[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6670 Introduced in House (IH)]







110th CONGRESS
  2d Session
                                H. R. 6670

To open areas of the Outer Continental Shelf to oil and gas leasing, to 
    direct the Commodity Futures Trading Commission to utilize its 
  authority to curb immediately the role of excessive speculation in 
  energy markets, to require sales of light grade petroleum from the 
 Strategic Petroleum Reserve and acquisitions of equivalent volumes of 
             heavy grade petroleum, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 30, 2008

    Mr. Gene Green of Texas (for himself, Mr. Cuellar, Mr. Davis of 
 Alabama, Mr. Ortiz, Mr. Lampson, Mr. Boren, Mr. Costa, Mr. Rodriguez, 
 Mr. Cramer, Mr. Gonzalez, Mr. Cazayoux, Mr. Foster, Mr. Abercrombie, 
Mr. Hinojosa, Mr. Melancon, and Mr. Childers) introduced the following 
bill; which was referred to the Committee on Natural Resources, and in 
    addition to the Committees on Energy and Commerce, Science and 
Technology, Transportation and Infrastructure, Education and Labor, and 
Agriculture, 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 open areas of the Outer Continental Shelf to oil and gas leasing, to 
    direct the Commodity Futures Trading Commission to utilize its 
  authority to curb immediately the role of excessive speculation in 
  energy markets, to require sales of light grade petroleum from the 
 Strategic Petroleum Reserve and acquisitions of equivalent volumes of 
             heavy grade petroleum, 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 ``Long-Term Energy Assurance and 
Security Enhancement Act of 2008'' or the ``LEASE Act of 2008''.

          TITLE I--OUTER CONTINENTAL SHELF OIL AND GAS LEASING

       Subtitle A--Offshore Oil and Gas Leasing in Gulf of Mexico

SEC. 101. OFFSHORE OIL AND GAS LEASING IN CERTAIN AREAS OF THE GULF OF 
              MEXICO.

    (a) Opening of Certain Areas in Eastern Gulf of Mexico to Oil and 
Gas Leasing.--
            (1) In general.--Section 104(a) of the Gulf of Mexico 
        Energy Security Act of 2006 (43 U.S.C. 1331 note; Public Law 
        109-432) is amended--
                    (A) by striking paragraph (1);
                    (B) in paragraph (2), by striking ``125 miles'' and 
                inserting ``100 miles''; and
                    (C) by redesignating paragraphs (2) and (3) as 
                paragraphs (1) and (2), respectively.
            (2) Termination of restriction on use of funds.--Section 
        104 of division F of the Consolidated Appropriations Act, 2008 
        (Public Law 110-161; 121 Stat. 2118) is amended--
                    (A) by inserting ``and'' after ``North Atlantic;''; 
                and
                    (B) by striking ``; and the eastern'' and all that 
                follows and inserting a period.
            (3) Requirement to conduct lease sales.--As soon as 
        practicable, but not later than 1 year after the date of the 
        enactment of this Act, and annually thereafter, the Secretary 
        of the Interior shall conduct oil and gas lease sales under the 
        Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) for 
        areas of the Outer Continental Shelf in the Eastern Gulf of 
        Mexico areas that are available for leasing as a result of the 
        amendments made by paragraph (1).
            (4) Omission from leasing program.--Areas shall be offered 
        for lease under this subsection notwithstanding the omission of 
        the area from any outer Continental Shelf leasing program under 
        section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1344).
    (b) Limitations.--
            (1) Compliance with memorandum.--Any oil and gas leasing of 
        areas of the Outer Continental Shelf in the Eastern Gulf of 
        Mexico that are available for leasing as a result of the 
        amendments made by subsection (a) shall be conducted in 
        accordance with the document entitled ``Memorandum of Agreement 
        between the Department of Defense and the Department of the 
        Interior on Mutual Concerns On The Outer Continental Shelf'' 
        and dated July 2, 1983, and such revisions thereto as may be 
        agreed to by the Secretary of Defense and the Secretary of the 
        Interior.
            (2) Military mission line.--Notwithstanding subsection (a), 
        the United States reserves the right to designate by and 
        through the Secretary of Defense, with the approval of the 
        President, national defense areas on the Outer Continental 
        Shelf pursuant to section 12(d) of the Outer Continental Shelf 
        Lands Act (43 U.S.C. 1341(d)).

SEC. 102. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF REVENUES.

    (a) In General.--Notwithstanding section 9 of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1338) and subject to the other provisions of 
this section, for each applicable fiscal year, the Secretary of the 
Treasury shall deposit--
            (1) 25 percent of qualified Outer Continental Shelf 
        revenues in the general fund of the Treasury;
            (2) 25 percent of qualified Outer Continental Shelf 
        revenues in the Energy Independence and Security Fund 
        established by section 131; and
            (3) 50 percent of qualified Outer Continental Shelf 
        revenues in a special account in the Treasury, from which the 
        Secretary shall disburse--
                    (A) 75 percent to Gulf producing States in 
                accordance with subsection (b); and
                    (B) 25 percent to provide financial assistance to 
                States in accordance with section 6 of the Land and 
                Water Conservation Fund Act of 1965 (16 U.S.C. 460l-8), 
                which shall be considered income to the Land and Water 
                Conservation Fund for purposes of section 2 of that Act 
                (16 U.S.C. 460l-5).
    (b) Allocation Among Gulf Producing States and Coastal Political 
Subdivisions.--
            (1) Allocation among gulf producing states.--
                    (A) In general.--Subject to subparagraph (B), 
                effective for each fiscal year after fiscal year 2007, 
                the amount made available under subsection (a)(2)(A) 
                shall be allocated to each Gulf producing State in 
                amounts (based on a formula established by the 
                Secretary by regulation) that are inversely 
                proportional to the respective distances between the 
                point on the coastline of each Gulf producing State 
                that is closest to the geographic center of the 
                applicable leased tract and the geographic center of 
                the leased tract.
                    (B) Minimum allocation.--The amount allocated to a 
                Gulf producing State each fiscal year under 
                subparagraph (A) shall be at least 10 percent of the 
                amounts available under subsection (a)(2)(A).
            (2) Payments to coastal political subdivisions.--
                    (A) In general.--The Secretary shall pay 20 percent 
                of the allocable share of each Gulf producing State, as 
                determined under paragraph (1), to the coastal 
                political subdivisions of the Gulf producing State.
                    (B) Allocation.--The amount paid by the Secretary 
                to coastal political subdivisions under this paragraph 
                shall be allocated to each coastal political 
                subdivision in accordance with subparagraphs (B), (C), 
                and (E) of section 31(b)(4) of the Outer Continental 
                Shelf Lands Act (43 U.S.C. 1356a(b)(4)).
    (c) Timing.--The amounts required to be deposited under paragraph 
(2) of subsection (a) for the applicable fiscal year shall be made 
available in accordance with that paragraph during the fiscal year 
immediately following the applicable fiscal year.
    (d) Authorized Uses.--
            (1) In general.--Subject to paragraph (2), each Gulf 
        producing State and coastal political subdivision shall use all 
        amounts received under subsection (b) in accordance with all 
        applicable Federal and State laws, only for 1 or more of the 
        following purposes:
                    (A) Projects and activities for the purposes of 
                coastal protection, including conservation, coastal 
                restoration, hurricane protection, and infrastructure 
                directly affected by coastal wetland losses.
                    (B) Mitigation of damage to fish, wildlife, or 
                natural resources.
                    (C) Implementation of a federally approved marine, 
                coastal, or comprehensive conservation management plan.
                    (D) Mitigation of the impact of Outer Continental 
                Shelf activities through the funding of onshore 
                infrastructure projects.
                    (E) Planning assistance and the administrative 
                costs of complying with this section.
            (2) Limitation.--Not more than 3 percent of amounts 
        received by a Gulf producing State or coastal political 
        subdivision under subsection (b) may be used for the purposes 
        described in paragraph (1)(E).
    (e) Administration.--Amounts made available under subsection (a)(2) 
shall--
            (1) be made available, without further appropriation, in 
        accordance with this section;
            (2) remain available until expended; and
            (3) be in addition to any amounts appropriated under--
                    (A) the Outer Continental Shelf Lands Act (43 
                U.S.C. 1331 et seq.);
                    (B) the Land and Water Conservation Fund Act of 
                1965 (16 U.S.C. 460l-4 et seq.); or
                    (C) any other provision of law.
    (f) Limitations on Amount of Distributed Qualified Outer 
Continental Shelf Revenues.--
            (1) In general.--Subject to paragraph (2), the total amount 
        of qualified Outer Continental Shelf revenues made available 
        under subsection (a)(2) shall not exceed $500,000,000 for each 
        of fiscal years 2016 through 2055.
            (2) Pro rata reductions.--If paragraph (1) limits the 
        amount of qualified Outer Continental Shelf revenue that would 
        be paid under subparagraphs (A) and (B) of subsection (a)(2)--
                    (A) the Secretary shall reduce the amount of 
                qualified Outer Continental Shelf revenue provided to 
                each recipient on a pro rata basis; and
                    (B) any remainder of the qualified Outer 
                Continental Shelf revenues shall revert to the general 
                fund of the Treasury.

SEC. 103. DEFINITIONS.

    In this subtitle:
            (1) Coastal political subdivision.--The term ``coastal 
        political subdivision'' means a political subdivision of a Gulf 
        producing State any part of which political subdivision is--
                    (A) within the coastal zone (as defined in section 
                304 of the Coastal Zone Management Act of 1972 (16 
                U.S.C. 1453)) of the Gulf producing State as of the 
                date of enactment of this Act; and
                    (B) not more than 200 nautical miles from the 
                geographic center of any leased tract.
            (2) Gulf producing state.--The term ``Gulf producing 
        State'' means each of the States of Alabama, Florida, 
        Louisiana, Mississippi, and Texas.
            (3) Military mission line.--The term ``Military Mission 
        Line'' means the north-south line at 8641'31'' W. longitude.
            (4) Outer continental shelf.--The term ``Outer Continental 
        Shelf'' has the meaning given the term ``outer Continental 
        Shelf'' under section 2 of the Outer Continental Shelf Lands 
        Act (43 U.S.C. 1331).
            (5) Qualified outer continental shelf revenues.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``qualified Outer Continental Shelf 
                revenues'' means all rentals, royalties, bonus bids, 
                and other sums due and payable to the United States 
                under oil and gases leases of the Outer Continental 
                Shelf issued as a result of enactment of this subtitle.
                    (B) Exclusions.--The term ``qualified Outer 
                Continental Shelf revenues'' does not include--
                            (i) revenues from the forfeiture of a bond 
                        or other surety securing obligations other than 
                        royalties, civil penalties, or royalties taken 
                        by the Secretary in-kind and not sold; or
                            (ii) revenues generated from leases subject 
                        to section 8(g) of the Outer Continental Shelf 
                        Lands Act (43 U.S.C. 1337(g)).
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

SEC. 104. PROTECTION OF THE ENVIRONMENT AND CONSERVATION OF THE NATURAL 
              RESOURCES OF THE OUTER CONTINENTAL SHELF.

    The Secretary of the Interior shall ensure that any activity under 
this subtitle is carried out in a manner that provides for the 
protection of the environment and the conservation of the natural 
resources of the Outer Continental Shelf, and shall review all 
otherwise applicable regulations to ensure environmentally sound oil 
and gas operations on the Outer Continental Shelf.

    Subtitle B--Offshore Oil and Gas Leasing Outside Gulf of Mexico

SEC. 121. ESTABLISHMENT OF PROJECTED SEAWARD LATERAL STATE BOUNDARY 
              LINES ON THE OCS.

    Not later than one year after the date of the enactment of this 
Act, the Secretary of the Interior shall by regulation delineate the 
lateral boundaries between coastal states in areas of the Outer 
Continental Shelf that are outside the Gulf of Mexico and that are 
under exclusive Federal jurisdiction for purposes of leasing of areas 
for exploration, development, and production of oil and natural gas.

SEC. 122. ASSESSMENTS OF OIL AND GAS RESOURCES OF THE OCS.

    (a) In General.--On or after the effective date of regulations 
issued by the Secretary of the Interior under section 121, the Governor 
of a coastal State may, if authorized by a law of the State enacted 
after the date of enactment of this Act, submit to the Secretary of the 
Interior a request that the Secretary conduct an assessment of the oil 
and gas resources of any areas of the Outer Continental Shelf located--
            (1) outside the Gulf of Mexico;
            (2) within the seaward lateral boundaries of the State; and
            (3) between 25 miles and 100 miles from the coastline of 
        the State.
    (b) Assessment Options.--A State may request that the assessment be 
based on--
            (1) new data using the best available technology, including 
        seismic technology but not including drilling; or
            (2) the best available data that exists on the date the 
        request is approved.
    (c) Action by Secretary.--Not later than the end of the 90-day 
period beginning on the date of receipt of a request under this 
section, the Secretary shall--
            (1) if the request is made pursuant to subsection (b)(1)--
                    (A) approve the request; or
                    (B) disapprove the request if the Secretary 
                determines that a resource assessment would create 
                unreasonable risk of harm to the marine, human, or 
                coastal environment of the State; or
            (2) approve the request if the request is made pursuant to 
        subsection (b)(2).
    (d) Completion of Assessment.--The Secretary shall--
            (1) in the case of an assessment requested pursuant to 
        subsection (b)(1)--
                    (A) complete the resource assessment within 5 years 
                after the date on which the request is approved; and
                    (B) submit annual progress reports on the 
                assessment to the State and to the Congress; and
            (2) in the case of an assessment requested pursuant to 
        subsection (b)(2), complete the assessment within one year 
        after the date on which the request is approved.

SEC. 123. TERMINATION OF MORATORIA AND WITHDRAWAL.

    (a) Termination of Moratoria and Withdrawals.--All provisions of 
Federal law that prohibit the expenditure of appropriated funds to 
conduct oil and natural gas leasing and preleasing activities shall 
have no force or effect--
            (1) with respect to any area of the Outer Continental Shelf 
        located outside the Gulf of Mexico and more than 100 miles from 
        the coastline, effective upon the enactment of this Act; and
            (2) with respect to any area of the Outer Continental Shelf 
        located outside the Gulf of Mexico within the area that is the 
        subject of a request of a coastal state authorized under 
        subsection (b), effective upon the date the request is approved 
        (or deemed approved) in accordance with that subsection.
    (b) Option To Request Leasing.--
            (1) In general.--On or after the effective date of 
        regulations issued by the Secretary of the Interior under 
        section 121, the Governor of a coastal State may, if authorized 
        by a law of the coastal State enacted after the date of the 
        enactment of this Act, submit to the Secretary of the Interior 
        a request that the Secretary conduct oil and gas leasing of any 
        area of the Outer Continental Shelf under the Outer Continental 
        Shelf Lands Act (43 U.S.C. 1331 et seq.) that is located--
                    (A) outside the Gulf of Mexico;
                    (B) within the seaward lateral boundaries of the 
                State; and
                    (C) between 25 miles and 100 miles from the 
                coastline.
            (2) Action by secretary.--Not later than the end of the 2-
        year period beginning on the date of receipt of a request under 
        paragraph (1), the Secretary shall--
                    (A) approve the request; or
                    (B) disapprove the request if the Secretary 
                determines that leasing would create unreasonable risk 
                of harm to the marine, human, or coastal environment of 
                the State.
            (3) Failure to act.--If Secretary fails to approve or 
        disapprove a request under paragraph (1) within the period 
        described in paragraph (2), the Secretary is deemed to have 
        approved the request.
    (c) Initiation of Leasing.--The Secretary shall conduct leasing of 
each area of the Outer Continental Shelf that is available for leasing 
as a result of the enactment of subsection (a) by as soon as possible 
after the date the area is available.
    (d) Omission From Leasing Program.--Areas shall be offered for 
lease under this section notwithstanding the omission of the areas from 
any outer Continental Shelf leasing program under section 18 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1344)

SEC. 124. DISPOSITION OF QUALIFIED OUTER CONTINENTAL SHELF REVENUES.

    (a) In General.--Notwithstanding section 9 of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1338) and subject to the other provisions of 
this section, for each applicable fiscal year, the Secretary of the 
Treasury shall deposit--
            (1) 25 percent of qualified Outer Continental Shelf 
        revenues in the general fund of the Treasury;
            (2) 25 percent of qualified Outer Continental Shelf 
        revenues in the Energy Independence and Security Fund 
        established by section 131; and
            (3) 50 percent of qualified Outer Continental Shelf 
        revenues in a special account in the Treasury from which the 
        Secretary shall disburse--
                    (A) 75 percent to States in accordance with 
                subsection (b); and
                    (B) 25 percent to provide financial assistance to 
                States in accordance with section 6 of the Land and 
                Water Conservation Fund Act of 1965 (16 U.S.C. 460l-8), 
                which shall be considered income to the Land and Water 
                Conservation Fund for purposes of section 2 of that Act 
                (16 U.S.C. 460l-5).
    (b) Allocation Among States and Coastal Political Subdivisions.--
            (1) Allocation among producing states.--
                    (A) Revenues attributable to lease tracts located 
                within 100 miles of the coastline.--Subject to 
                subparagraph (C), effective for each fiscal year after 
                fiscal year 2007, the amount made available under 
                subsection (a)(3)(A) that is attributable to leased 
                tracts located within 100 miles of the coastline shall 
                be allocated to producing States in amounts (determined 
                under a formula established by the Secretary by 
                regulation) that are inversely proportional to the 
                respective distances between the point on the coastline 
                of each producing State that is closest to the 
                geographic center of the applicable leased tract and 
                the geographic center of the leased tract.
                    (B) Revenues attributable to lease tracts located 
                more than 100 miles from the coastline.--Subject to 
                subparagraph (C), effective for each fiscal year after 
                fiscal year 2007, the amount made available under 
                subsection (a)(3)(A) that is attributable to a leased 
                tract located more than 100 miles from the coastline 
                shall be allocated to States having a point on the 
                coastline that is within 200 miles of the geographic 
                center of the leased tract, in amounts (determined 
                under a formula established by the Secretary by 
                regulation) that are inversely proportional to the 
                respective distances between the point on the coastline 
                of each State that is closest to the geographic center 
                of the applicable leased tract and the geographic 
                center of the leased tract.
                    (C) Minimum allocation.--The amount allocated to a 
                State each fiscal year under each of subparagraphs (A) 
                and (B) shall be at least 5 percent of the amounts 
                allocated under that subparagraph for that fiscal year.
            (2) Payments to coastal political subdivisions.--
                    (A) In general.--The Secretary shall pay 20 percent 
                of the allocable share of each State, as determined 
                under paragraph (1), to the coastal political 
                subdivisions of the State.
                    (B) Allocation.--The amount paid by the Secretary 
                to coastal political subdivisions under this paragraph 
                shall be allocated to each coastal political 
                subdivision in accordance with subparagraphs (B), (C), 
                and (E) of section 31(b)(4) of the Outer Continental 
                Shelf Lands Act (43 U.S.C. 1356a(b)(4)).
    (c) Timing.--The amounts required to be deposited under paragraph 
(2) of subsection (a) for the applicable fiscal year shall be made 
available in accordance with that paragraph during the fiscal year 
immediately following the applicable fiscal year.
    (d) Authorized Uses.--
            (1) In general.--Subject to paragraph (2), each State and 
        coastal political subdivision shall use all amounts received 
        under subsection (b) in accordance with all applicable Federal 
        and State laws, only for 1 or more of the following purposes:
                    (A) Projects and activities for the purposes of 
                coastal protection, including conservation, coastal 
                restoration, hurricane protection, and infrastructure 
                directly affected by coastal wetland losses.
                    (B) Mitigation of damage to fish, wildlife, or 
                natural resources.
                    (C) Implementation of a federally approved marine, 
                coastal, or comprehensive conservation management plan.
                    (D) Mitigation of the impact of Outer Continental 
                Shelf activities through the funding of onshore 
                infrastructure projects.
                    (E) Planning assistance and the administrative 
                costs of complying with this section.
            (2) Limitation.--Not more than 3 percent of amounts 
        received by a State or coastal political subdivision under 
        subsection (b) may be used for the purposes described in 
        paragraph (1)(E).
    (e) Administration.--Amounts made available under subsection (a)(2) 
shall--
            (1) be made available, without further appropriation, in 
        accordance with this section;
            (2) remain available until expended; and
            (3) be in addition to any amounts appropriated under--
                    (A) the Outer Continental Shelf Lands Act (43 
                U.S.C. 1331 et seq.);
                    (B) the Land and Water Conservation Fund Act of 
                1965 (16 U.S.C. 460l-4 et seq.); or
                    (C) any other provision of law.

SEC. 125. PROTECTION OF THE ENVIRONMENT AND CONSERVATION OF THE NATURAL 
              RESOURCES OF THE OUTER CONTINENTAL SHELF.

    The Secretary of the Interior shall ensure that any activity under 
this subtitle is carried out in a manner that provides for the 
protection of the environment and the conservation of the natural 
resources of the Outer Continental Shelf, and shall review all 
otherwise applicable regulations to ensure environmentally sound oil 
and gas operations on the Outer Continental Shelf.

SEC. 126. DEFINITIONS.

    In this subtitle:
            (1) Coastal political subdivision.--The term ``coastal 
        political subdivision'' means a political subdivision of a 
        State any part of which political subdivision is--
                    (A) within the coastal zone (as defined in section 
                304 of the Coastal Zone Management Act of 1972 (16 
                U.S.C. 1453)) of the State as of the date of enactment 
                of this Act; and
                    (B) not more than 200 nautical miles from the 
                geographic center of any leased tract.
            (2) Outer continental shelf.--The term ``Outer Continental 
        Shelf'' has the meaning the term ``outer Continental Shelf'' 
        under section 2 of the Outer Continental Shelf Lands Act (43 
        U.S.C. 1331).
            (3) Producing state.--The term ``producing State''--
                    (A) means any State within the lateral boundaries 
                of which (as determined under section 121) there is any 
                tract that is subject to a Federal oil and gas lease 
                issued as a result of enactment of this subtitle; and
                    (B) does not include the States of Alabama, 
                Louisiana, Mississippi, and Texas.
            (4) Qualified outer continental shelf revenues.--
                    (A) In general.--Except as provided in subparagraph 
                (B), the term ``qualified Outer Continental Shelf 
                revenues'' means all rentals, royalties, bonus bids, 
                and other sums due and payable to the United States 
                under oil and gases leases of the Outer Continental 
                Shelf issued as a result of enactment of this subtitle.
                    (B) Exclusions.--The term ``qualified Outer 
                Continental Shelf revenues'' does not include--
                            (i) revenues from the forfeiture of a bond 
                        or other surety securing obligations other than 
                        royalties, civil penalties, or royalties taken 
                        by the Secretary in-kind and not sold; or
                            (ii) revenues generated from leases subject 
                        to section 8(g) of the Outer Continental Shelf 
                        Lands Act (43 U.S.C. 1337(g)).
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

           Subtitle C--Energy Independence and Security Fund

SEC. 131. ENERGY INDEPENDENCE AND SECURITY FUND.

    (a) Establishment.--There is established in the Treasury a separate 
account which shall be known as the Energy Independence and Security 
Fund.
    (b) Contents.--The account shall consist of such amounts as are 
deposited into it under this title.
    (c) Distribution of Funds.--There shall be transferred from the 
Fund each fiscal year and available for expenditure, without further 
appropriation and without fiscal year limitation, all of the amounts 
deposited into the Fund in that fiscal year, in equal amounts, as 
follows:
            (1) Assessment of oil and gas resources.--An amount to the 
        Secretary of the Interior for assessments of oil and gas 
        resources under section 122.
            (2) Wind energy research and development.--An amount to the 
        account ``Energy Efficiency and Renewable Energy'', to remain 
        available until expended, for necessary expenses for a program 
        to support the development of next-generation wind turbines, 
        including turbines capable of operating in areas with low wind 
        speeds, as authorized in section 931(a)(2)(B) of the Energy 
        Policy Act of 2005 (42 U.S.C. 16231(a)(2)(B)).
            (3) Solar energy research and development.--An amount to 
        the account ``Energy Efficiency and Renewable Energy'', to 
        remain available until expended, for necessary expenses for a 
        program to accelerate the research, development, demonstration, 
        and deployment of solar energy technologies, and public 
        education and outreach materials pursuant to such program, as 
        authorized by section 931(a)(2)(A) of the Energy Policy Act of 
        2005 (42 U.S.C. 16231(a)(2)(A)).
            (4) Low income weatherization.--An amount to the account 
        ``Weatherization Assistance Program'', to remain available 
        until expended, for necessary expenses for a program to 
        weatherize low income housing, as authorized by section 411 of 
        the Energy Independence and Security Act of 2007 (Public Law 
        110-140).
            (5) Marine and hydrokinetic renewable electric energy.--An 
        amount to the account ``Energy Efficiency and Renewable 
        Energy'', to remain available until expended, for necessary 
        expenses for a program to accelerate the research, development, 
        demonstration, and deployment of ocean and wave energy, 
        including hydrokinetic renewable energy, as authorized by 
        section 931 of the Energy Policy Act of 2005 (42 U.S.C. 16231) 
        and section 636 of the Energy Independence and Security Act of 
        2007 (42 U.S.C. 17215).
            (6) Advanced research projects agency--energy.--An amount 
        to the account ``Energy Transformation Acceleration Fund'', 
        established under section 5012(m) of the America COMPETES Act 
        (42 U.S.C. 16538(m), to remain available until expended.
            (7) Advanced vehicles research, development, and 
        demonstration.--An amount to the account ``Energy Efficiency 
        and Renewable Energy'', to remain available until expended, for 
        necessary expenses for research, development, and demonstration 
        on advanced, cost-effective technologies to improve the energy 
        efficiency and environmental performance of vehicles, as 
        authorized in section 911(a)(2)(A) of the Energy Policy Act of 
        2005 (42 U.S.C. 16191(a)(2)(A)).
            (8) Geothermal energy development.--An amount to the 
        account ``Energy Efficiency and Renewable Energy'', to remain 
        available until expended, for necessary expenses for geothermal 
        research and development activities to be managed by the 
        National Renewable Energy Laboratory, as authorized by sections 
        613, 614, 615, and 616 of the Energy Independence and Security 
        Act of 2007 (42 U.S.C. 17192-95) and section 931(a)(2)(C) of 
        the Energy Policy Act of 2005 (42 U.S.C. 16231(a)(2)(C)).
            (9) Carbon capture and storage.--An amount to the account 
        ``Fossil Energy Research and Development'', to remain available 
        until expended, for necessary expenses for a program of 
        demonstration projects of carbon capture and storage, and for a 
        research program to address public health, safety, and 
        environmental impacts, as authorized by section 963 of the 
        Energy Policy Act of 2005 (42 U.S.C. 16293) and sections 703 
        and 707 of the Energy Independence and Security Act of 2007 (42 
        U.S.C. 17251, 17255).
            (10) Nonconventional domestic natural gas production and 
        environmental research.--
                    (A) An amount to the account authorized by section 
                999H(e) of the Energy Policy Act of 2005 (42 U.S.C. 
                16378(e)), to remain available until expended.
                    (B) An amount to the account ``Fossil Energy 
                Research and Development'', to remain available until 
                expended, for necessary expenses for a program of 
                basin-oriented assessments and public and private 
                partnerships involving States and industry to foster 
                the development of regional advanced technological, 
                regulatory, and economic development strategies for the 
                efficient and environmentally sustainable recovery and 
                market delivery of natural gas and  domestic petroleum 
                resources within the United States, and for support for 
                the Stripper Well Consortium.
            (11) Hydrogen research and development.--An amount to the 
        account ``Energy Efficiency and Renewable Energy'', to remain 
        available until expended, for necessary expenses for the 
        Department of Energy's H-Prize Program, as authorized by 
        section 1008(f) of the Energy Policy Act of 2005 (42 U.S.C. 
        16396(f)).
            (12) Energy storage for transportation and electric 
        power.--
                    (A) An amount to the account ``Basic Energy 
                Sciences'', to remain available until expended, for 
                necessary expenses for a program to accelerate basic 
                research on energy storage systems to support electric 
                drive vehicles, stationary applications, and 
                electricity transmission and distribution, as 
                authorized by section 641(p)(1) of the Energy 
                Independence and Security Act of 2007 (42 U.S.C. 
                17231(p)(1)).
                    (B) An amount to the account ``Energy Efficiency 
                and Renewable Energy'', to remain available until 
                expended, including--
                            (i) for a program to accelerate applied 
                        research on energy storage systems to support 
                        electric drive vehicles, stationary 
                        applications, and electricity transmission and 
                        distribution as authorized by section 641(p)(2) 
                        of the Energy Independence and Security Act of 
                        2007 (42 U.S.C. 17231(p)(2));
                            (ii) for energy storage systems 
                        demonstrations as authorized by section 
                        641(p)(4) of the Energy Independence and 
                        Security Act of 2007 (42 U.S.C. 17231(p)(4)); 
                        and
                            (iii) for vehicle energy storage systems 
                        demonstrations as authorized by section 
                        641(p)(5) of the Energy Independence and 
                        Security Act of 2007 (42 U.S.C. 17231(p)(5)).
            (13) Low income home energy assistance programs.--An amount 
        to the Secretary of Health and Human Services for allotment 
        under section 2604(a) through (d) of the Low-Income Home Energy 
        Assistance Act of 1981 (42 U.S.C. 8623(a)-(d)).
            (14) Industrial energy efficiency research and 
        development.--An amount to the account ``Energy Efficiency and 
        Renewable Energy'', to remain available until expended, for 
        necessary expenses for a program to accelerate the research, 
        development, demonstration, and deployment of new technologies 
        to improve the energy efficiency and reduce greenhouse gas 
        emissions from industrial processes, as authorized in section 
        911(a)(2)(C) of the Energy Policy Act of 2005 (42 U.S.C. 
        16191(a)(2)(C)) and in section 452 of the Energy Independence 
        and Security Act of 2007 (Public Law 110-40).
            (15) Building energy efficiency research and development.--
        An amount to the account ``Energy Efficiency and Renewable 
        Energy'', to remain available until expended, for necessary 
        expenses for a program to accelerate the research, development, 
        demonstration, and deployment of new technologies to improve 
        the energy efficiency and reduce greenhouse gas emissions from 
        buildings, as authorized in section 422 of the Energy 
        Independence and Security Act of 2007 (Public Law 110-140).
            (16) Public transportation urbanized area formula grants.--
        An amount to the Secretary of Transportation, to remain 
        available until expended, for necessary expenses for a program 
        to promote public transportation in urbanized areas, as 
        authorized by section 5307 of such title, which shall be 
        apportioned in accordance with section 5336 (other than 
        subsections (i)(1) and (j)) of such title.
            (17) Public transportation formula grants for other than 
        urbanized areas.--An amount to the Secretary of Transportation, 
        to remain available until expended, for necessary expenses for 
        a program to promote public transportation in areas other than 
        urbanized areas, as authorized by section 5311 of such title, 
        which shall be apportioned in accordance with such section 
        5311.

            TITLE II--CURBING SPECULATION IN ENERGY MARKETS

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Energy Markets Emergency Act of 
2008''.

SEC. 202. ENERGY MARKETS.

    (a) Findings.--The Congress finds as follows:
            (1) The Commodity Futures Trading Commission was created as 
        an independent agency, in 1974, with the mandate to enforce and 
        administer the Commodity Exchange Act, to ensure market 
        integrity, to protect market users from fraud and abusive 
        trading practices, and to prevent and prosecute manipulation of 
        the price of any commodity in interstate commerce.
            (2) Congress has given the Commodity Futures Trading 
        Commission authority under the Commodity Exchange Act to take 
        necessary actions to address market emergencies.
            (3) The Commodity Futures Trading Commission may use its 
        emergency authority with respect to any major market 
        disturbance which prevents the market from accurately 
        reflecting the forces of supply and demand for a commodity.
            (4) Congress has declared, in section 4a of the Commodity 
        Exchange Act, that excessive speculation imposes an undue and 
        unnecessary burden on interstate commerce.
            (5) On June 6, 2008, the price of crude oil traded on the 
        New York Mercantile Exchange hit an all-time record of $139.12 
        per barrel.
            (6) The average price of a barrel of crude oil in 2007 was 
        $72, and the average price of a barrel of crude oil to date in 
        2008 is $109.
            (7) Heating oil futures contracts have risen in price from 
        $2.97 to $3.81 during the March through May contract months.
            (8) United States airlines are forecast to spend 
        $61,200,000,000 on jet fuel in 2008, which is $20,000,000,000 
        more than they spent for jet fuel in 2007.
            (9) According to the American Automobile Association--
                    (A) families and businesses are paying an average 
                of $4.07 per gallon for regular gasoline, which is near 
                the all-time high and is more than double the price in 
                2001; and
                    (B) truckers and farmers are paying an average of 
                $4.77 per gallon for diesel fuel, which is near the 
                all-time high and triple the price in 2001.
            (10) During this decade, energy demand has been steadily on 
        the rise in nations such as China and other Asian exporting 
        nations.
            (11) In a May 2008 report, the International Monetary Fund 
        raised the possibility that speculation has played a 
        significant role in the run-up of oil prices, and stated ``It 
        is hard to explain current oil prices in terms of fundamentals 
        alone. The recent surge in the oil price seems to go well 
        beyond what would be indicated by the growth of the world 
        economy.''.
    (b) Direction From Congress.--The Commodity Futures Trading 
Commission shall utilize all its authority, including its emergency 
powers, to--
            (1) curb immediately the role of excessive speculation in 
        any contract market within the jurisdiction and control of the 
        Commodity Futures Trading Commission, on or through which 
        energy futures or swaps are traded; and
            (2) eliminate excessive speculation, price distortion, 
        sudden or unreasonable fluctuations or unwarranted changes in 
        prices, or other unlawful activity that is causing major market 
        disturbances that prevent the market from accurately reflecting 
        the forces of supply and demand for energy commodities.

           TITLE III--SALES FROM STRATEGIC PETROLEUM RESERVE

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Consumer Energy Supply Act of 
2008''.

SEC. 302. DEFINITIONS.

    In this title--
            (1) the term ``light grade petroleum'' means crude oil with 
        an API gravity of 30 degrees or higher;
            (2) the term ``heavy grade petroleum'' means crude oil with 
        an API gravity of 26 degrees or lower; and
            (3) the term ``Secretary'' means the Secretary of Energy.

SEC. 303. SALE AND REPLACEMENT OF OIL FROM THE STRATEGIC PETROLEUM 
              RESERVE.

    (a) Initial Petroleum Sale and Replacement.--Notwithstanding 
section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241), 
the Secretary shall publish a plan not later than 15 days after the 
date of enactment of this Act to--
            (1) sell, in the amounts and on the schedule described in 
        subsection (b), light grade petroleum from the Strategic 
        Petroleum Reserve and acquire an equivalent volume of heavy 
        grade petroleum;
            (2) deposit the cash proceeds from sales under paragraph 
        (1) into the SPR Petroleum Account established under section 
        167 of the Energy Policy and Conservation Act (42 U.S.C. 6247); 
        and
            (3) from the cash proceeds deposited pursuant to paragraph 
        (2), withdraw the amount necessary to pay for the direct 
        administrative and operational costs of the sale and 
        acquisition.
    (b) Amounts and Schedule.--The sale and acquisition described in 
subsection (a) shall require the offer for sale of a total quantity of 
70,000,000 barrels of light grade petroleum from the Strategic 
Petroleum Reserve. The sale shall commence, whether or not a plan has 
been published under subsection (a), not later than 30 days after the 
date of enactment of this Act and be completed no more than six months 
after the date of enactment of this Act, with at least 20,000,000 
barrels to be offered for sale within the first 60 days after the date 
of enactment of this Act. In no event shall the Secretary sell barrels 
of oil under subsection (a) that would result in a Strategic Petroleum 
Reserve that contains fewer than 90 percent of the total amount of 
barrels in the Strategic Petroleum Reserve as of the date of enactment 
of this Act. Heavy grade petroleum, to replace the quantities of light 
grade petroleum sold under this section, shall be obtained through 
acquisitions which--
            (1) shall commence no sooner than 6 months after the date 
        of enactment of this Act;
            (2) shall be completed, at the discretion of the Secretary, 
        not later than 5 years after the date of enactment of this Act;
            (3) shall be carried out in a manner so as to maximize the 
        monetary value to the Federal Government; and
            (4) shall be carried out using the receipts from the sales 
        of light grade petroleum authorized under this section.
    (c) Deferrals.--The Secretary is encouraged to, when economically 
beneficial and practical, grant requests to defer scheduled deliveries 
of petroleum to the Reserve under subsection (a) if the deferral will 
result in a premium paid in additional barrels of oil which will reduce 
the cost of oil acquisition and increase the volume of oil delivered to 
the Reserve or yield additional cash bonuses.
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