[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6421 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6421

 To direct the Secretary of the Interior to establish and implement a 
   competitive oil and gas leasing program for the Coastal Plain of 
Alaska, to provide for expanded leasing of the oil and gas resources of 
   the outer Continental Shelf for exploration, to eliminate certain 
 impediments to the development of nuclear energy sources, to promote 
        coal-to-liquid fuel activities, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 26, 2008

 Mr. Shuster introduced the following bill; which was referred to the 
 Committee on Natural Resources, and in addition to the Committees on 
     Ways and Means, Energy and Commerce, Science and Technology, 
   Transportation and Infrastructure, and Rules, 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 direct the Secretary of the Interior to establish and implement a 
   competitive oil and gas leasing program for the Coastal Plain of 
Alaska, to provide for expanded leasing of the oil and gas resources of 
   the outer Continental Shelf for exploration, to eliminate certain 
 impediments to the development of nuclear energy sources, to promote 
        coal-to-liquid fuel activities, 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.

    This Act may be cited as the ``Energy Independence Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--OIL AND GAS LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN 
                               OF ALASKA

Sec. 101. Short title.
Sec. 102. Definitions.
Sec. 103. Leasing program for lands within the Coastal Plain.
Sec. 104. Lease sales.
Sec. 105. Grant of leases by the Secretary.
Sec. 106. Lease terms and conditions.
Sec. 107. Coastal plain environmental protection.
Sec. 108. Expedited judicial review.
Sec. 109. Federal and State distribution of revenues.
Sec. 110. Rights-of-way across the Coastal Plain.
Sec. 111. Conveyance.
Sec. 112. Local government impact aid and community service assistance.
Sec. 113. ANWR Alternative Energy Trust Fund.
              TITLE II--OPENING OF OUTER CONTINENTAL SHELF

Sec. 201. Short title.
Sec. 202. Policy.
Sec. 203. Definitions under the Outer Continental Shelf Lands Act.
Sec. 204. Determination of Adjacent Zones and planning areas.
Sec. 205. Administration of leasing.
Sec. 206. Grant of leases by Secretary.
Sec. 207. Reservation of lands and rights.
Sec. 208. Outer Continental Shelf Leasing Program.
Sec. 209. Coordination with Adjacent States.
Sec. 210. Environmental studies.
Sec. 211. Federal Energy Natural Resources Enhancement Act of 2008.
Sec. 212. Termination of effect of laws prohibiting the spending of 
                            appropriated funds for certain purposes.
Sec. 213. Outer Continental Shelf incompatible use.
Sec. 214. Repurchase of certain leases.
Sec. 215. Offsite environmental mitigation.
Sec. 216. Minerals Management Service.
Sec. 217. Authority to use decommissioned offshore oil and gas 
                            platforms and other facilities for 
                            artificial reef, scientific research, or 
                            other uses.
Sec. 218. Repeal of requirement to conduct comprehensive inventory of 
                            OCS oil and natural gas resources.
Sec. 219. Leases for areas located within 100 miles of California or 
                            Florida.
Sec. 220. Coastal impact assistance.
Sec. 221. Oil shale and tar sands amendments.
                       TITLE III--NUCLEAR ENERGY

Sec. 301. Incentives for innovative technologies.
Sec. 302. Standby support for certain nuclear plant delays.
Sec. 303. Authorization for nuclear power 2010 program.
Sec. 304. Domestic manufacturing base for nuclear components and 
                            equipment.
Sec. 305. Nuclear energy workforce.
Sec. 306. Licensing of new nuclear power plants.
Sec. 307. Investment tax credit for investments in nuclear power 
                            facilities.
Sec. 308. National Nuclear Energy Council.
Sec. 309. Temporary spent nuclear fuel storage agreements.
Sec. 310. Implementation of temporary spent nuclear fuel storage 
                            agreements.
Sec. 311. Expedited procedures for congressional review of temporary 
                            spent nuclear fuel storage agreements.
Sec. 312. Contracting and Nuclear Waste Fund.
Sec. 313. Confidence in availability of waste disposal.
       TITLE IV--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

Sec. 401. Credit for investment in coal-to-liquid fuels projects.
Sec. 402. Temporary expensing for equipment used in coal-to-liquid 
                            fuels process.
Sec. 403. Extension of alternative fuel credit for fuel derived from 
                            coal through the Fischer-Tropsch process or 
                            the Schobert process.

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

SEC. 101. SHORT TITLE.

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

SEC. 102. 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. 103. 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. 104. 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. 105. 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 104 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. 106. 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 103(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. 107. 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 103, 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. 108. 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. 109. 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 112(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. 110. 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 103(g) provisions granting rights-of-way and easements 
described in subsection (a) of this section.

SEC. 111. 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. 112. 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. 113. 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 109.
    (b) Expenditures From ANWR Alternative Energy Trust Fundk.--
            (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.

              TITLE II--OPENING OF OUTER CONTINENTAL SHELF

SEC. 201. SHORT TITLE.

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

SEC. 202. 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. 203. DEFINITIONS UNDER THE OUTER CONTINENTAL SHELF LANDS ACT.

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

SEC. 204. 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. 205. ADMINISTRATION OF LEASING.

    Section 5 of the Outer Continental Shelf Lands Act (43 U.S.C. 1334) 
is amended by adding at the end the following:
    ``(k) Voluntary Partial Relinquishment of a Lease.--Any lessee of a 
producing lease may relinquish to the Secretary any portion of a lease 
that the lessee has no interest in producing and that the Secretary 
finds is geologically prospective. In return for any such 
relinquishment, the Secretary shall provide to the lessee a royalty 
incentive for the portion of the lease retained by the lessee, in 
accordance with regulations promulgated by the Secretary to carry out 
this subsection. The Secretary shall publish final regulations 
implementing this subsection within 365 days after the date of the 
enactment of the Deep Ocean Energy Resources Act of 2008.
    ``(l) Natural Gas Lease Regulations.--Not later than July 1, 2009, 
the Secretary shall publish a final regulation that shall--
            ``(1) establish procedures for entering into natural gas 
        leases;
            ``(2) ensure that natural gas leases are only available for 
        tracts on the outer Continental Shelf that are wholly within 
        100 miles of the coastline within an area withdrawn from 
        disposition by leasing on the day after the date of enactment 
        of the Deep Ocean Energy Resources Act of 2008;
            ``(3) provide that natural gas leases shall contain the 
        same rights and obligations established for oil and gas leases, 
        except as otherwise provided in the Deep Ocean Energy Resources 
        Act of 2008;
            ``(4) provide that, in reviewing the adequacy of bids for 
        natural gas leases, the value of any crude oil estimated to be 
        contained within any tract shall be excluded;
            ``(5) provide that any crude oil produced from a well and 
        reinjected into the leased tract shall not be subject to 
        payment of royalty, and that the Secretary shall consider, in 
        setting the royalty rates for a natural gas lease, the 
        additional cost to the lessee of not producing any crude oil; 
        and
            ``(6) provide that any Federal law that applies to an oil 
        and gas lease on the outer Continental Shelf shall apply to a 
        natural gas lease unless otherwise clearly inapplicable.''.

SEC. 206. 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 25 
        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 25 percent of the receipts from projects completely located 
        in the area more than 4 marine leagues from the coastline. 
        Payments shall be based on a formula established by the 
        Secretary by rulemaking no later than 180 days after the date 
        of the enactment of the Deep Ocean Energy Resources Act of 2008 
        that provides for equitable distribution, based on proximity to 
        the project, among coastal states that have coastline that is 
        located within 200 miles of the geographic center of the 
        project.'';
            (4) by adding at the end the following:
    ``(q) Natural Gas Leases.--
            ``(1) Right to produce natural gas.--A lessee of a natural 
        gas lease shall have the right to produce the natural gas from 
        a field on a natural gas leased tract if the Secretary 
        estimates that the discovered field has at least 40 percent of 
        the economically recoverable Btu content of the field contained 
        within natural gas and such natural gas is economical to 
        produce.
            ``(2) Crude oil.--A lessee of a natural gas lease may not 
        produce crude oil from the lease.
            ``(3) Estimates of btu content.--The Secretary shall make 
        estimates of the natural gas Btu content of discovered fields 
        on a natural gas lease only after the completion of at least 
        one exploration well, the data from which has been tied to the 
        results of a three-dimensional seismic survey of the field. The 
        Secretary may not require the lessee to further delineate any 
        discovered field prior to making such estimates.
            ``(4) Definition of natural gas.--For purposes of a natural 
        gas lease, natural gas means natural gas and all substances 
        produced in association with gas, including, but not limited 
        to, hydrocarbon liquids (other than crude oil) that are 
        obtained by the condensation of hydrocarbon vapors and separate 
        out in liquid form from the produced gas stream.
    ``(r) Removal of Restrictions on Joint Bidding in Certain Areas of 
the Outer Continental Shelf.--Restrictions on joint bidders shall no 
longer apply to tracts located in the Alaska OCS Region. Such 
restrictions shall not apply to tracts in other OCS regions determined 
to be `frontier tracts' or otherwise `high cost tracts' under final 
regulations that shall be published by the Secretary by not later than 
365 days after the date of the enactment of the Deep Ocean Energy 
Resources Act of 2008.
    ``(s) Royalty Suspension Provisions.--The Secretary shall agree to 
a request by any lessee to amend any lease issued for Central and 
Western Gulf of Mexico tracts during the period of January 1, 1998, 
through December 31, 1999, to incorporate price thresholds applicable 
to royalty suspension provisions, or amend existing price thresholds, 
in the amount of $40.50 per barrel (2006 dollars) for oil and for 
natural gas of $6.75 per million Btu (2006 dollars). Any amended lease 
shall impose the new or revised price thresholds effective October 1, 
2008. Existing lease provisions shall prevail through September 30, 
2008. After the date of the enactment of the Deep Ocean Energy 
Resources Act of 2008, price thresholds shall apply to any royalty 
suspension volumes granted by the Secretary. Unless otherwise set by 
Secretary by regulation or for a particular lease sale, the price 
thresholds shall be $40.50 for oil (2006 dollars) and $6.75 for natural 
gas (2006 dollars).
    ``(t) Conservation of Resources Fees.--
            ``(1) Not later than one year after the date of the 
        enactment of the Deep Ocean Energy Resources Act of 2008, the 
        Secretary by regulation shall establish a conservation of 
        resources fee for producing leases that will apply to new and 
        existing leases which shall be set at $9 per barrel for oil and 
        $1.25 per million Btu for gas. This fee shall only apply to 
        leases in production located in more than 200 meters of water 
        for which royalties are not being paid when prices exceed 
        $40.50 per barrel for oil and $6.75 per million Btu for natural 
        gas in 2006, dollars. This fee shall apply to production from 
        and after October 1, 2008, and shall be treated as offsetting 
        receipts.
            ``(2) Not later than one year after the date of the 
        enactment of the Deep Ocean Energy Resources Act of 2008, the 
        Secretary by regulation shall establish a conservation of 
        resources fee for nonproducing leases that will apply to new 
        and existing leases which shall be set at $3.75 per acre per 
        year. This fee shall apply from and after October 1, 2008, and 
        shall be treated as offsetting receipts.'';
            (5) by striking subsection (a)(3)(A) and redesignating the 
        subsequent subparagraphs as subparagraphs (A) and (B), 
        respectively;
            (6) in subsection (a)(3)(A) (as so redesignated) by 
        striking ``In the Western'' and all that follows through ``the 
        Secretary'' the first place it appears and inserting ``The 
        Secretary''; and
            (7) effective October 1, 2008, in subsection (g)--
                    (A) by striking all after ``(g)'', except paragraph 
                (3);
                    (B) by striking the last sentence of paragraph (3); 
                and
                    (C) by striking ``(3)''.

SEC. 207. RESERVATION OF LANDS AND RIGHTS.

    Section 12 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1341) is amended--
            (1) in subsection (a) by adding at the end the following: 
        ``The President may partially or completely revise or revoke 
        any prior withdrawal made by the President under the authority 
        of this section. The President may not revise or revoke a 
        withdrawal that is extended by a State under subsection (h), 
        nor may the President withdraw from leasing any area for which 
        a State failed to prohibit, or petition to prohibit, leasing 
        under subsection (g). Further, in the area of the outer 
        Continental Shelf more than 100 miles from any coastline, not 
        more than 25 percent of the acreage of any OCS Planning Area 
        may be withdrawn from leasing under this section at any point 
        in time. A withdrawal by the President may be for a term not to 
        exceed 10 years. When considering potential uses of the outer 
        Continental Shelf, to the maximum extent possible, the 
        President shall accommodate competing interests and potential 
        uses.'';
            (2) by adding at the end the following:
    ``(g) Availability for Leasing Within Certain Areas of the Outer 
Continental Shelf.--
            ``(1) Prohibition against leasing.--
                    ``(A) Unavailable for leasing without state 
                request.--Except as otherwise provided in this 
                subsection, from and after enactment of the Deep Ocean 
                Energy Resources Act of 2008, the Secretary shall not 
                offer for leasing for oil and gas, or natural gas, any 
                area within 50 miles of the coastline that was 
                withdrawn from disposition by leasing in the Atlantic 
                OCS Region or the Pacific OCS Region, or the Gulf of 
                Mexico OCS Region Eastern Planning Area, as depicted on 
                the maps referred to in this subparagraph, under the 
                `Memorandum on Withdrawal of Certain Areas of the 
                United States Outer Continental Shelf from Leasing 
                Disposition', 34 Weekly Comp. Pres. Doc. 1111, dated 
                June 12, 1998, or any area within 50 miles of the 
                coastline not withdrawn under that Memorandum that is 
                included within the Gulf of Mexico OCS Region Eastern 
                Planning Area as indicated on the map entitled `Gulf of 
                Mexico OCS Region State Adjacent Zones and OCS Planning 
                Areas' or the Florida Straits Planning Area as 
                indicated on the map entitled `Atlantic OCS Region 
                State Adjacent Zones and OCS Planning Areas', both of 
                which are dated September 2005 and on file in the 
                Office of the Director, Minerals Management Service.
                    ``(B) Areas between 50 and 100 miles from the 
                coastline.--Unless an Adjacent State petitions under 
                subsection (h) within one year after the date of the 
                enactment of the Deep Ocean Energy Resources Act of 
                2008 for natural gas leasing or by June 30, 2011, for 
                oil and gas leasing, the Secretary shall offer for 
                leasing any area more than 50 miles but less than 100 
                miles from the coastline that was withdrawn from 
                disposition by leasing in the Atlantic OCS Region, the 
                Pacific OCS Region, or the Gulf of Mexico OCS Region 
                Eastern Planning Area, as depicted on the maps referred 
                to in this subparagraph, under the `Memorandum on 
                Withdrawal of Certain Areas of the United States Outer 
                Continental Shelf from Leasing Disposition', 34 Weekly 
                Comp. Pres. Doc. 1111, dated June 12, 1998, or any area 
                more than 50 miles but less than 100 miles of the 
                coastline not withdrawn under that Memorandum that is 
                included within the Gulf of Mexico OCS Region Eastern 
                Planning Area as indicated on the map entitled `Gulf of 
                Mexico OCS Region State Adjacent Zones and OCS Planning 
                Areas' or within the Florida Straits Planning Area as 
                indicated on the map entitled `Atlantic OCS Region 
                State Adjacent Zones and OCS Planning Areas', both of 
                which are dated September 2005 and on file in the 
                Office of the Director, Minerals Management Service.
            ``(2) Revocation of withdrawal.--The provisions of the 
        `Memorandum on Withdrawal of Certain Areas of the United States 
        Outer Continental Shelf from Leasing Disposition', 34 Weekly 
        Comp. Pres. Doc. 1111, dated June 12, 1998, are hereby revoked 
        and are no longer in effect. Any tract only partially added to 
        the Gulf of Mexico OCS Region Central Planning Area by this Act 
        shall be eligible for leasing of the part of such tract that is 
        included within the Gulf of Mexico OCS Region Central Planning 
        Area, and the remainder of such tract that lies outside of the 
        Gulf of Mexico OCS Region Central Planning Area may be 
        developed and produced by the lessee of such partial tract 
        using extended reach or similar drilling from a location on a 
        leased area. Further, any area in the OCS withdrawn from 
        leasing may be leased, and thereafter developed and produced by 
        the lessee using extended reach or similar drilling from a 
        location on a leased area located in an area available for 
        leasing.
            ``(3) Petition for leasing.--
                    ``(A) In general.--The Governor of the State, upon 
                concurrence of its legislature, may submit to the 
                Secretary a petition requesting that the Secretary make 
                available any area that is within the State's Adjacent 
                Zone, included within the provisions of paragraph (1), 
                and that (i) is greater than 25 miles from any point on 
                the coastline of a Neighboring State for the conduct of 
                offshore leasing, pre-leasing, and related activities 
                with respect to natural gas leasing; or (ii) is greater 
                than 50 miles from any point on the coastline of a 
                Neighboring State for the conduct of offshore leasing, 
                pre-leasing, and related activities with respect to oil 
                and gas leasing. The Adjacent State may also petition 
                for leasing any other area within its Adjacent Zone if 
                leasing is allowed in the similar area of the Adjacent 
                Zone of the applicable Neighboring State, or if not 
                allowed, if the Neighboring State, acting through its 
                Governor, expresses its concurrence with the petition. 
                The Secretary shall only consider such a petition upon 
                making a finding that leasing is allowed in the similar 
                area of the Adjacent Zone of the applicable Neighboring 
                State or upon receipt of the concurrence of the 
                Neighboring State. The date of receipt by the Secretary 
                of such concurrence by the Neighboring State shall 
                constitute the date of receipt of the petition for that 
                area for which the concurrence applies. Except for any 
                area described in the last sentence of paragraph (2), a 
                petition for leasing any part of the Alabama Adjacent 
                Zone that is a part of the Gulf of Mexico Eastern 
                Planning Area, as indicated on the map entitled `Gulf 
                of Mexico OCS Region State Adjacent Zones and OCS 
                Planning Areas' which is dated September 2005 and on 
                file in the Office of the Director, Minerals Management 
                Service, shall require the concurrence of both Alabama 
                and Florida.
                    ``(B) Limitations on leasing.--In its petition, a 
                State with an Adjacent Zone that contains leased tracts 
                may condition new leasing for oil and gas, or natural 
                gas for tracts within 25 miles of the coastline by--
                            ``(i) requiring a net reduction in the 
                        number of production platforms;
                            ``(ii) requiring a net increase in the 
                        average distance of production platforms from 
                        the coastline;
                            ``(iii) limiting permanent surface 
                        occupancy on new leases to areas that are more 
                        than 10 miles from the coastline;
                            ``(iv) limiting some tracts to being 
                        produced from shore or from platforms located 
                        on other tracts; or
                            ``(v) other conditions that the Adjacent 
                        State may deem appropriate as long as the 
                        Secretary does not determine that production is 
                        made economically or technically impracticable 
                        or otherwise impossible.
                    ``(C) Action by secretary.--Not later than 90 days 
                after receipt of a petition under subparagraph (A), the 
                Secretary shall approve the petition, unless the 
                Secretary determines that leasing the area would 
                probably cause serious harm or damage to the marine 
                resources of the State's Adjacent Zone. Prior to 
                approving the petition, the Secretary shall complete an 
                environmental assessment that documents the anticipated 
                environmental effects of leasing in the area included 
                within the scope of the petition.
                    ``(D) Failure to act.--If the Secretary fails to 
                approve or deny a petition in accordance with 
                subparagraph (C) the petition shall be considered to be 
                approved 90 days after receipt of the petition.
                    ``(E) Amendment of the 5-year leasing program.--
                Notwithstanding section 18, within 180 days of the 
                approval of a petition under subparagraph (C) or (D), 
                after the expiration of the time limits in paragraph 
                (1)(B), and within 180 days after the enactment of the 
                Deep Ocean Energy Resources Act of 2008 for the areas 
                made available for leasing under paragraph (2), the 
                Secretary shall amend the current 5-Year Outer 
                Continental Shelf Oil and Gas Leasing Program to 
                include a lease sale or sales for at least 75 percent 
                of the associated areas, unless there are, from the 
                date of approval, expiration of such time limits, or 
                enactment, as applicable, fewer than 12 months 
                remaining in the current 5-Year Leasing Program in 
                which case the Secretary shall include the associated 
                areas within lease sales under the next 5-Year Leasing 
                Program. For purposes of amending the 5-Year Program in 
                accordance with this section, further consultations 
                with States shall not be required. For purposes of this 
                section, an environmental assessment performed under 
                the provisions of the National Environmental Policy Act 
                of 1969 to assess the effects of approving the petition 
                shall be sufficient to amend the 5-Year Leasing 
                Program.
    ``(h) Option To Extend Withdrawal From Leasing Within Certain Areas 
of the Outer Continental Shelf.--A State, through its Governor and upon 
the concurrence of its legislature, may extend for a period of time of 
up to 5 years for each extension the withdrawal from leasing for all or 
part of any area within the State's Adjacent Zone located more than 50 
miles, but less than 100 miles, from the coastline that is subject to 
subsection (g)(1)(B). A State may extend multiple times for any 
particular area but not more than once per calendar year for any 
particular area. A State must prepare separate extensions, with 
separate votes by its legislature, for oil and gas leasing and for 
natural gas leasing. An extension by a State may affect some areas to 
be withdrawn from all leasing and some areas to be withdrawn only from 
one type of leasing. Extensions of the withdrawal from leasing of any 
part of the Alabama Adjacent Zone that is more than 50 miles, but less 
than 100 miles, from the coastline that is a part of the Gulf of Mexico 
OCS Region Eastern Planning Area, as indicated on the map entitled 
`Gulf of Mexico OCS Region State Adjacent Zones and OCS Planning Areas' 
which is dated September 2005 and on file in the Office of the 
Director, Minerals Management Service, may be made by either Alabama or 
Florida.
    ``(i) Effect of Other Laws.--Adoption by any Adjacent State of any 
constitutional provision, or enactment of any State statute, that has 
the effect, as determined by the Secretary, of restricting either the 
Governor or the Legislature, or both, from exercising full discretion 
related to subsection (g) or (h), or both, shall automatically (1) 
prohibit any sharing of OCS Receipts under this Act with the Adjacent 
State, and its coastal political subdivisions, and (2) prohibit the 
Adjacent State from exercising any authority under subsection (h), for 
the duration of the restriction. The Secretary shall make the 
determination of the existence of such restricting constitutional 
provision or State statute within 30 days of a petition by any outer 
Continental Shelf lessee or coastal State.
    ``(j) Prohibition on Leasing East of the Military Mission Line.--
            ``(1) Notwithstanding any other provision of law, from and 
        after the enactment of the Deep Ocean Energy Resources Act of 
        2008, no area of the outer Continental Shelf located in the 
        Gulf of Mexico east of the military mission line may be offered 
        for leasing for oil and gas or natural gas prior to January 1, 
        2022.
            ``(2) In this subsection, the term `military mission line' 
        means a line located at 86 degrees, 41 minutes West Longitude, 
        and extending south from the coast of Florida to the outer 
        boundary of United States territorial waters in the Gulf of 
        Mexico.''.

SEC. 208. 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. 209. 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. 210. 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. 211. FEDERAL ENERGY NATURAL RESOURCES ENHANCEMENT ACT OF 2008.

    (a) Short Title.--This section may be cited as the ``Federal Energy 
Natural Resources Enhancement Act of 2008''.
    (b) Findings.--The Congress finds the following:
            (1) Energy and minerals exploration, development, and 
        production on Federal onshore and offshore lands, including 
        bio-based fuel, natural gas, minerals, oil, geothermal, and 
        power from wind, waves, currents, and thermal energy, involves 
        significant outlays of funds by Federal and State wildlife, 
        fish, and natural resource management agencies for 
        environmental studies, planning, development, monitoring, and 
        management of wildlife, fish, air, water, and other natural 
        resources.
            (2) State wildlife, fish, and natural resource management 
        agencies are funded primarily through permit and license fees 
        paid to the States by the general public to hunt and fish, and 
        through Federal excise taxes on equipment used for these 
        activities.
            (3) Funds generated from consumptive and recreational uses 
        of wildlife, fish, and other natural resources currently are 
        inadequate to address the natural resources related to energy 
        and minerals development on Federal onshore and offshore lands.
            (4) Funds available to Federal agencies responsible for 
        managing Federal onshore and offshore lands and Federal-trust 
        wildlife and fish species and their habitats are inadequate to 
        address the natural resources related to energy and minerals 
        development on Federal onshore and offshore lands.
            (5) Receipts derived from sales, bonus bids, and royalties 
        under the mineral leasing laws of the United States are paid to 
        the Treasury through the Minerals Management Service of the 
        Department of the Interior.
            (6) None of the receipts derived from sales, bonus bids, 
        and royalties under the minerals leasing laws of the United 
        States are paid to the Federal or State agencies to examine, 
        monitor, and manage wildlife, fish, air, water, and other 
        natural resources related to natural gas, oil, and mineral 
        exploration and development.
    (c) Purposes.--It is the purpose of this section to--
            (1) authorize expenditures for the monitoring and 
        management of wildlife and fish, and their habitats, and air, 
        water, and other natural resources related to energy and 
        minerals development on Federal onshore and offshore lands;
            (2) authorize expenditures for each fiscal year to the 
        Secretary of the Interior and the States; and
            (3) use the appropriated funds to secure the necessary 
        trained workforce or contractual services to conduct 
        environmental studies, planning, development, monitoring, and 
        post-development management of wildlife and fish and their 
        habitats and air, water, and other natural resources that may 
        be related to bio-based fuel, gas, mineral, oil, wind, or other 
        energy exploration, development, transportation, transmission, 
        and associated activities on Federal onshore and offshore 
        lands, including, but not limited to--
                    (A) pertinent research, surveys, and environmental 
                analyses conducted to identify any impacts on wildlife, 
                fish, air, water, and other natural resources from 
                energy and mineral exploration, development, 
                production, and transportation or transmission;
                    (B) projects to maintain, improve, or enhance 
                wildlife and fish populations and their habitats or 
                air, water, or other natural resources, including 
                activities under the Endangered Species Act of 1973;
                    (C) research, surveys, environmental analyses, and 
                projects that assist in managing, including mitigating 
                either onsite or offsite, or both, the impacts of 
                energy and mineral activities on wildlife, fish, air, 
                water, and other natural resources; and
                    (D) projects to teach young people to live off the 
                land.
    (d) Definitions.--In this section:
            (1) Enhancement program.--The term ``Enhancement Program'' 
        means the Federal Energy Natural Resources Enhancement Program 
        established by this section.
            (2) State.--The term ``State'' means the Governor of the 
        State.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out the Enhancement Program $150,000,000 for each 
of fiscal years 2009 through 2019.
    (f) Establishment of Federal Energy Natural Resources Enhancement 
Program.--
            (1) In general.--There is established the Federal Energy 
        Natural Resources Enhancement Program.
            (2) Payment to secretary of the interior.--Beginning with 
        fiscal year 2009, and in each fiscal year thereafter, one-third 
        of amounts appropriated for the Enhancement Program shall be 
        available to the Secretary of the Interior for use for the 
        purposes described in subsection (c)(3).
            (3) Payment to states.--
                    (A) In general.--Beginning with fiscal year 2009, 
                and in each fiscal year thereafter, two-thirds of 
                amounts appropriated for the Enhancement Program shall 
                be available to the States for use for the purposes 
                described in (c)(3).
                    (B) Use of payments by state.--Each State shall use 
                the payments made under this paragraph only for 
                carrying out projects and programs for the purposes 
                described in (c)(3).
                    (C) Encourage use of private funds by state.--Each 
                State shall use the payments made under this paragraph 
                to leverage private funds for carrying out projects for 
                the purposes described in (c)(3).
    (g) Limitation on Use.--Amounts made available under this section 
may not be used for the purchase of any interest in land.
    (h) Reports to Congress.--
            (1) In general.--Beginning in fiscal year 2010 and 
        continuing for each fiscal year thereafter, the Secretary of 
        the Interior and each State receiving funds from the 
        Enhancement Fund shall submit a report to the Committee on 
        Energy and Natural Resources of the Senate and the Committee on 
        Resources of the House of Representatives.
            (2) Required information.--Reports submitted to the 
        Congress by the Secretary of the Interior and States under this 
        subsection shall include the following information regarding 
        expenditures during the previous fiscal year:
                    (A) A summary of pertinent scientific research and 
                surveys conducted to identify impacts on wildlife, 
                fish, and other natural resources from energy and 
                mineral developments.
                    (B) A summary of projects planned and completed to 
                maintain, improve or enhance wildlife and fish 
                populations and their habitats or other natural 
                resources.
                    (C) A list of additional actions that assist, or 
                would assist, in managing, including mitigating either 
                onsite or offsite, or both, the impacts of energy and 
                mineral development on wildlife, fish, and other 
                natural resources.
                    (D) A summary of private (non-Federal) funds used 
                to plan, conduct, and complete the plans and programs 
                identified in subparagraphs (A) and (B).

SEC. 212. 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. 213. 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. 214. REPURCHASE OF CERTAIN LEASES.

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

SEC. 215. 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. 216. 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. 217. 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. 218. 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. 219. 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. 220. COASTAL IMPACT ASSISTANCE.

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

SEC. 221. 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 in the Treasury as 
        miscellaneous receipts.
            ``(2) Royalty rates for commercial leases.--
                    ``(A) Royalty rates.--The Secretary shall model the 
                royalty schedule for oil shale and tar sands leases 
                based on the royalty program currently in effect for 
                the production of synthetic crude oil from oil sands in 
                the Province of Alberta, Canada.
                    ``(B) Reduction.--The Secretary shall reduce any 
                royalty otherwise required to be paid under 
                subparagraph (A) under any oil shale or tar sands lease 
                on a sliding scale based upon market price, with a 10 
                percent reduction if the average futures price of NYMEX 
                Light Sweet Crude, or a similar index, drops, for the 
                previous quarter year, below $50 (in January 1, 2006, 
                dollars), and an 80 percent reduction if the average 
                price drops below $30 (in January 1, 2006, dollars) for 
                the quarter previous to the one in which the production 
                is sold.''.

                       TITLE III--NUCLEAR ENERGY

SEC. 301. INCENTIVES FOR INNOVATIVE TECHNOLOGIES.

    (a) Definition of Project Cost.--Section 1701(1) of the Energy 
Policy Act of 2005 (42 U.S.C. 16511(1)) is amended by inserting a new 
paragraph (4) and renumbering the paragraphs accordingly:
            ``(4) Project cost.--The term `project cost' means all 
        costs associated with the development, planning, design, 
        engineering, permitting and licensing, construction, 
        commissioning, start-up, shakedown and financing of the 
        facility, including but not limited to reasonable escalation 
        and contingencies, the cost of and fees for the guarantee, 
        reasonably required reserve funds, initial working capital and 
        interest during construction.''.
    (b) Terms and Conditions.--Section 1702 of the Energy Policy Act of 
2005 (42 U.S.C. 16512) is amended by striking subsections (b) and (c) 
and inserting the following:
    ``(b) Specific Appropriation or Contribution.--
            ``(1) In general.--No guarantee shall be made unless--
                    ``(A) an appropriation for the cost has been made; 
                or
                    ``(B) the Secretary has received from the borrower 
                a payment in full for the cost of the obligation and 
                deposited the payment into the Treasury; or
                    ``(C) a combination of (A) and (B) has been made, 
                that when combined is sufficient to cover the cost of 
                the obligation.
            ``(2) Relation to other laws.--Section 504 (b) of the 
        Federal Credit Reform Act of 1990 (2 U.S.C. 661c (b)) shall not 
        apply to a loan guarantee made in accordance with paragraph 
        (1)(B).''.
    (c) Amount.--Section 1702 of the Energy Policy Act of 2005 (42 
U.S.C. 16512) is amended by striking subsection (c) and inserting the 
following:
    ``(c) Amount.--
            ``(1) In general.--Subject to paragraph (2), the Secretary 
        shall guarantee 100 percent of the obligation for a facility 
        that is the subject of the guarantee, or a lesser amount if 
        requested by the borrower.
            ``(2) Limitation.--The total amount of loans guaranteed for 
        a facility by the Secretary shall not exceed 80 percent of the 
        total cost of the facility, as estimated at the time at which 
        the guarantee is issued.''.
    (d) Fees.--Section 1702(h) of the Energy Policy Act of 2005 (42 
U.S.C. 16512(h)) is amended by striking paragraph (2) and inserting the 
following:
            ``(2) Availability.--Fees collected under this subsection 
        shall--
                    ``(A) be deposited by the Secretary into a special 
                fund in the Treasury to be known as the `Incentives For 
                Innovative Technologies Fund'; and
                    ``(B) remain available to the Secretary for 
                expenditure, without further appropriation or fiscal 
                year limitation, for administrative expenses incurred 
                in carrying out this title.''.

SEC. 302. STANDBY SUPPORT FOR CERTAIN NUCLEAR PLANT DELAYS.

    (a) Definitions.--Section 638(a) of the Energy Policy Act of 2005 
(42 U.S.C. 16014(a)) is amended as follows:
            (1) By inserting the following:
            ``(4) Full power operation.--The term `full power 
        operation' means whichever occurs first of--
                    ``(A) the `commercial operation date' or the 
                equivalent under the terms of the financing documents 
                for such facility, or
                    ``(B) operation of such facility at an average of 
                50 percent or greater of nameplate capacity over any 
                consecutive 30-day period.
            ``(5) Increased project costs.--The term `increased project 
        costs' means the increased cost of constructing, commissioning, 
        testing, operating or maintaining a reactor prior to full-power 
        operation incurred as a result of a delay covered by the 
        contract including but not limited to costs of demobilization 
        and remobilization, increased costs of equipment, materials and 
        labor due to delay (including idle time), increased general and 
        administrative costs, and escalation costs for completing 
        construction.
            ``(6) Litigation.--The term `litigation' means adjudication 
        in Federal, State, local or tribal courts and administrative 
        proceedings or hearings at or before Federal, State, local or 
        tribal agencies or administrative bodies.''.
            (2) By redesignating paragraph (4) as paragraph (7).
    (b) Contract Authority.--Section 638(b) of the Energy Policy Act of 
2005 (42 U.S.C. Sec. 16014(b)) is amended by striking paragraph (1) and 
inserting the following:
            ``(1) In general.--The Secretary may enter into contracts 
        under this section with sponsors of an advanced nuclear 
        facility that cover at any one time outstanding a total of not 
        more than 6 reactors, with the 6 reactors consisting of not 
        more than 3 different reactor designs, in accordance with 
        paragraph (2). In the event that any contract entered into 
        under this section terminates or expires without a claim being 
        paid by the Secretary thereunder, then the Secretary may enter 
        into a new contract under this section in replacement or 
        substitution for such contract.''.
    (c) Covered Costs.--Section 638(d) of the Energy Policy Act of 2005 
(42. U.S.C. Sec. 16014(d)) is amended by striking paragraphs (2) and 
(3) and inserting the following:
            ``(2) Coverage.--In the case of reactors that receive 
        combined licenses and on which construction is commenced, the 
        Secretary shall pay--
                    ``(A) 100 percent of the covered costs of delay 
                that occur after the initial 30-day period of covered 
                delay; but
                    ``(B) not more than $500,000,000 per contract.
            ``(3) Covered debt obligations.--Debt obligations covered 
        under subparagraph (A) of paragraph (5) shall include but not 
        be limited to debt obligations incurred to pay increased 
        project costs.''.
    (d) Dispute Resolution.--Section 638 of the Energy Policy Act of 
2005 (42 U.S.C. 16014) is amended as follows:
            (1) by inserting the following:
    ``(f) Dispute Resolution.--Any controversy or claim arising out of 
or relating to any contract entered into under this section shall be 
determined by arbitration in Washington, DC according to the then 
prevailing Commercial Arbitration Rules of the American Arbitration 
Association. A decision by the arbitrator(s) shall be final and 
binding, and any court having jurisdiction may enter judgment on it.''; 
and
            (2) by designating subsections (f), (g), and (h) as 
        subsections (g), (h), and (i) respectively.

SEC. 303. AUTHORIZATION FOR NUCLEAR POWER 2010 PROGRAM.

    Section 952(c) of the Energy Policy Act of 2005 (42 U.S.C. 16014) 
is amended by striking subsections (1) and (2) and substituting the 
following:
            (1) In general.--The Secretary shall carry out a Nuclear 
        Power 2010 Program to position the nation to start construction 
        of new nuclear power plants by 2010 or as close to 2010 as 
        achievable.
            (2) Scope of program.--The Nuclear Power 2010 Program shall 
        be cost-shared with the private sector and shall support the 
        following objectives:
                    (A) Demonstrating the licensing process for new 
                nuclear power plants, including the Nuclear Regulatory 
                Commission process for obtaining early site permits 
                (EPS), combined construction/operating licenses (cols), 
                and design certifications.
                    (B) Conducting first-of-a-kind design and 
                engineering work on at least two advanced nuclear 
                reactor designs sufficient to bring those designs to a 
                state of design completion sufficient to allow 
                development of firm cost estimates.
            (3) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary to carry out the Nuclear 
        Power 2010 Program--
                    (A) $182,800,000 for fiscal year 2008;
                    (B) $159,600,000 for fiscal year 2009;
                    (C) $135,600,000 for fiscal year 2010;
                    (D) $46,900,000 for fiscal year 2011; and
                    (E) $2,200,000 for fiscal year 2012.

SEC. 304. DOMESTIC MANUFACTURING BASE FOR NUCLEAR COMPONENTS AND 
              EQUIPMENT.

    (a) Establishment of Interagency Working Group.--
            (1) Purposes.--
                    (A) to increase the competitiveness of the United 
                States nuclear energy products and services industries;
                    (B) to identify the stimulus or incentives 
                necessary to cause United States manufacturers of 
                nuclear energy products to expand manufacturing 
                capacity;
                    (C) to facilitate the export of United States 
                nuclear energy products and services;
                    (D) to reduce the trade deficit of the United 
                States through the export of United States nuclear 
                energy products and services;
                    (E) to retain and create nuclear energy 
                manufacturing and related service jobs in the United 
                States;
                    (F) to integrate the objectives in paragraphs (1) 
                through (4) in a manner consistent with the interests 
                of the United States, into the foreign policy of the 
                United States; and
                    (G) to authorize funds for increasing United States 
                capacity to manufacture nuclear energy products and 
                supply nuclear energy services.
            (2) Establishment.--
                    (A) There shall be established an interagency 
                working group that, in consultation with representative 
                industry organizations and manufacturers of nuclear 
                energy products, shall make recommendations to 
                coordinate the actions and programs of the Federal 
                Government in order to promote increasing domestic 
                manufacturing capacity and export of domestic nuclear 
                energy products and services.
                    (B) The Interagency Working Group shall be composed 
                of--
                            (i) The Secretary of Energy, or the 
                        Secretary's designee, shall chair the 
                        interagency working group. The Secretary of 
                        Energy shall provide staff for carrying out the 
                        functions of the interagency working group 
                        established under this section.
                            (ii) representatives of--
                                    (I) the Department of Energy;
                                    (II) the Department of Commerce;
                                    (III) the Department of Defense;
                                    (IV) the Department of Treasury;
                                    (V) the Department of State;
                                    (VI) the Environmental Protection 
                                Agency;
                                    (VII) the United States Agency for 
                                International Development;
                                    (VIII) the Export-Import Bank of 
                                the United States;
                                    (IX) the Trade and Development 
                                Agency;
                                    (X) the Small Business 
                                Administration;
                                    (XI) the Office of the U.S. Trade 
                                Representative; and
                                    (XII) other Federal agencies, as 
                                determined by the President.
                            (iii) The heads of appropriate agencies 
                        shall detail such personnel and furnish such 
                        services to the interagency group, with or 
                        without reimbursement, as may be necessary to 
                        carry out the group's functions.
            (3) Duties of the interagency working group.--
                    (A) Within six months of enactment, the interagency 
                working group established under section (1)(A) shall 
                identify the actions necessary to promote the safe 
                development and application in foreign countries of 
                nuclear energy products and services in order to--
                            (i) increase electricity generation from 
                        nuclear energy sources through development of 
                        new generation facilities;
                            (ii) improve the efficiency, safety and/or 
                        reliability of existing nuclear generating 
                        facilities through modifications; and
                            (iii) enhance the safe treatment, handling, 
                        storage and disposal of used nuclear fuel.
                    (B) Within 6 months of enactment, the interagency 
                working group shall identify mechanisms (including, but 
                not limited to, tax stimulus for investment, loans and 
                loan guarantees, and grants) necessary for United 
                States companies to increase their capacity to produce 
                or provide nuclear energy products and services, and to 
                increase their exports of nuclear energy products and 
                services. The interagency working group shall identify 
                administrative or legislative initiatives necessary 
                to--
                            (i) encourage United States companies to 
                        increase their manufacturing capacity for 
                        nuclear energy products;
                            (ii) provide technical and financial 
                        assistance and support to small and mid-sized 
                        businesses to establish quality assurance 
                        programs in accordance with domestic and 
                        international nuclear quality assurance code 
                        requirements;
                            (iii) encourage, through financial 
                        incentives, private sector capital investment 
                        to expand manufacturing capacity; and
                            (iv) provide technical assistance and 
                        financial incentives to small and mid-sized 
                        businesses to develop the work-force necessary 
                        to increase manufacturing capacity and meet 
                        domestic and international nuclear quality 
                        assurance code requirements.
                    (C) Within 9 months of enactment, the interagency 
                working group shall provide a report to Congress on its 
                findings under Section (2)(A) and (B), including 
                recommendations for new legislative authority where 
                necessary.
            (4) Trade assistance.--The interagency working group shall 
        encourage the member agencies of the interagency working group 
        to--
                    (A) provide technical training and education for 
                international development personnel and local users in 
                their own country;
                    (B) provide financial and technical assistance to 
                nonprofit institutions that support the marketing and 
                export efforts of domestic companies that provide 
                nuclear energy products and services;
                    (C) develop nuclear energy projects in foreign 
                countries;
                    (D) provide technical assistance and training 
                materials to loan officers of the World Bank, 
                international lending institutions, commercial and 
                energy attaches at embassies of the United States and 
                other appropriate personnel in order to provide 
                information about nuclear energy products and services 
                to foreign governments or other potential project 
                sponsors;
                    (E) support, through financial incentives, private 
                sector efforts to commercialize and export nuclear 
                energy products and services in accordance with the 
                subsidy codes of the World Trade Organization; and
                    (F) augment budgets for trade and development 
                programs in order to support prefeasibility or 
                feasibility studies for projects that utilize nuclear 
                energy products and services.
            (5) Authorization of appropriations.--There are authorized 
        to be appropriated to the Secretary for purposes of carrying 
        out this title $20,000,000 for fiscal years 2008 and 2009.
    (b) Credit for Qualifying Nuclear Power Manufacturing.--Subpart E 
of part IV of subchapter A of chapter 1 of the Internal Revenue Code is 
amended by inserting after section 48B the following new section:

``SEC. 48C. QUALIFYING NUCLEAR POWER MANUFACTURING CREDIT.

    ``(a) In General.--For purposes of section 46, the qualifying 
nuclear power manufacturing credit for any taxable year is an amount 
equal to 20 percent of the qualified investment for such taxable year.
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), the 
        qualified investment for any taxable year is the basis of 
        eligible property placed in service by the taxpayer during such 
        taxable year--
                    ``(A) which is either part of a qualifying nuclear 
                power manufacturing project or is qualifying nuclear 
                power manufacturing equipment,
                    ``(B)(i) the construction, reconstruction, or 
                erection of which is completed by the taxpayer, or
                    ``(ii) which is acquired by the taxpayer if the 
                original use of such property commences with the 
                taxpayer,
                    ``(C) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable, and
                    ``(D) which is placed in service on or before 
                December 31, 2015.
            ``(2) Special rule for certain subsidized property.--Rules 
        similar to section 48(a)(4) shall apply for purposes of this 
        section.
            ``(3) Certain qualified progress expenditures rules made 
        applicable.--Rules similar to the rules of subsections (c)(4) 
        and (d) of section 46 (as in effect on the day before the 
        enactment of the Revenue Reconciliation Act of 1990) shall 
        apply for purposes of this section.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualifying nuclear power manufacturing project.--The 
        term `qualifying nuclear power manufacturing project' means any 
        project which is designed primarily to enable the taxpayer to 
        produce or test equipment necessary for the construction or 
        operation of a nuclear power plant.
            ``(2) Qualifying nuclear power manufacturing equipment.--
        The term `qualifying nuclear power manufacturing equipment' 
        means machine tools and other similar equipment, including 
        computers and other peripheral equipment, acquired or 
        constructed primarily to enable the taxpayer to produce or test 
        equipment necessary for the construction or operation of a 
        nuclear power plant.
            ``(3) Project.--The term `project' includes any building 
        constructed to house qualifying nuclear power manufacturing 
        equipment.''.
    (c) Conforming Amendments.--
            (1) Additional investment credit.--Section 46 is amended 
        by--
                    (A) striking ``and'' at the end of paragraph (3);
                    (B) striking the period at the end of paragraph (4) 
                and inserting ``, and''; and
                    (C) inserting after paragraph (4) the following new 
                paragraph:
            ``(5) the qualifying nuclear power manufacturing credit.''.
            (2) Application of section 49.--Subparagraph (C) of section 
        49(a)(1) is amended by--
                    (A) striking ``and'' at the end of clause (iii);
                    (B) striking the period at the end of clause (iv) 
                and inserting ``, and''; and
                    (C) inserting after clause (iv) the following new 
                clause:
                            ``(v) the basis of any property which is 
                        part of a qualifying nuclear power equipment 
                        manufacturing project under section 48C.''.
            (3) Table of sections.--The table of sections preceding 
        section 46 is amended by inserting after the line for section 
        48B the following new line:

``Sec. 48C. Qualifying nuclear power manufacturing credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to property--
            (1) the construction, reconstruction, or erection of which 
        of began after the date of enactment; or
            (2) which was acquired by the taxpayer on or after the date 
        of enactment and not pursuant to a binding contract which was 
        in effect on the day prior to the date of enactment.

SEC. 305. NUCLEAR ENERGY WORKFORCE.

    Section 1101 of the Energy Policy Act of 2005 (42 U.S.C. 16411) is 
amended (1) by redesignating subsection (d) as subsection (e); and by 
inserting after subsection (c) the following:
    ``(d) Workforce Training.--
            ``(1) In general.--The Secretary of Labor, in cooperation 
        with the Secretary of Energy, shall promulgate regulations to 
        implement a program to provide workforce training to meet the 
        high demand for workers skilled in the nuclear utility and 
        nuclear energy products and services industries.
            ``(2) Consultation.--In carrying out this subsection, the 
        Secretary of Labor shall consult with representatives of the 
        nuclear utility and nuclear energy products and services 
        industries, and organized labor, concerning skills that are 
        needed in those industries.
            ``(3) Authorization of appropriations.--There are 
        authorized to be appropriated to the Secretary of Labor, 
        working in coordination with the Secretaries of Education and 
        Energy $20,000,000 for each of fiscal years 2008 through 2012 
        for use in implementing a program to provide workforce training 
        to meet the high demand for workers skilled in the nuclear 
        utility and nuclear energy products and services industries.''.

SEC. 306. LICENSING OF NEW NUCLEAR POWER PLANTS.

    Sections 189 and 185 of the Atomic Energy Act are amended thus:
            (1) Hearings and judicial review.--Section 189a.(1)(A) is 
        modified thus: ``In any proceeding under this Act, for the 
        granting, suspending, revoking, or amending of any license or 
        construction permit, or application to transfer control, and in 
        any proceeding for the issuance or modification of rules and 
        regulations dealing with the activities of licensees, and in 
        any proceeding for the payment of compensation, an award, or 
        royalties under section 153, 157, 186c., or 188, the Commission 
        shall grant a hearing upon the request of any person whose 
        interest may be affected by the proceeding, and shall admit any 
        such person as a party to such proceeding. The Commission may, 
        in the absence of a request therefor by any person whose 
        interest may be affected, issue a construction permit, an 
        operating license or an amendment to a construction permit or 
        an amendment to an operating license without a hearing, but 
        upon thirty days' notice and publication once in the Federal 
        Register of its intent to do so. The Commission may dispense 
        with such thirty days' notice and publication with respect to 
        any application for an amendment to a construction permit or an 
        amendment to an operating license upon a determination by the 
        Commission that the amendment involves no significant hazards 
        consideration.''.
            (2) Construction permits and operating licenses.--Section 
        185b is modified thus: ``After any public hearing held under 
        section 189a.(1)(A), the Commission shall issue to the 
        applicant a combined construction and operating license if the 
        application contains sufficient information to support the 
        issuance of a combined license and the Commission determines 
        that there is reasonable assurance that the facility will be 
        constructed and will operate in conformity with the license, 
        the provisions of this Act, and the Commission's rules and 
        regulations. The Commission shall identify within the combined 
        license the inspections, tests, and analyses, including those 
        applicable to emergency planning, that the licensee shall 
        perform, and the acceptance criteria that, if met, are 
        necessary and sufficient to provide reasonable assurance that 
        the facility has been constructed and will be operated in 
        conformity with the license, the provisions of this Act, and 
        the Commission's rules and regulations. Following issuance of 
        the combined license, the Commission shall ensure that the 
        prescribed inspections, tests, and analyses are performed and, 
        prior to operation of the facility, shall find that the 
        prescribed acceptance criteria are met. Any finding made under 
        this subsection shall not require a hearing except as provided 
        in section 189a.(1)(B).''.

SEC. 307. INVESTMENT TAX CREDIT FOR INVESTMENTS IN NUCLEAR POWER 
              FACILITIES.

    (a) New Credit for Nuclear Power Facilities.--Section 46 is amended 
by--
            (1) striking ``and'' at the end of paragraph (3);
            (2) striking the period at the end of paragraph (4) and 
        inserting ``, and''; and
            (3) inserting after paragraph (4) the following new 
        paragraph:
            ``(5) the nuclear power facility construction credit.''.
    (b) Nuclear Power Facility Construction Credit.--Subpart E of part 
IV of subchapter A of chapter 1 is amended by inserting after section 
48B the following new section:

``SEC. 48C. NUCLEAR POWER FACILITY CONSTRUCTION CREDIT.

    ``(a) In General.--For purposes of section 46, the nuclear power 
facility construction credit for any taxable year is 10 percent of the 
qualified nuclear power facility expenditures with respect to a 
qualified nuclear power facility.
    ``(b) When Expenditures Taken Into Account.--
            ``(1) In general.--Qualified nuclear power facility 
        expenditures shall be taken into account for the taxable year 
        in which the qualified nuclear power facility is placed in 
        service.
            ``(2) Coordination with subsection (c).--The amount which 
        would (but for this paragraph) be taken into account under 
        paragraph (1) with respect to any qualified nuclear power 
        facility shall be reduced (but not below zero) by any amount of 
        qualified nuclear power facility expenditures taken into 
        account under subsection (c) by the taxpayer or a predecessor 
        of the taxpayer (or, in the case of a sale and leaseback 
        described in section 50(a)(2)(C), by the lessee), to the extent 
        any amount so taken into account has not been required to be 
        recaptured under section 50(a).
    ``(c) Progress Expenditures.--
            ``(1) In general.--A taxpayer may elect to take into 
        account qualified nuclear power facility expenditures.
                    ``(A) Self-constructed property.--In the case of a 
                qualified nuclear power facility which is a self-
                constructed facility, in the taxable year for which 
                such expenditures are properly chargeable to capital 
                account with respect to such facility.
                    ``(B) Acquired facility.--In the case of a 
                qualified nuclear facility which is not self-
                constructed property, in the taxable year in which such 
                expenditures are paid.
            ``(2) Special rules for applying paragraph (1).--For 
        purposes of paragraph (1):
                    ``(A) Component parts, etc.--Property which is not 
                self-constructed property and which is to be a 
                component part of, or is otherwise to be included in, 
                any facility to which this subsection applies shall be 
                taken into account in accordance with paragraph (1)(B).
                    ``(B) Certain borrowing disregarded.--Any amount 
                borrowed directly or indirectly by the taxpayer on a 
                nonrecourse basis from the person constructing the 
                facility for the taxpayer shall not be treated as an 
                amount expended for such facility.
                    ``(C) Limitation for facilities or components which 
                are not self-constructed.--
                            ``(i) In general.--In the case of a 
                        facility or a component of a facility which is 
                        not self-constructed, the amount taken into 
                        account under paragraph (1)(B) for any taxable 
                        year shall not exceed the amount which 
                        represents the portion of the overall cost to 
                        the taxpayer of the facility or component of a 
                        facility which is properly attributable to the 
                        portion of the facility or component which is 
                        completed during such taxable year.
                            ``(ii) Carry-over of certain amounts.--In 
                        the case of a facility or component of a 
                        facility which is not self-constructed, if for 
                        the taxable year--
                                    ``(I) the amount which (but for 
                                clause (i)) would have been taken into 
                                account under paragraph (1)(B) exceeds 
                                the limitation of clause (i), then the 
                                amount of such excess shall be taken 
                                into account under paragraph (1)(B) for 
                                the succeeding taxable year; or
                                    ``(II) the limitation of clause (i) 
                                exceeds the amount taken into account 
                                under paragraph (1)(B), then the amount 
                                of such excess shall increase the 
                                limitation of clause (i) for the 
                                succeeding taxable year.
                    ``(D) Determination of percentage of completion.--
                The determination under subparagraph (C)(i) of the 
                portion of the overall cost to the taxpayer of the 
                construction which is properly attributable to 
                construction completed during any taxable year shall be 
                made on the basis of engineering or architectural 
                estimates or on the basis of cost accounting records. 
                Unless the taxpayer establishes otherwise by clear and 
                convincing evidence, the construction shall be deemed 
                to be completed not more rapidly than ratably over the 
                normal construction period.
                    ``(E) No progress expenditures for certain prior 
                periods.--No qualified nuclear facility expenditures 
                shall be taken into account under this subsection for 
                any period before the first day of the first taxable 
                year to which an election under this subsection 
                applies.
                    ``(F) No progress expenditures for property for 
                year it is placed in service, etc.--In the case of any 
                qualified nuclear facility, no qualified nuclear 
                facility expenditures shall be taken into account under 
                this subsection for the earlier of--
                            ``(i) the taxable year in which the 
                        facility is placed in service; or
                            ``(ii) the first taxable year for which 
                        recapture is required under section 50(a)(2) 
                        with respect to such facility, or for any 
                        taxable year thereafter.
            ``(3) Self-constructed.--For purposes of this subsection:
                    ``(A) The term `self-constructed facility' means 
                any facility if it is reasonable to believe that more 
                than half of the qualified nuclear facility 
                expenditures for such facility will be made directly by 
                the tax-payer.
                    ``(B) A component of a facility shall be treated as 
                not self-constructed if the cost of the component is at 
                least 5 percent of the expected cost of the facility 
                and the component is acquired by the taxpayer.
            ``(4) Election.--An election shall be made under this 
        section for a qualified nuclear power facility by claiming the 
        nuclear power facility construction credit for expenditures 
        described in paragraph (1) on a tax return filed by the due 
        date for such return (taking into account extensions). Such an 
        election shall apply to the taxable year for which made and all 
        subsequent taxable years. Such an election, once made, may be 
        revoked only with the consent of the Secretary.
    ``(d) Definitions and Special Rules.--For purposes of this section:
            ``(1) Qualified nuclear power facility.--The term 
        `qualified nuclear power facility' means an advanced nuclear 
        power facility, as defined in section 45J, the construction of 
        which was approved by the Nuclear Regulatory Commission on or 
        before December 31, 2013.
            ``(2) Qualified nuclear power facility expenditures.--
                    ``(A) In general.--The term `qualified nuclear 
                power facility expenditures' means any amount properly 
                chargeable to capital account--
                            ``(i) with respect to a qualified nuclear 
                        power facility;
                            ``(ii) for which depreciation is allowable 
                        under section 168; and
                            ``(iii) which are incurred before the 
                        qualified nuclear power facility is placed in 
                        service or in connection with the placement of 
                        such facility in service.
                    ``(B) Pre-effective date expenditures.--Qualified 
                nuclear power facility expenditures do not include any 
                expenditures incurred by the taxpayer before January 1, 
                2007, unless such expenditures constitute less than 20 
                percent of the total qualified nuclear power facility 
                expenditures (determined without regard to this 
                subparagraph) for the qualified nuclear power facility.
            ``(3) Delays and suspension of construction.--
                    ``(A) In general.--For purposes of applying this 
                section and section 50, a nuclear power facility that 
                is under construction shall cease to be treated as a 
                facility that will be a qualified nuclear power 
                facility as of the earlier of--
                            ``(i) the date on which the taxpayer 
                        decides to terminate construction of the 
                        facility; or
                            ``(ii) the last day of any 24-month period 
                        in which the taxpayer has failed to incur 
                        qualified nuclear power facility expenditures 
                        totaling at least 20 percent of the expected 
                        total cost of the nuclear power facility.
                    ``(B) Authority to waive.--The Secretary may waive 
                the application of clause (ii) of subparagraph (A) if 
                the Secretary determines that the taxpayer intended to 
                continue the construction of the qualified nuclear 
                power facility and the expenditures were not incurred 
                for reasons outside the control of the taxpayer.
                    ``(C) Resumption of construction.--If a nuclear 
                power facility that is under construction ceases to be 
                a qualified nuclear power facility by reason of 
                paragraph (2) and work is subsequently resumed on the 
                construction of such facility--
                            ``(i) the date work is subsequently resumed 
                        shall be treated as the date that construction 
                        began for purposes of paragraph (1); and
                            ``(ii) if the facility is a qualified 
                        nuclear power facility, the qualified nuclear 
                        power facility expenditures shall be determined 
                        without regard to any delay or temporary 
                        termination of construction of the facility.''.
    (c) Provisions Relating to Credit Recapture.--
            (1) Progress expenditure recapture rules.--
                    (A) Basic rules.--Subparagraph (A) of section 
                50(a)(2) is amended to read as follows:
                    ``(A) In general.--If during any taxable year any 
                building to which section 47(d) applied or any facility 
                to which section 48C(c) applied ceases (by reason of 
                sale or other disposition, cancellation or abandonment 
                of contract, or otherwise) to be, with respect to the 
                taxpayer, property which, when placed in service, will 
                be a qualified rehabilitated building or a qualified 
                nuclear power facility, then the tax under this chapter 
                for such taxable year shall be increased by an amount 
                equal to the aggregate decrease in the credits allowed 
                under section 38 for all prior taxable years which 
                would have resulted solely from reducing to zero the 
                credit determined under this subpart with respect to 
                such building or facility.''.
                    (B) Amendment to excess credit recapture rule.--
                Subparagraph (B) of section 50(a)(2) is amended by--
                            (i) inserting ``or paragraph (2) of section 
                        48C(b)'' after ``paragraph (2) of section 
                        47(b)'';
                            (ii) inserting ``or section 48C(b)(1)'' 
                        after ``section 47(b)(1)''; and
                            (iii) inserting ``or facility'' after 
                        ``building''.
                    (C) Amendment of sale and leaseback rule.--
                Subparagraph (C) of section 50(a)(2) is amended by--
                            (i) inserting ``or section 48C(c)'' after 
                        ``section 47(d)''; and
                            (ii) inserting ``or qualified nuclear power 
                        facility expenditures'' after ``qualified 
                        rehabilitation expenditures''.
                    (D) Other amendment.--Subparagraph (D) of section 
                50(a)(2) is amended by inserting ``or section 48C(c)'' 
                after ``section 47(d)''.
    (d) No Basis Adjustment.--Section 50(c) is amended by inserting at 
the end thereof the following new paragraph:
            ``(6) Nuclear power facility construction credit.--
        Paragraphs (1) and (2) shall not apply to the nuclear power 
        facility construction credit.''.
    (e) Technical Amendments.--The table of sections for subpart E of 
part IV of subchapter A of chapter 1 is amended by inserting after the 
line for section 48B the following new line:

``Sec. 48C. Nuclear power facility construction credit.''.
    (f) Effective Date.--The amendments made by this section shall be 
effective for expenditures incurred and property placed in service in 
taxable years beginning after the date of enactment.

SEC. 308. NATIONAL NUCLEAR ENERGY COUNCIL.

    (a) In General.--
            (1) The Secretary of Energy shall establish a National 
        Nuclear Energy Council (hereinafter the ``Council'').
            (2) The National Nuclear Energy Council shall be subject to 
        the requirements of the Federal Advisory Committee Act (5 
        U.S.C. Appendix 2).
    (b) Purpose.--The National Nuclear Energy Council shall--
            (1) serve in an advisory capacity to the Secretary of 
        Energy regarding nuclear energy on matters submitted to the 
        Council by the Secretary of Energy; and
            (2) advise, inform, and make recommendations to the 
        Secretary of Energy, and represent the views of the nuclear 
        energy industry with respect to any matter relating to nuclear 
        energy.
    (c) Membership and Organization.--
            (1) The members of the Council shall be appointed by the 
        Secretary of Energy.
            (2) The Council may establish such study and administrative 
        committees as it may deem appropriate. Study committees shall 
        only assist the Council in preparing its advice, information, 
        or recommendations to the Secretary of Energy. Administrative 
        committees shall be formed solely for the purpose of assisting 
        the Council or its Chairman in the management of the internal 
        affairs of the Council.
            (3) The officers of the Council shall consist of a 
        Chairman, a Vice Chairman, and such other officers as may be 
        approved by the Council. The Chairman and Vice Chairman must be 
        members of the Council and shall receive no compensation for 
        service as officers of the Council.
            (4) The Secretary of Energy shall be Cochairman of the 
        Council. If the Secretary of Energy designates a full-time, 
        salaried official of the Department of Energy as his alternate, 
        such alternate may exercise any duties of the Secretary of 
        Energy and may perform any function on the Council otherwise 
        reserved for the Secretary of Energy.
            (5) The Chairman and the Vice Chairman shall be elected by 
        the Council at its organizational meeting to serve until their 
        successors are elected at the next organizational meeting of 
        the Council.
    (d) Meetings.--
            (1) Regular meetings of the Council shall be held at least 
        twice each year at times determined by the Chairman and 
        approved by the Government Cochairman.
            (2) No meeting of the Council shall be held unless the 
        Government Cochairman approves the agenda thereof, approves the 
        calling thereof, and is present thereat.
            (3) The time and place of all Council meetings shall be 
        given general publicity and such meetings shall be open to the 
        public.
    (e) Studies by the Council.--
            (1) The Council may establish study committees to prepare 
        reports for the consideration of the Council pursuant to 
        requests from the Secretary of Energy for advice, information, 
        and recommendations.
            (2) The Secretary of Energy or a full-time employee of the 
        Department of Energy designated by the Secretary shall be the 
        Cochairman of each study committee.
            (3) The members of study committees shall be selected from 
        the Council membership on the basis of their training, 
        experience, and general qualifications to deal with the matters 
        assigned.

SEC. 309. TEMPORARY SPENT NUCLEAR FUEL STORAGE AGREEMENTS.

    (a) Authorization and Location.--The Secretary of Energy 
(Secretary) is authorized to initiate spent nuclear fuel storage 
agreements as provided herein.
            (1) No later than 180 days from the date of enactment of 
        this Act, representatives of a community may submit written 
        notice to the Secretary that the community is willing to host a 
        temporary spent nuclear fuel storage facility within its 
        jurisdiction.
            (2) Within 90 days of the receipt of the notification under 
        subsection (a)(1), the Secretary shall determine whether the 
        identified site is suitable for a temporary storage facility. 
        In determining the site's suitability, the Secretary will 
        evaluate technical feasibility and consider favorably local 
        support for collocating a temporary spent nuclear fuel storage 
        facility with facilities in-tended to develop and implement 
        advanced nuclear fuel cycle technologies.
    (b) Content of Agreements.--If the Secretary determines one or more 
sites to be suitable in accordance with subsection (a)(2), negotiation 
of a temporary spent nuclear fuel storage facility agreement shall 
proceed.
            (1) Any temporary spent nuclear fuel storage agreement 
        shall contain such terms and conditions, including financial, 
        institutional and such other arrangements as the Secretary and 
        community determine to be reasonable and appropriate.
            (2) Any temporary spent nuclear fuel storage agreement may 
        be amended only with the mutual consent of the parties to the 
        agreement.
    (c) Environmental Impact Statement.--Execution of a temporary spent 
nuclear fuel storage agreement shall not require preparation of an 
environmental impact statement under section 102(2)(C) of the National 
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) or require any 
environmental review under subparagraph (E) or (F) of section 102(2) of 
such Act (42 U.S.C. 4332(2)(E), (F)).

SEC. 310. IMPLEMENTATION OF TEMPORARY SPENT NUCLEAR FUEL STORAGE 
              AGREEMENTS.

    (a) In General.--Any temporary spent nuclear fuel storage agreement 
or agreements entered into under section 1 shall enter into force with 
respect to the United States if (and only if)--
            (1) the Secretary, at least 60 days before the day on which 
        he or she enters into the temporary spent nuclear fuel storage 
        agreement or agreements notifies the House of Representatives 
        and the Senate of his intention to enter into the agreement or 
        agreements, and promptly thereafter publishes notice of such 
        intention in the Federal Register;
            (2) the Governor of the State or States in which the 
        facility is proposed to be located submits written notice to 
        the Secretary that the Governor supports the temporary spent 
        nuclear fuel storage agreement; and
            (3) after entering into the agreement, the Secretary 
        submits to the House of Representatives and to the Senate a 
        copy of the final text of the agreement, together with--
                    (A) a draft of an implementing bill; and
                    (B) a statement of any administrative action 
                proposed to implement the agreement.
    (b) Application of Expedited Procedures to Implementing Bills.--The 
provisions of section 3 apply to implementing bills submitted with 
respect to temporary spent nuclear fuel storage agreements entered into 
and submitted pursuant to section 2.

SEC. 311. EXPEDITED PROCEDURES FOR CONGRESSIONAL REVIEW OF TEMPORARY 
              SPENT NUCLEAR FUEL STORAGE AGREEMENTS.

    (a) Rules of House of Representative and Senate.--The provisions of 
this subsection are enacted by the Congress--
            (1) as an exercise of the rulemaking power of the House of 
        Representatives and the Senate, respectively, and as such they 
        are deemed a part of the rules of each House, respectively, but 
        applicable only with respect to the procedure to be followed in 
        that House in the case of implementing bills de-scribed in 
        subsection (b)(2) of this section and approval resolutions 
        described in subsection (b)(3) of this section; and they 
        supersede other rules only to the extent that they are 
        inconsistent therewith; and
            (2) with full recognition of the constitutional right of 
        either House to change the rules (so far as relating to the 
        procedure of that House) at any time, in the same manner and to 
        the same extent as in the case of any other rule of that House.
    (b) Definitions.--For purposes of this section--
            (1) The term ``community'' means any entity of local 
        government appropriate, in terms of legal authority, for 
        negotiating and entering into temporary spent nuclear fuel 
        storage agreements provided for in section 1.
            (2) The term ``implementing bill'' means only a bill of 
        either House of Congress which is introduced as provided in 
        subsection (c) of this section with respect to one or more 
        temporary spent nuclear fuel storage agreements and which 
        contain--
                    (A) a provision approving such storage agreements;
                    (B) a provision approving the statement of 
                administrative action (if any) proposed to implement 
                such storage agreements;
                    (C) if changes in existing laws or new statutory 
                authority is required to implement such storage 
                agreement or agreements, provisions necessary or 
                appropriate to implement such agreement or agreements 
                either repealing or amending existing laws or providing 
                new statutory authority; and
                    (D) a provision containing revenue measures (if 
                any), by reason of which the bill must originate in the 
                House of Representatives as provided for in subsection 
                (c).
            (3) The term ``approval resolution'' means only a joint 
        resolution of the two Houses of the Congress, the matter after 
        the resolving clause of which is as follows: ``That the 
        Congress approves the temporary spent nuclear fuel storage 
        agreement between the Secretary of Energy and _________ on 
        ______,'' the first blank space being filled with the name of 
        the governor involved and the second blank space being filled 
        in with the appropriate date.
    (c) Introduction and Referral.--On the day on which the temporary 
spent nuclear fuel storage agreement is submitted to the House of 
Representatives and the Senate under this title, the implementing bill 
submitted by the Secretary with respect to such temporary spent nuclear 
fuel storage agreement shall be introduced (by request) in the House by 
the majority leader of the House, for himself and the minority leader 
of the House, or by Members of the House designated by the majority 
leader and minority leader of the House; and shall be introduced (by 
request) in the Senate by the majority leader of the Senate, for 
himself and the minority leader of the Senate, or by Members of the 
Senate designated by the majority leader and minority leader of the 
Senate. If either House is not in session on the day on which such 
temporary spent nuclear fuel storage agreement is submitted, the 
implementing bill shall be introduced in that House, as provided in the 
preceding sentence, on the first day thereafter on which that House is 
in session. Such bills shall be referred by the Presiding Officers of 
the respective Houses to the appropriate committee, or, in the case of 
a bill containing provisions within the jurisdiction of two or more 
committees, jointly to such committees for consideration of those 
provisions within their respective jurisdictions.
    (d) Amendments Prohibited.--No amendment to an implementing bill or 
approval resolution shall be in order in either the House of 
Representatives or the Senate; and no motion to suspend the application 
of this subsection shall be in order in either House, nor shall it be 
in order in either House for the Presiding Officer to entertain a 
request to suspend the application of this subsection by unanimous 
consent.
    (e) Period for Committee and Floor Consideration.--
            (1) Except as provided in subsection (e)(2), if the 
        committee or committees of either House to which an 
        implementing bill or approval resolution has been referred have 
        not reported it at the close of the 45th day after its 
        introduction, such committee or committees shall be 
        automatically discharged from further consideration of the bill 
        or resolution and it shall be placed on the appropriate 
        calendar. A vote on final passage of the bill or resolution 
        shall be taken in each House on or before the close of the 15th 
        day after the bill or resolution is reported by the committee 
        or committees of that House to which it was referred, or after 
        such committee or committees have been discharged from further 
        consideration of the bill or resolution. If prior to the 
        passage by one House of an implementing bill or approval 
        resolution of that House, that House receives the same 
        implementing bill or approval resolution from the other House, 
        then--
                    (A) the procedure in that House shall be the same 
                as if no implementation bill or approval resolution had 
                been received from the other House; but
                    (B) the vote on final passage shall be on the 
                implementing bill or approval resolution of the other 
                House.
            (2) For purposes of computing a number of days in either 
        House as provided for in subsection (e)(1), there shall be 
        excluded any day on which that House is not in session.
            (3) If the implementing bill contains one or more revenue 
        measures--
                    (A) the provisions of subsection (e)(1) shall not 
                apply; and
                    (B) the Senate shall not take final action on the 
                bill until it is received from the House.
    (f) Floor Consideration in the House.--
            (1) A motion in the House of Representatives to proceed to 
        the consideration of an implementing bill or approval 
        resolution shall be highly privileged and not debatable. An 
        amendment to the motion shall not be in order, nor shall it be 
        in order to move to reconsider the vote by which the motion is 
        agreed to or disagreed to.
            (2) Debate in the House of Representatives on an 
        implementing bill or approval resolution shall be limited to 
        not more than 10 hours, which shall be divided equally between 
        those favoring and those opposing the bill or resolution. A 
        motion further to limit debate shall not be debatable. It shall 
        not be in order to move to recommit an implementing bill or 
        approval resolution or to move to reconsider the vote by which 
        an implementing bill or approval resolution is agreed to or 
        disagreed to.
            (3) Motions to postpone, made in the House of 
        Representatives with respect to the consideration of an 
        implementing bill or approval resolution, and motions to 
        proceed to the consideration of other business, shall be 
        decided without debate. If a motion to proceed to consideration 
        is agreed to, such resolution shall remain unfinished business 
        of House until disposed of.
            (4) All appeals from the decisions of the Chair relating to 
        the application of the Rules of the House of Representatives to 
        the procedure relating to an implementing bill or approval 
        resolution shall be decided without debate.
            (5) Except to the extent specifically provided in the 
        preceding provisions of this subsection, consideration of an 
        implementing bill or approval resolution shall be governed by 
        the Rules of the House of Representatives applicable to other 
        bills and resolutions in similar circumstances.
    (g) Floor Consideration in the Senate.--
            (1) A motion in the Senate to proceed to the consideration 
        of an implementing bill or approval resolution shall be 
        privileged and not debatable. An amendment to the motion shall 
        not be in order, nor shall it be in order to move to reconsider 
        the vote by which the motion is agreed to or disagreed to.
            (2) Debate in the Senate on an implementing bill or 
        approval resolution, and all debatable motions and appeals in 
        connection therewith, shall be limited to not more than 10 
        hours. The time shall be equally divided between, and 
        controlled by, the majority leader and the minority leader or 
        their designees.
            (3) Debate in the Senate on any debatable motion or appeal 
        in connection with an implementing bill or approval resolution 
        shall be limited to not more than 1 hour, to be equally divided 
        between, and controlled by, the mover and the manager of the 
        bill or resolution, except that in the event the manager of the 
        bill or resolution is in favor of any such motion or appeal, 
        the time in opposition thereto shall be controlled by the 
        minority leader or his designee. Such leaders, or either of 
        them, may, from time under their control on the passage of an 
        implementing bill or approval resolution, allot additional time 
        to any Senator during the consideration of any debatable motion 
        or appeal.
            (4) A motion in the Senate to further limit debate is not 
        debatable. A motion to recommit an implementation bill or 
        approval resolution is not in order.

SEC. 312. CONTRACTING AND NUCLEAR WASTE FUND.

    Section 302 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 
10222) is amended--
            (1) in subsection (a)(1), by adding at the end the 
        following: ``For any civilian nuclear power reactor a license 
        application for which is filed with the Commission, pursuant to 
        its authority under section 103 or 104 of the Atomic Energy Act 
        of 1954, after the date of enactment of this Act, contracts 
        entered into under this section shall--
                    ``(A) except as provided in subsections 
                302(a)(1)(B), (C), (D), and (E), below, be generally 
                consistent with the terms and conditions of the 
                `Standard Contract for Disposal of Spent Nuclear Fuel 
                and/or High-Level Radioactive Waste,' as codified at 10 
                C.F.R. Part 961 and in effect on January 1, 2007;
                    ``(B) provide for the taking of title to, and for 
                the Secretary to dispose of, the high-level waste or 
                spent nuclear fuel involved beginning no later than 15 
                years following the start of commercial operation;
                    ``(C) contain no provisions providing for 
                adjustment of the 1.0 mil per kilowatt-hour fee 
                established by paragraph (2);
                    ``(D) be entered into no later than 60 days 
                following the docketing of the license application by 
                the Commission, or the date of enactment of this Act, 
                whichever is later;
                    ``(E) provide that, on a schedule consistent with 
                the Secretary's acceptance of spent nuclear fuel from 
                each civilian nuclear power reactor or site, and 
                completed not later than the Secretary's completing the 
                acceptance of all spent nuclear fuel from that 
                commercial nuclear power reactor or site, the Secretary 
                shall accept from each such reactor or site, all low-
                level radioactive waste defined in section 3(b)(1)(D) 
                of the Low-level Radioactive Waste Policy Act, as 
                amended, 42 U.S.C. 2021c(b)(1)(D).''; and
            (2) in subsection (a)(4), by striking all after ``herein.'' 
        in the second sentence;
            (3) in subsection (a)(6), by adding at the end the 
        following: ``Further, the Secretary shall offer to settle any 
        actions pending on the date of enactment of this Act for 
        damages resulting from failure to commence accepting spent 
        nuclear fuel or high-level radioactive waste on or before 
        January 31, 1998. Each offer to settle shall provide for the 
        payment of $150 to the other party to a contract for disposal 
        of spent nuclear fuel and high-level radioactive waste for each 
        kilogram of spent nuclear fuel which such party was or shall be 
        entitled to deliver to the Department in a particular year, 
        based on the following aggregate acceptance rates: 400 MTU for 
        1998; 600 MTU for 1999; 1,200 MTU for 2000; 2,000 MTU for 2001; 
        and 3,000 MTU for 2002 and thereafter; provided that the 
        Secretary shall adjust the payment amount per kilogram of spent 
        nuclear fuel under this subsection (a)(6) annually according to 
        the most recent Producer Price Index published by the 
        Department of Labor. Such aggregate acceptance rates shall be 
        allocated among parties to contracts with the United States 
        based upon the age of spent nuclear fuel, as measured by the 
        date of the discharge of such spent nuclear fuel from the 
        civilian nuclear power reactor. Such offer to settle also shall 
        include an annual payment to be determined by the Secretary to 
        any such party where a civilian nuclear power reactor has been 
        decommissioned, except for those portions of the facility that 
        cannot be decommissioned until removal of spent nuclear fuel 
        and high-level radioactive waste. The Secretary also shall 
        offer like compensation to parties to contracts entered into 
        pursuant to section 302 of the Nuclear Waste Policy Act of 1982 
        (42 U.S.C. 10222) who brought actions for damages prior to the 
        date of enactment of this Act, but which were no longer pending 
        as of said date, provided that such compensation shall be 
        reduced by the amount of any settlement or judgment received by 
        such party.''; and
            (4) in subsection (d), by adding at the end the following: 
        ``No amount may be expended by the Secretary from the Waste 
        Fund to carry out research and development activities on 
        advanced nuclear fuel cycle technologies.''.

SEC. 313. CONFIDENCE IN AVAILABILITY OF WASTE DISPOSAL.

    (a) Congressional Determination.--The Congress finds that--
            (1) there is reasonable assurance that high-level 
        radioactive waste and spent nuclear fuel generated in reactors 
        licensed by the Nuclear Regulatory Commission in the past, 
        currently, or in the future will be managed in a safe manner 
        without significant environmental impact until capacity for 
        ultimate disposal is available; and
            (2) the Federal Government is responsible and has 
        established a policy for the ultimate safe and environmentally 
        sound disposal of such high-level radioactive waste and spent 
        nuclear fuel.
    (b) Regulatory Consideration.--Notwithstanding any other provision 
of law, for the period following the licensed operation of a civilian 
nuclear power reactor or any facility for the treatment or storage of 
spent nuclear fuel or high-level radioactive waste, no consideration of 
the public health and safety, common defense and security, or 
environmental impacts of the storage of high-level radioactive waste 
and spent nuclear fuel generate d in reactors licensed by the Nuclear 
Regulatory Commission in the past, currently, or in the future, is 
required by the Department of Energy or the Nuclear Regulatory 
Commission in connection with the development, construction, and 
operation of, or any permit, license, license amendment, or siting 
approval for, a civilian nuclear power reactor or any facility for the 
treatment or storage of spent nuclear fuel or high-level radioactive 
waste. Nothing in this section shall affect the Department of Energy's 
and Nuclear Regulatory Commission's obligation to consider the public 
health and safety, common defense and security, and environmental 
impacts of storage during the period of licensed operation of a 
civilian nuclear power reactor or facility for the treatment or storage 
of spent nuclear fuel or high-level radioactive waste.

       TITLE IV--AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986

SEC. 401. CREDIT FOR INVESTMENT IN COAL-TO-LIQUID FUELS PROJECTS.

    (a) In General.--Section 46 of the Internal Revenue Code of 1986 
(relating to amount of credit) is amended by striking ``and'' at the 
end of paragraph (3), by striking the period at the end of paragraph 
(4) and inserting ``, and'', and by adding at the end the following new 
paragraph:
            ``(5) the qualifying coal-to-liquid fuels project 
        credit.''.
    (b) Amount of Credit.--Subpart E of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 (relating to rules for 
computing investment credit) is amended by inserting after section 48B 
the following new section:

``SEC. 48C. QUALIFYING COAL-TO-LIQUID FUELS PROJECT CREDIT.

    ``(a) In General.--For purposes of section 46, the qualifying coal-
to-liquid fuels project credit for any taxable year is an amount equal 
to 20 percent of the qualified investment for such taxable year.
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), the 
        qualified investment for any taxable year is the basis of 
        property placed in service by the taxpayer during such taxable 
        year which is part of a qualifying coal-to-liquid fuels 
        project--
                    ``(A)(i) the construction, reconstruction, or 
                erection of which is completed by the taxpayer, or
                    ``(ii) which is acquired by the taxpayer if the 
                original use of such property commences with the 
                taxpayer, and
                    ``(B) with respect to which depreciation (or 
                amortization in lieu of depreciation) is allowable.
            ``(2) Applicable rules.--For purposes of this section, 
        rules similar to the rules of subsection (a)(4) and (b) of 
        section 48 shall apply.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualifying coal-to-liquid fuels project.--The term 
        `qualifying coal-to-liquid fuels project' means any domestic 
        project which--
                    ``(A) employs either the class of reactions known 
                as Fischer-Tropsch or the Schobert process to produce 
                at least 10,000 barrels per day of transportation grade 
                liquid fuels from a feedstock that is primarily 
                domestic coal (including any property which allows for 
                the capture, transportation, or sequestration of by-
                products resulting from such process, including carbon 
                emissions), and
                    ``(B) any portion of the qualified investment in 
                which is certified under the qualifying coal-to-liquid 
                program as eligible for credit under this section in an 
                amount (not to exceed $200,000,000) determined by the 
                Secretary.
            ``(2) Coal.--The term `coal' means any carbonized or 
        semicarbonized matter, including peat.
    ``(d) Qualifying Coal-to-Liquid Fuels Project Program.--
            ``(1) In general.--The Secretary, in consultation with the 
        Secretary of Energy, shall establish a qualifying coal-to-
        liquid fuels project program to consider and award 
        certifications for qualified investment eligible for credits 
        under this section to 10 qualifying coal-to-liquid fuels 
        project sponsors under this section. The total qualified 
        investment which may be awarded eligibility for credit under 
        the program shall not exceed $2,000,000,000.
            ``(2) Period of issuance.--A certificate of eligibility 
        under paragraph (1) may be issued only during the 10-fiscal 
        year period beginning on October 1, 2007.
            ``(3) Selection criteria.--The Secretary shall not make a 
        competitive certification award for qualified investment for 
        credit eligibility under this section unless the recipient has 
        documented to the satisfaction of the Secretary that--
                    ``(A) the proposal of the award recipient is 
                financially viable,
                    ``(B) the recipient will provide sufficient 
                information to the Secretary for the Secretary to 
                ensure that the qualified investment is spent 
                efficiently and effectively,
                    ``(C) the fuels identified with respect to the 
                gasification technology for such project will comprise 
                at least 90 percent of the fuels required by the 
                project for the production of transportation grade 
                liquid fuels,
                    ``(D) the award recipient's project team is 
                competent in the planning and construction of coal 
                gasification facilities and familiar with operation of 
                either the Fischer-Tropsch process or the Schobert 
                process, with preference given to those recipients with 
                experience which demonstrates successful and reliable 
                operations of such process, and
                    ``(E) the award recipient has met other criteria 
                established and published by the Secretary.
    ``(e) Denial of Double Benefit.--No deduction or other credit shall 
be allowed with respect to the basis of any property taken into account 
in determining the credit allowed under this section.''.
    (c) Conforming Amendments.--
            (1) Section 49(a)(1)(C) of the Internal Revenue Code of 
        1986 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 after clause (iv) the following new 
        clause:
                            ``(v) the basis of any property which is 
                        part of a qualifying coal-to-liquid fuels 
                        project under section 48C.''.
            (2) The table of sections for subpart E of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 48B the following new item:

``Sec. 48C. Qualifying coal-to-liquid fuels project credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to periods after the date of the enactment of this Act, 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. 402. TEMPORARY EXPENSING FOR EQUIPMENT USED IN COAL-TO-LIQUID 
              FUELS PROCESS.

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

``SEC. 179F. ELECTION TO EXPENSE CERTAIN COAL-TO-LIQUID FUELS 
              FACILITIES.

    ``(a) Treatment as Expenses.--A taxpayer may elect to treat the 
cost of any qualified coal-to-liquid fuels process property as an 
expense which is not chargeable to capital account. Any cost so treated 
shall be allowed as a deduction for the taxable year in which the 
expense is incurred.
    ``(b) Election.--
            ``(1) In general.--An election under this section for any 
        taxable year shall be made on the taxpayer's return of the tax 
        imposed by this chapter for the taxable year. Such election 
        shall be made in such manner as the Secretary may by 
        regulations prescribe.
            ``(2) Election irrevocable.--Any election made under this 
        section may not be revoked except with the consent of the 
        Secretary.
    ``(c) Qualified Coal-to-Liquid Fuels Process Property.--The term 
`qualified coal-to-liquid fuels process property' means any property 
located in the United States--
            ``(1) which employs the Fischer-Tropsch process or the 
        Schobert process to produce transportation grade liquid fuels 
        from a feedstock that is primarily domestic coal (including any 
        property which allows for the capture, transportation, or 
        sequestration of by-products resulting from such process, 
        including carbon emissions),
            ``(2) the original use of which commences with the 
        taxpayer,
            ``(3) the construction of which--
                    ``(A) except as provided in subparagraph (B), is 
                subject to a binding construction contract entered into 
                after the date of the enactment of this section and 
                before January 1, 2011, but only if there was no 
                written binding construction contract entered into on 
                or before such date of enactment, or
                    ``(B) in the case of self-constructed property, 
                began after the date of the enactment of this section 
                and before January 1, 2011, and
            ``(4) which is placed in service by the taxpayer after the 
        date of the enactment of this section and before January 1, 
        2016.
    ``(d) Election To Allocate Deduction to Cooperative Owner.--If--
            ``(1) a taxpayer to which subsection (a) applies is an 
        organization to which part I of subchapter T applies, and
            ``(2) one or more persons directly holding an ownership 
        interest in the taxpayer are organizations to which part I of 
        subchapter T apply,
the taxpayer may elect to allocate all or a portion of the deduction 
allowable under subsection (a) to such persons. Such allocation shall 
be equal to the person's ratable share of the total amount allocated, 
determined on the basis of the person's ownership interest in the 
taxpayer. The taxable income of the taxpayer shall not be reduced under 
section 1382 by reason of any amount to which the preceding sentence 
applies.
    ``(e) Basis Reduction.--
            ``(1) In general.--For purposes of this title, if a 
        deduction is allowed under this section with respect to any 
        qualified coal-to-liquid fuels process property, the basis of 
        such property shall be reduced by the amount of the deduction 
        so allowed.
            ``(2) Ordinary income recapture.--For purposes of section 
        1245, the amount of the deduction allowable under subsection 
        (a) with respect to any property which is of a character 
        subject to the allowance for depreciation shall be treated as a 
        deduction allowed for depreciation under section 167.
    ``(f) Application With Other Deductions and Credits.--
            ``(1) Other deductions.--No deduction shall be allowed 
        under any other provision of this chapter with respect to any 
        expenditure with respect to which a deduction is allowed under 
        subsection (a) to the taxpayer.
            ``(2) Credits.--No credit shall be allowed under section 38 
        with respect to any amount for which a deduction is allowed 
        under subsection (a).
    ``(g) Reporting.--No deduction shall be allowed under subsection 
(a) to any taxpayer for any taxable year unless such taxpayer files 
with the Secretary a report containing such information with respect to 
the operation of the property of the taxpayer as the Secretary shall 
require.''.
    (b) Conforming Amendments.--
            (1) Section 1016(a) of the Internal Revenue Code of 1986 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 179F(e)(1).''.
            (2) Section 1245(a) of such Code is amended by inserting 
        ``179F,'' after ``179D,'' both places it appears in paragraphs 
        (2)(C) and (3)(C).
            (3) Section 263(a)(1) of such Code is amended by striking 
        ``or'' at the end of subparagraph (J), by striking the period 
        at the end of subparagraph (K) and inserting ``, or'', and by 
        inserting after subparagraph (K) the following new 
        subparagraph:
                    ``(L) expenditures for which a deduction is allowed 
                under section 179F.''.
            (4) Section 312(k)(3)(B) of such Code is amended by 
        striking ``or 179E'' each place it appears in the heading and 
        text and inserting ``179E, or 179F''.
            (5) The table of sections for part VI of subchapter B of 
        chapter 1 of such Code is amended by inserting after the item 
        relating to section 179E the following new item:

``Sec. 179F. Election to expense certain coal-to-liquid fuels 
                            facilities.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to properties placed in service after the date of the enactment 
of this Act.

SEC. 403. EXTENSION OF ALTERNATIVE FUEL CREDIT FOR FUEL DERIVED FROM 
              COAL THROUGH THE FISCHER-TROPSCH PROCESS OR THE SCHOBERT 
              PROCESS.

    (a) Alternative Fuel Credit.--Paragraph (4) of section 6426(d) of 
the Internal Revenue Code of 1986 is amended to read as follows:
            ``(4) Termination.--This subsection shall not apply to--
                    ``(A) any sale or use involving liquid fuel derived 
                from a feedstock that is primarily domestic coal 
                (including peat) through the Fischer-Tropsch process or 
                the Schobert process for any period after September 30, 
                2020,
                    ``(B) any sale or use involving liquified hydrogen 
                for any period after September 30, 2014, and
                    ``(C) any other sale or use for any period after 
                September 30, 2009.''.
    (b) Payments.--
            (1) In general.--Paragraph (5) of section 6427(e) of the 
        Internal Revenue Code of 1986 is amended by striking ``and'' 
        and the end of subparagraph (C), by striking the period at the 
        end of subparagraph (D) and inserting ``, and'', and by adding 
        at the end the following new subparagraph:
                    ``(E) any alternative fuel or alternative fuel 
                mixture (as so defined) involving liquid fuel derived 
                from coal (including peat) through the Fischer-Tropsch 
                process or the Schobert process sold or used after 
                September 30, 2020.''.
            (2) Conforming amendment.--Section 6427(e)(5)(C) of such 
        Code is amended by striking ``subparagraph (D)'' and inserting 
        ``subparagraphs (D) and (E)''.
                                 <all>