(20 U.S.C. 1087vv(j)) Act is amended--
            (1) in paragraph (1), by striking ``including veterans' 
        education benefits as defined in subsection (c),'' and 
        inserting ``including, subject to paragraph (4), veterans' 
        education benefits as defined in subsection (c),''; and
            (2) by adding at the end the following new paragraph:
    ``(4) Notwithstanding paragraph (1), estimated financial assistance 
not received under this title shall not include any veterans' benefits 
paid under chapter 30 of title 38, United States Code.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date that is 90 days after the date of the enactment 
of this Act.

SEC. 110. EXTENSION OF INCREASE IN BENEFIT FOR CERTAIN INDIVIDUALS 
              PURSUING APPRENTICESHIPS OR ON-JOB TRAINING.

    (a) Members of the Selected Reserve.--Subsection (d) of section 103 
of the Veterans Earn and Learn Act of 2004 (Public Law 108-454; 38 
U.S.C. 3032 note) is amended by striking ``January 1, 2008'' and 
inserting ``January 1, 2014''.
    (b) Survivors and Dependents.--Subsection (c) of such section is 
amended by striking ``January 1, 2008'' and inserting ``January 1, 
2014''.
    (c) Certain Other Individuals.--Subsection (a) of such section is 
amended by striking ``January 1, 2008'' and inserting ``January 1, 
2014''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date that is 90 days after the date of the enactment of 
this Act.

SEC. 111. MODIFICATION OF AMOUNT AVAILABLE FOR REIMBURSEMENT OF STATE 
              AND LOCAL AGENCIES ADMINISTERING VETERANS EDUCATION 
              BENEFITS.

    Section 3674(a)(4) of title 38, United States Code, is amended by 
striking ``may not exceed $13,000,000'' and all that follows through 
the end and inserting ``shall be $19,000,000''.

SEC. 112. PROVISION OF BASIC EDUCATIONAL ASSISTANCE BENEFITS FOR 
              VETERANS DISCHARGED FROM ACTIVE DUTY WITH GENERAL 
              DISCHARGE.

    (a) Active Duty Service.--Section 3011(a)(3)(B) of title 38, United 
States Code, is amended by inserting ``or a general discharge (under 
honorable conditions)'' before the period at the end.
    (b) Service in Selected Reserve.--Section 3012(a)(3)(A) of such 
title is amended by inserting ``or a general discharge (under honorable 
conditions)'' before the semicolon.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply with respect to an individual who is discharged from 
service in the Armed Forces after the date that is 90 days after the 
date of the enactment of this Act.

SEC. 113. INCREASE IN AMOUNT OF REPORTING FEE PAYABLE TO EDUCATIONAL 
              INSTITUTIONS THAT ENROLL VETERANS RECEIVING EDUCATIONAL 
              ASSISTANCE.

    (a) Increase in Amount of Fee.--Subsection (c) of section 3684 of 
title 38, United States Code, is amended--
            (1) by striking ``$7'' and inserting ``$21''; and
            (2) by striking ``$11'' and inserting ``$21''.
    (b) Technical Correction.--Subsection (a) of such section is 
amended by striking the second comma after ``34''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall take effect on the date that is 90 days after the date of the 
enactment of this Act.

SEC. 114. PROVISION OF ADDITIONAL AREAS OF WORK-STUDY FOR VETERANS.

    (a) In General.--Subsection (a)(4) of section 3485 of title 38, 
United States Code, is amended by adding at the end the following new 
subparagraph:
            ``(G) The provision of placement services described in 
        section 3104(a)(5) of this title at an educational institution 
        carried out under the supervision of a Department employee.''.
    (b) Work Study for Students Enrolled on Half-Time Basis.--
Subsection (b) of such section is amended--
            (1) in the first sentence, by striking ``three-quarters'' 
        and inserting ``half''; and
            (2) in the third sentence, by striking ``three-quarter-
        time'' and inserting ``half-time''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to agreements entered into under section 3485 of 
title 38, United States Code, after the date that is 90 days after the 
date of the enactment of this Act.

SEC. 115. 5-YEAR PILOT PROGRAM FOR ON-CAMPUS WORK-STUDY POSITIONS.

    (a) Establishment of Pilot Program.--Beginning not later than two 
years after the date of the enactment of this Act, the Secretary of 
Veterans Affairs shall conduct a five-year pilot project to test the 
feasibility and advisability of expanding the scope of qualifying work-
study activities under subsection (a)(4) of section 3485 of title 38, 
United States Code, including work-study positions available on site at 
educational institutions.
    (b) Type of Work-Study Positions.--The work-study positions 
referred to in subsection (a) may include positions in academic 
departments (including positions as tutors or research, teaching, and 
lab assistants) and in student services (including positions in career 
centers and financial aid, campus orientation, cashiers, admissions, 
records, and registration offices).
    (c) Regulations.--The Secretary shall prescribe regulations to 
carry out the pilot project under this section, including regulations 
providing for the supervision of work-study positions referred to in 
subsection (a) by appropriate personnel.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary $10,000,000 for each of the fiscal years 
during which the Secretary carries out the pilot project under this 
section.

SEC. 116. INCREASE IN EMPLOYEES FOR EDUCATION SERVICE.

    The Secretary of Veterans Affairs shall increase the number of 
full-time employees of the Education Service of the Department of 
Veterans Affairs by 150 additional such employees.

SEC. 117. UPGRADE OF CERTAIN INFORMATION TECHNOLOGY.

    (a) Action Plan Required.--The Chief Information Officer of the 
Department of Veterans Affairs, in coordination with the Director of 
the Department of Veterans Affairs Education Service, shall submit to 
the Committees on Veterans' Affairs of the Senate and House of 
Representatives and action plan describing how the Chief Information 
Officer and Director of the Department of Veterans Affairs Education 
Service intend to upgrade the information technology system of the 
Department of Veteran Affairs that is used in connection with the 
administration of educational benefits under laws administered by the 
Secretary of Veterans Affairs. The Chief Information Officer and 
Director of the Department of Veterans Affairs Education Service shall 
update the committees at least annually on any progress made in 
upgrading such system.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to upgrade the information technology system of the 
Department of Veteran Affairs that is used in connection with the 
administration of educational benefits under laws administered by the 
Secretary of Veterans Affairs--
            (1) $8,000,000 for fiscal year 2009; and
            (2) $3,000,000 for each of fiscal years 2010, 2011, and 
        2012.

SEC. 118. MODIFICATION OF ADVANCE PAYMENT OF INITIAL EDUCATIONAL 
              ASSISTANCE OR SUBSISTENCE ALLOWANCE.

    (a) Modification.--Section 3680(d)(2) of title 38, United States 
Code, is amended by inserting after the third sentence the following 
new sentence: ``For purposes of the entitlement to educational 
assistance of the veteran or person receiving an advance payment under 
this subsection, the advance payment shall be charged against the final 
month of the entitlement of the person or veteran and, if necessary, 
the penultimate such month. In no event may any veteran or person 
receive more than one advance payment under this subsection during any 
academic year.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to an advance payment of educational assistance made 
after the date that is 90 days after the date of the enactment of this 
Act.

SEC. 119. MODIFICATION OF PERIOD OF ELIGIBILITY APPLICABLE TO CERTAIN 
              SPOUSES OF INDIVIDUALS WITH SERVICE-CONNECTED TOTAL 
              DISABILITIES PERMANENT IN NATURE.

    Section 3512(b)(1) of title 38, United States Code, is amended--
            (1) in subparagraph (A), by striking ``subparagraph (B) or 
        (C)'' and inserting ``subparagraphs (B), (C), and (D)''; and
            (2) by adding at the end the following new subparagraph:
    ``(D) Notwithstanding subparagraph (A), an eligible person referred 
to in that subparagraph who is made eligible under section 
3501(a)(1)(D)(i) of this title by reason of a service-connected 
disability that was determined to be a total disability permanent in 
nature not later than three years after discharge from service may be 
afforded educational assistance under this chapter during the 20-year 
period beginning on the date the disability was so determined to be a 
total disability permanent in nature, but only if the eligible person 
remains the spouse of the disabled person throughout the period.''.

SEC. 120. CONSIDERATION OF ADDITIONAL CONTRIBUTIONS AND PAYMENTS IN 
              CALCULATING ENTITLEMENT CHARGE FOR CERTAIN PROGRAMS OF 
              EDUCATION.

    (a) Tuition Assistance.--Section 3014(b)(2)(C) is amended by 
striking ``or (e)(1) of section 3015 of this title,'' and inserting 
``(e)(1), or (g) of section 3015 of this title, or section 16131(i) of 
title 10,''.
    (b) Flight Training.--Section 3032(e)(3) is amended by striking 
``or (e)(1) of section 3015 of this title,'' and inserting ``(e)(1), or 
(g) of section 3015 of this title, or section 16131(i) of title 10,''.
    (c) Licensing and Certification Tests.--Section 3032(f)(2) is 
amended by striking ``or (e)(1) of section 3015 of this title,'' and 
inserting ``(e)(1), or (g) of section 3015 of this title, or section 
16131(i) of title 10,''.

SEC. 121. INCREASE IN AMOUNT OF EDUCATIONAL ASSISTANCE FOR MEMBERS OF 
              THE SELECTED RESERVE AND RESERVE COMPONENT MEMBERS 
              SUPPORTING CONTINGENCY OPERATIONS AND CERTAIN OTHER 
              OPERATIONS.

    (a) Members of the Selected Reserve.--Section 16131(b) of title 10, 
United States Code, is amended--
            (1) in paragraph (1), by striking ``at the following 
        rates'' and all that follows through the end;
            (2) by striking paragraph (2);
            (3) by inserting after paragraph (1) the following new 
        paragraphs:
    ``(2) The educational assistance allowance provided under this 
subchapter shall be based on the applicable percent under paragraph (4) 
of the applicable rate provided under section 3015 of title 38 for a 
member whose entitlement is based on completion of an obligated period 
of active duty of 3 years.
    ``(3) The educational assistance allowance provided under this 
section for a person who is undertaking a program for which a reduced 
rate is specified in chapter 30 of such title, that rate shall be 
further adjusted by the applicable percent specified in paragraph (4).
    ``(4) The adjusted educational assistance allowance under paragraph 
(2) or (3), as applicable, shall be 47 percent.''.
    (b) Reserve Component Members Supporting Contingency Operations and 
Certain Other Operations.--Paragraph (4) of section 16162(c) of title 
10, United States Code, is amended to read as follows:
    ``(4) The adjusted educational assistance allowance under paragraph 
(2) or (3), as applicable, shall be--
            ``(A) 50 percent in the case of a member of a reserve 
        component who performed active service for 90 cumulative days 
        but less than 180 cumulative days;
            ``(B) 55 percent in the case of a member of a reserve 
        component who performed active service for 180 cumulative days 
        but less than 365 cumulative days;
            ``(C) 60 percent in the case of a member of a reserve 
        component who performed active service for 365 cumulative days 
        but less than 545 cumulative days;
            ``(D) 70 percent in the case of a member of a reserve 
        component who performed active service for 545 cumulative days 
        but less than 730 cumulative days;
            ``(E) 80 percent in the case of a member of a reserve 
        component who performed active service for 730 cumulative days 
        but less than 910 cumulative days;
            ``(F) 90 percent in the case of a member of a reserve 
        component who performed active service for 910 cumulative days 
        but less than 1095 cumulative days; and
            ``(G) 100 percent in the case of a member of a reserve 
        component who performed active service for 1095 cumulative days 
        or more.''.

SEC. 122. EXPANSION OF PROGRAMS OF EDUCATION ELIGIBLE FOR ACCELERATED 
              PAYMENTS OF EDUCATIONAL ASSISTANCE UNDER LAWS 
              ADMINISTERED BY SECRETARY OF VETERANS AFFAIRS.

    (a) Commercial Driver's License Training Programs.--Subsection 
(b)(1) of section 3014A of title 38, United States Code, is amended--
            (1) by inserting ``(A)'' after ``that leads to''; and
            (2) by inserting before the semicolon at the end the 
        following: ``or (B) employment as an operator of a commercial 
        motor vehicle (as defined in section 31301(4) of title 49)''.
    (b) Conforming Amendments.--
            (1) Heading.--The heading of section 3014A of such title is 
        amended by adding at the end the following: ``and employment in 
        certain other occupations''.
            (2) Table of sections.--The table of sections at the 
        beginning of chapter 30 of such title is amended in the item 
        relating to section 3014A by inserting before the period at the 
        end the following:

``and employment in certain other occupations''.

               TITLE II--CIVIL SERVICE ENTITLEMENT REFORM

SEC. 201. VOUCHER PLAN FOR FEHBP.

    (a) In General.--Section 8906(b) of title 5, United States Code, is 
amended to read as follows:
    ``(b)(1) Except as otherwise provided in this subsection, the 
maximum annual Government contribution for an employee or annuitant 
enrolled in a health benefits plan under this chapter is, for any year 
beginning after 2009, equal to--
            ``(A) $3,600 in the case of an employee or annuitant 
        enrolled for self alone; and
            ``(B) $8,400 in the case of an employee or annuitant 
        enrolled for self and family.
    ``(2)(A) In the case of each year beginning after 2010, each of the 
dollar amounts in paragraph (1) shall be increased by an amount equal 
to--
            ``(i) such dollar amount, multiplied by
            ``(ii) the cost-of-living adjustment for such year.
    ``(B) For purposes of subparagraph (A), the cost-of-living 
adjustment for any year is the percentage (if any) by which--
            ``(i) the CPI for the preceding year, exceeds
            ``(ii) the CPI for 2009.
    ``(C) For purposes of subparagraph (B), the CPI for any year is the 
average of the Consumer Price Index for the 12-month period ending on 
June 30 of such year.
    ``(D) For purposes of subparagraph (C), the term `Consumer Price 
Index' means the Consumer Price Index (all items-United States city 
average) published monthly by the Bureau of Labor Statistics.
    ``(E) If any increase determined under subparagraph (A) is not a 
multiple of $50, such increase shall be rounded to the next lowest 
multiple of $50.
    ``(3) The biweekly Government contribution for an employee or 
annuitant enrolled in a health benefits plan under this chapter shall 
be the amount equal to--
            ``(A) the amount of the biweekly subscription charge, 
        multiplied by
            ``(B) the lesser of--
                    ``(i) the percentage determined by dividing the 
                dollar amount specified in paragraph (1)(A) or (1)(B) 
                (as applicable) by the total annual subscription 
                charge, or
                    ``(ii) 75 percent.
    ``(4) In the case of an employee who is occupying a position on a 
part-time career employment basis (as defined in section 3401(2)), the 
biweekly Government contribution shall be equal to the amount which 
bears the same ratio to the amount determined under paragraph (3) as 
the average number of hours in such employee's regularly scheduled 
workweek bears to the average number of hours in the regularly 
scheduled workweek of an employee serving in a comparable position on a 
full-time career basis (as determined under regulations prescribed by 
the Office).
    ``(5) For an employee, the Government contribution computed under 
this subsection with respect to a year begins on the first day of the 
employee's first pay period of each year. For an annuitant, the 
Government contribution begins on the first day of the first period of 
the year for which an annuity payment is made.''.
    (b) Conforming Amendment.--Section 8906(a) of title 5, United 
States Code, is repealed.
    (c) Savings Provisions.--
            (1) In general.--For the purposes described in paragraph 
        (2), the provisions of chapter 89 of title 5, United States 
        Code, shall be applied as if the amendments made by this 
        section had not been enacted.
            (2) Purposes described.--Paragraph (1) shall apply for 
        purposes of determining the individual and Government 
        contributions payable--
                    (A) for any period before the first day of the 
                first applicable pay or other period beginning in 2010, 
                in the case of any individual; and
                    (B) for any period beginning on or after the first 
                day described in subparagraph (A), in the case of any 
                individual who, as of the date of the enactment of this 
                Act--
                            (i) is enrolled in a health benefits plan 
                        under chapter 89 of such title 5 as an 
                        annuitant; or
                            (ii) would (but for being enrolled as a 
                        family member) be eligible under section 
                        8905(b) of such title for continued enrollment 
                        as an annuitant.

SEC. 202. GOVERNMENT CONTRIBUTIONS FOR ANNUITANTS UNDER FEHBP TO BE 
              DETERMINED BASED ON LENGTH OF GOVERNMENT SERVICE.

    Section 8906(b) of title 5, United States Code, as amended by 
section 201, is further amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following:
    ``(5)(A) In the case of an annuitant, the dollar amount specified 
in paragraph (1)(A) or (1)(B) (as applicable) shall be reduced by \1/6\ 
of 1 percent for each full month that--
            ``(i) in the case of an annuitant within the meaning of 
        subparagraph (A) or (C) of section 8901(3), the total amount of 
        creditable service performed by such annuitant is less than 20 
        years; and
            ``(ii) in the case of an annuitant within the meaning of 
        subparagraph (B) or (D) of section 8901(3), the total amount of 
        creditable service performed by the deceased employee or former 
        employee (as referred to in such subparagraph (B) or (D), as 
        applicable) is less than 20 years.
    ``(B) For purposes of subparagraph (A), the term `creditable 
service' means any employment creditable under section 8332 or 8411.
    ``(C) Nothing in this paragraph shall apply in the case of any 
individual who becomes an annuitant, within the meaning of section 
8901(3), before January 1, 2010.''.

SEC. 203. BENEFITS UNDER CSRS AND FERS TO BE COMPUTED BASED ON MODIFIED 
              DEFINITION OF ``AVERAGE PAY''.

    (a) In General.--Section 8331(4) of title 5, United States Code, is 
amended by striking ``3'' each place it appears and inserting ``5''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to any annuity which is payable based on a 
separation from service occurring after September 30, 2008.
    (c) Savings Provision.--For purposes of any annuity which is 
payable based on a separation from service occurring before October 1, 
2008, the provisions of section 8331(4) of title 5, United States Code, 
shall be applied as if the amendments made by subsection (a) had not 
been enacted.

SEC. 204. ELIMINATION OF ANNUITY SUPPLEMENT UNDER FERS AND RELATED 
              RETIREMENT SYSTEMS.

    (a) Supplements Under FERS.--Chapter 84 of title 5, United States 
Code, is amended--
            (1) by repealing sections 8421 and 8421a; and
            (2) by repealing subsection (f) of section 8442.
    (b) Supplement Under Foreign Service Pension System.--Subsection 
(c) of section 855 of the Foreign Service Act of 1980 (22 U.S.C. 
4071d(c)) is repealed.
    (c) Supplement Under Central Intelligence Agency Retirement and 
Disability System.--Paragraph (2) of section 305(c) of the Central 
Intelligence Agency Retirement Act (50 U.S.C. 2154(c)(2) is repealed.
    (d) Technical and Conforming Amendments.--(1) Section 
8349(a)(3)(B)(i)(II) of title 5, United States Code, is amended by 
striking ``section 8421(b)(3)'' and inserting ``section 8421(b)(3) (as 
last in effect)''.
    (2) The analysis for chapter 84 of title 5, United States Code, is 
amended by repealing the items relating to sections 8421 and 8421a, 
respectively.
    (e) Effective Date.--The amendments made by this section shall 
apply with respect to any individual whose entitlement to retirement 
benefits under the Federal Employees' Retirement System (or other 
retirement system) is based on a separation from service occurring on 
or after the date of the enactment of this Act.

       TITLE III--NATIONAL ENVIRONMENT AND ENERGY DEVELOPMENT ACT

SEC. 301. SHORT TITLE.

    This title may be cited as the ``National Environment and Energy 
Development Act''.

SEC. 302. TERMINATION OF PROHIBITIONS ON EXPENDITURES FOR, AND 
              WITHDRAWALS FROM, OFFSHORE GAS LEASING.

    (a) Prohibitions on Expenditures.--All provisions of Federal law 
that prohibit the expenditure of appropriated funds to conduct natural 
gas leasing and preleasing activities for any area of the Outer 
Continental Shelf shall have no force or effect with respect to such 
activities.
    (b) Revocation Withdrawals.--All withdrawals of Federal submerged 
lands of the Outer Continental Shelf from leasing, including 
withdrawals by the President under the authority of section 12(a) of 
the Outer Continental Shelf Lands Act (43 U.S.C. 1341(a)), are hereby 
revoked and are no longer in effect with respect to the leasing of 
areas for exploration for, and development and production of, natural 
gas.
    (c) Prohibitions and Withdrawals for Oil Not Affected.--This 
section does not affect--
            (1) any prohibition on the expenditure of appropriated 
        funds to conduct oil leasing or preleasing activities; and
            (2) any withdrawal of Federal submerged lands from leasing 
        for exploration for, and development and production of, oil.

SEC. 303. OUTER CONTINENTAL SHELF NATURAL GAS LEASING PROGRAM.

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

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

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

SEC. 304. NATURAL GAS LEASING.

    Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337) 
is further amended by adding at the end the following subsection:
    ``(r) Natural Gas Leasing.--
            ``(1) In general.--The Secretary may issue leases under 
        this section that authorize development and production of 
        natural gas and associated condensate in accordance with 
        regulations promulgated under paragraph (2).
            ``(2) Regulations.--Before issuing any lease under 
        paragraph (1), the Secretary must promulgate regulations that--
                    ``(A) define what constitutes natural gas, 
                condensate, and oil;
                    ``(B) establish the lessee's rights and obligations 
                regarding condensate produced in association with 
                natural gas;
                    ``(C) prescribe procedures and requirements that 
                the lessee of a lease issued under this subsection must 
                follow if the lessee discovers oil deposits in the 
                course of exploration or development; and
                    ``(D) establish such other requirements for natural 
                gas leases as the Secretary considers appropriate.
            ``(3) Application of other laws.--All provisions of this 
        Act or any other Federal law or regulations that apply to oil 
        and natural gas leases for the Outer Continental Shelf shall 
        apply to natural gas-only leases authorized under this 
        subsection.
            ``(4) Existing leases.--At the request of the lessee of an 
        oil and gas lease in effect under this section on the date of 
        enactment of this subsection, and under the requirements 
        prescribed in regulations promulgated under paragraph (2), the 
        Secretary may restrict development under such a lease to 
        natural gas and associated condensate.
            ``(5) Oil and gas leasing programs.--The Secretary may 
        include provisions regarding issuance of natural gas leases in 
        the outer Continental shelf leasing program that applies for 
        the 5-year period beginning in 2007, notwithstanding any draft 
        proposal for such program issued before the date of the 
        enactment of this subsection.
            ``(6) Prohibitions and withdrawals for oil not affected.--
        This subsection does not affect--
                    ``(A) any prohibition on the expenditure of 
                appropriated funds to conduct oil leasing or preleasing 
                activities; and
                    ``(B) any withdrawal of Federal submerged lands 
                from leasing for exploration for, and development and 
                production of, oil.''.

SEC. 305. POLICIES REGARDING BUYING AND BUILDING AMERICAN.

    (a) Intent of Congress.--It is the intent of the Congress that this 
title, 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 title 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 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''.

  TITLE IV--OIL AND GAS LEASING PROGRAM FOR LANDS WITHIN THE COASTAL 
                            PLAIN OF ALASKA

SECTION 401. SHORT TITLE.

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

SEC. 402. 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. 403. 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 
        title 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 title 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 title 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 title 
        before the conduct of the first lease sale.
            (3) Compliance with nepa for other actions.--Before 
        conducting the first lease sale under this title, the Secretary 
        shall prepare an environmental impact statement under the 
        National Environmental Policy Act of 1969 with respect to the 
        actions authorized by this title 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 
        title 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 title.
    (d) Relationship to State and Local Authority.--Nothing in this 
title 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 
title.
    (g) Regulations.--
            (1) In general.--The Secretary shall prescribe such 
        regulations as may be necessary to carry out this title, 
        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. 404. LEASE SALES.

    (a) In General.--Lands may be leased pursuant to this title 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 title shall be 
by sealed competitive cash bonus bids.
    (d) Acreage Minimum in First Sale.--In the first lease sale under 
this title, 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 title 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. 405. 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 404 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 title 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. 406. LEASE TERMS AND CONDITIONS.

    (a) In General.--An oil or gas lease issued pursuant to this title 
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 title 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 403(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 title and the regulations issued under this title.
    (b) Project Labor Agreements.--The Secretary, as a term and 
condition of each lease under this title 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 title 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. 407. 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 403, administer the provisions of this title 
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 title, 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 title are conducted in a manner consistent with the purposes and 
environmental requirements of this title.
    (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 title 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 title, 
        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. 408. EXPEDITED JUDICIAL REVIEW.

    (a) Filing of Complaint.--
            (1) Deadline.--Subject to paragraph (2), any complaint 
        seeking judicial review of any provision of this title or any 
        action of the Secretary under this title 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 title or any action of the Secretary under 
        this title 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 
        title, including the environmental analysis thereof, shall be 
        limited to whether the Secretary has complied with the terms of 
        this title 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 title 
        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. 409. 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 title--
            (1) 50 percent shall be paid to the State of Alaska; and
            (2) except as provided in section 412(d), the balance shall 
        be transferred to the ANWR Alternative Energy Trust Fund 
        established by this title.
    (b) Payments to Alaska.--Payments to the State of Alaska under this 
section shall be made semiannually.

SEC. 410. 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 403(g) provisions granting rights-of-way and easements 
described in subsection (a) of this section.

SEC. 411. 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. 412. 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 
        title.
            (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 title, 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 title.
            (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.

SEC. 413. ANWR ALTERNATIVE 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 ``ANWR 
Alternative Energy Trust Fund'', consisting of such amounts as may be 
transferred to the ANWR Alternative Energy Trust Fund as provided in 
section 409.
    (b) Expenditures From ANWR Alternative Energy Trust Fund.--
            (1) In general.--Amounts in the ANWR Alternative 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'') and the Energy Independence and Security Act of 
        2007 (Public Law 110-140; in this section referred to as 
        ``EISAct2007''), as follows:


 
                                                      The following
                                                   percentage of annual
                                                   receipts to the ANWR
                                                    Alternative Energy
        To carry out the provisions of:           Trust Fund, but not to
                                                   exceed the limit on
                                                  amount authorized, if
                                                           any:
 
EPAct2005:.....................................
  Section 210..................................              1.5 percent
  Section 242..................................              1.0 percent
  Section 369..................................              2.0 percent
  Section 401..................................              6.0 percent
  Section 812..................................              6.0 percent
  Section 931..................................             19.0 percent
  Section 942..................................              1.5 percent
  Section 962..................................              3.0 percent
  Section 968..................................              1.5 percent
  Section 1704.................................              6.0 percent
EISAct2007:....................................
  Section 207..................................             15.0 percent
  Section 607..................................              1.5 percent
  Title VI, Subtitle B.........................              3.0 percent
  Title VI, Subtitle C.........................              1.5 percent
  Section 641..................................              9.0 percent
  Title VII, Subtitle A........................             15.0 percent
  Section 1112.................................              1.5 percent
  Section 1304.................................             6.0 percent.
 

            (2) Apportionment of excess amount.--Notwithstanding 
        paragraph (1), any amounts allocated under paragraph (1) that 
        are in excess of the amounts authorized in the applicable cited 
        section or subtitle of EPAct2005 and EISAct2007 shall be 
        reallocated to the remaining sections and subtitles cited in 
        paragraph (1), up to the amounts otherwise authorized by law to 
        carry out such sections and subtitles, in proportion to the 
        amounts authorized by law to be appropriated for such other 
        sections and subtitles.
                                 <all>