110 HR 6670 IH: Consumer Energy Supply Act of
U.S. House of Representatives
2008-07-30
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the
Long-Term Energy Assurance and
Security Enhancement Act of 2008
or the
LEASE Act of
2008
.
<enum>I</enum><header>Outer
Continental Shelf Oil and Gas Leasing</header>
<subtitle id="H2CCE0DAC2D7D45BA8435A53F95569175"><enum>A</enum><header>Offshore oil and
gas leasing in Gulf of Mexico</header>
<section id="HB278909720B54463B9D92CCDB1253D"><enum>101.</enum><header>Offshore oil and
gas leasing in certain areas of the Gulf of Mexico</header>
<subsection id="HB7E726DD0F9A4E3C9DCFBFC44C60FF59"><enum>(a)</enum><header>Opening of
certain areas in eastern Gulf of Mexico to oil and gas leasing</header>
<paragraph id="H57300107C32D4939A76855CE346B15F6"><enum>(1)</enum><header>In
general</header><text>Section 104(a) of the Gulf of Mexico Energy Security Act
of 2006 (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331</external-xref> note; <external-xref legal-doc="public-law" parsable-cite="pl/109/432">Public Law 109–432</external-xref>) is amended—</text>
<subparagraph id="HD9456F8E632F418780AD1837DF33D0F1"><enum>(A)</enum><text>by striking
paragraph (1);</text>
</subparagraph><subparagraph id="H046921B6684A4F80937E0017FF295F1C"><enum>(B)</enum><text>in paragraph (2),
by striking <quote>125 miles</quote> and inserting <quote>100 miles</quote>;
and</text>
</subparagraph><subparagraph id="HA5A4F9FF136346C1A0FD00F0752DD19E"><enum>(C)</enum><text>by redesignating
paragraphs (2) and (3) as paragraphs (1) and (2), respectively.</text>
</subparagraph></paragraph><paragraph id="HC4B93A64C8B54A6AB11ECCCA6D6D43E1"><enum>(2)</enum><header>Termination of
restriction on use of funds</header><text>Section 104 of division F of the
Consolidated Appropriations Act, 2008 (<external-xref legal-doc="public-law" parsable-cite="pl/110/161">Public Law 110–161</external-xref>; 121 Stat. 2118) is
amended—</text>
<subparagraph id="HB4E58E3F661844D2963502FB87F7AA"><enum>(A)</enum><text>by inserting
<quote>and</quote> after <quote>North Atlantic;</quote>; and</text>
</subparagraph><subparagraph id="H18C200543C124951B8306E6ED37857C9"><enum>(B)</enum><text>by striking
<quote>; and the eastern</quote> and all that follows and inserting a
period.</text>
</subparagraph></paragraph><paragraph id="H198C0781D9314E60B79674B4EC27E490"><enum>(3)</enum><header>Requirement to
conduct lease sales</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>) 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).</text>
</paragraph><paragraph id="H3D6AAFBA4B434C6BAC90C2F730D27DE2"><enum>(4)</enum><header>Omission from
leasing program</header><text display-inline="yes-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/43/1344">43 U.S.C. 1344</external-xref>).</text>
</paragraph></subsection><subsection id="H8F321BCD77F3459CA4BCF55189C2A1BA"><enum>(b)</enum><header>Limitations</header>
<paragraph id="H3AE551704DE04DF2A0E28D31E38B501D"><enum>(1)</enum><header>Compliance with
memorandum</header><text display-inline="yes-display-inline">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
<quote>Memorandum of Agreement between the Department of Defense and the
Department of the Interior on Mutual Concerns On The Outer Continental
Shelf</quote> 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.</text>
</paragraph><paragraph id="H1A51FD2947B64672BB00D97E439E2A9"><enum>(2)</enum><header>Military Mission
Line</header><text display-inline="yes-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/43/1341">43 U.S.C. 1341(d)</external-xref>).</text>
</paragraph></subsection></section><section display-inline="no-display-inline" id="HBA2BC7388A154DE9B3A319FAC65CDDE6" section-type="subsequent-section"><enum>102.</enum><header>Disposition of
qualified Outer Continental Shelf revenues</header>
<subsection id="H9A4D105CF3D6478BB5143332E42BA4A3"><enum>(a)</enum><header>In
general</header><text>Notwithstanding section 9 of the Outer Continental Shelf
Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1338">43 U.S.C. 1338</external-xref>) and subject to the other provisions of this section,
for each applicable fiscal year, the Secretary of the Treasury shall
deposit—</text>
<paragraph id="H2A7F54B72D7C42D2B46CE2054481FFEF"><enum>(1)</enum><text>25 percent of
qualified Outer Continental Shelf revenues in the general fund of the
Treasury;</text>
</paragraph><paragraph id="HB5ED0B91D66444D1A4C71700D4D0BAE"><enum>(2)</enum><text>25
percent of qualified Outer Continental Shelf revenues in the Energy
Independence and Security Fund established by section 131; and</text>
</paragraph><paragraph id="HF322EF636F144FE5A1ADA2717FC9F885"><enum>(3)</enum><text>50 percent of
qualified Outer Continental Shelf revenues in a special account in the
Treasury, from which the Secretary shall disburse—</text>
<subparagraph id="HC3FD2517A55B40D1AC7B6575B606D8CE"><enum>(A)</enum><text>75 percent to Gulf
producing States in accordance with subsection (b); and</text>
</subparagraph><subparagraph id="HEDD6EBCCE9AB4EE4AB9425B382BB78C"><enum>(B)</enum><text>25 percent to
provide financial assistance to States in accordance with section 6 of the Land
and Water Conservation Fund Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/16/460l-8">16 U.S.C. 460l–8</external-xref>), which shall be
considered income to the Land and Water Conservation Fund for purposes of
section 2 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/16/460l-5">16 U.S.C. 460l–5</external-xref>).</text>
</subparagraph></paragraph></subsection><subsection id="H0616B8CCAFE348E0963C63A4CEB469B8"><enum>(b)</enum><header>Allocation Among
Gulf Producing States and Coastal Political Subdivisions</header>
<paragraph id="H0E3EEB4A23DD404899008C1C6F5B0981"><enum>(1)</enum><header>Allocation among
Gulf producing States</header>
<subparagraph id="HAB20131E0BE14C57BA03A6FD921DF7A6"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="H8BFB7349281143C6004CDB04FF19A1B3"><enum>(B)</enum><header>Minimum
allocation</header><text>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).</text>
</subparagraph></paragraph><paragraph id="H80D1D31FB93C436AB8BABED3C287879"><enum>(2)</enum><header>Payments to
coastal political subdivisions</header>
<subparagraph id="H1D9BB60CF4214768A633BBD0C9C34677"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="H344B75B044104846B7776DDE814227D2"><enum>(B)</enum><header>Allocation</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/43/1356a">43 U.S.C. 1356a(b)(4)</external-xref>).</text>
</subparagraph></paragraph></subsection><subsection id="HF5AE82C12CD04E909297A9B5585707AD"><enum>(c)</enum><header>Timing</header><text>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.</text>
</subsection><subsection id="HB565C672C32745C7BC6D8B813FDDD53B"><enum>(d)</enum><header>Authorized
Uses</header>
<paragraph id="HA46140BB6E5C495AA1122FFABBF45620"><enum>(1)</enum><header>In
general</header><text>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:</text>
<subparagraph id="H4A4EBF72A112470883D4F2EAEE7B581F"><enum>(A)</enum><text>Projects and
activities for the purposes of coastal protection, including conservation,
coastal restoration, hurricane protection, and infrastructure directly affected
by coastal wetland losses.</text>
</subparagraph><subparagraph id="HFB14F088577F430680F169F02F060057"><enum>(B)</enum><text>Mitigation of
damage to fish, wildlife, or natural resources.</text>
</subparagraph><subparagraph id="H37A7B2E4FF974747AB4379F1369CDB43"><enum>(C)</enum><text>Implementation of
a federally approved marine, coastal, or comprehensive conservation management
plan.</text>
</subparagraph><subparagraph id="HF5E2137787DD44A5A56C77B9A93E5030"><enum>(D)</enum><text>Mitigation of the
impact of Outer Continental Shelf activities through the funding of onshore
infrastructure projects.</text>
</subparagraph><subparagraph id="H57A1051C9DA844F3A11BC822746BF37C"><enum>(E)</enum><text>Planning
assistance and the administrative costs of complying with this section.</text>
</subparagraph></paragraph><paragraph id="H19AA5F7902944A7BA8D1005ED7707D60"><enum>(2)</enum><header>Limitation</header><text>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).</text>
</paragraph></subsection><subsection commented="no" id="H0DECAD75399C41BEAA7D855E941CC6C2"><enum>(e)</enum><header>Administration</header><text>Amounts
made available under subsection (a)(2) shall—</text>
<paragraph commented="no" id="H69BF7A0605064682A9AAD3A6C6ED3BAC"><enum>(1)</enum><text>be made available,
without further appropriation, in accordance with this section;</text>
</paragraph><paragraph commented="no" id="HC67B2E5F8AF74DED83E5B9A21EE3B068"><enum>(2)</enum><text>remain available
until expended; and</text>
</paragraph><paragraph commented="no" id="HE4A06DDFA1944D3489B4196399923800"><enum>(3)</enum><text>be in addition to
any amounts appropriated under—</text>
<subparagraph commented="no" id="H71FAA47B7725422783269B383D47685E"><enum>(A)</enum><text>the Outer
Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>);</text>
</subparagraph><subparagraph commented="no" id="HD66EF47CBC374D67877B65DE3EA2400"><enum>(B)</enum><text>the Land and Water
Conservation Fund Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/16/460l-4">16 U.S.C. 460l–4 et seq.</external-xref>); or</text>
</subparagraph><subparagraph commented="no" id="H48E39E77002044D7AD96A8B31892900"><enum>(C)</enum><text>any other provision
of law.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="H8C0AD90EDDAD46A2B98FE2A929005570"><enum>(f)</enum><header>Limitations on
Amount of Distributed Qualified Outer Continental Shelf Revenues</header>
<paragraph commented="no" id="HD45AADBCECA44EC8AE7DA4F614F71A6"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph commented="no" id="HEBDBED9359074D619059E98369BEB9BD"><enum>(2)</enum><header>Pro rata
reductions</header><text>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)—</text>
<subparagraph commented="no" id="HBC3F44389DCB467C96B444DB61DC8FF4"><enum>(A)</enum><text>the Secretary
shall reduce the amount of qualified Outer Continental Shelf revenue provided
to each recipient on a pro rata basis; and</text>
</subparagraph><subparagraph commented="no" id="H247F0938B22A4E6596F1D15F9C007F93"><enum>(B)</enum><text>any remainder of
the qualified Outer Continental Shelf revenues shall revert to the general fund
of the Treasury.</text>
</subparagraph></paragraph></subsection></section><section display-inline="no-display-inline" id="H39348C084302476684D8FDF35DF993D" section-type="subsequent-section"><enum>103.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text>
<paragraph id="HEBCAF0571E0E4758B841B97607DFA76E"><enum>(1)</enum><header>Coastal
political subdivision</header><text>The term <quote>coastal political
subdivision</quote> means a political subdivision of a Gulf producing State any
part of which political subdivision is—</text>
<subparagraph id="HDB6F937FB0C74DA1B1680040F6B2CDA9"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="H4D05979726DE48888FD1B071F266BA0"><enum>(B)</enum><text>not more than 200
nautical miles from the geographic center of any leased tract.</text>
</subparagraph></paragraph><paragraph id="HBF80156604DF4C9EAEFC6D1691052BCD"><enum>(2)</enum><header>Gulf producing
State</header><text>The term <quote>Gulf producing State</quote> means each of
the States of Alabama, Florida, Louisiana, Mississippi, and Texas.</text>
</paragraph><paragraph id="HED769A471A5C4F0CAAFFC9BA5E807E9C"><enum>(3)</enum><header>Military mission
line</header><text>The term <quote>Military Mission Line</quote> means the
north-south line at 86°41′31′′ W. longitude.</text>
</paragraph><paragraph id="H296B58C930AB4BEC8DB100319EE76656"><enum>(4)</enum><header>Outer
Continental Shelf</header><text>The term <quote>Outer Continental Shelf</quote>
has the meaning given the term <quote>outer Continental Shelf</quote> under
section 2 of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331</external-xref>).</text>
</paragraph><paragraph id="H55638C1A2EF3480AB57097C098ABAA00"><enum>(5)</enum><header>Qualified Outer
Continental Shelf revenues</header>
<subparagraph id="H173025B415CC4FB0B3A584D782B9CBEA"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<quote>qualified Outer Continental Shelf revenues</quote> 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.</text>
</subparagraph><subparagraph id="H695032487FA745468BB9ED8DA0FEFFF5"><enum>(B)</enum><header>Exclusions</header><text>The
term <quote>qualified Outer Continental Shelf revenues</quote> does not
include—</text>
<clause id="H6CA83EADDD384E978B9651C932D8A69D"><enum>(i)</enum><text>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</text>
</clause><clause id="H0C51EC09F5C84CFCB4AE376F12A7D778"><enum>(ii)</enum><text>revenues
generated from leases subject to section 8(g) of the Outer Continental Shelf
Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(g)</external-xref>).</text>
</clause></subparagraph></paragraph><paragraph id="H4F449FBBEC8343E700DE82CCA9F137FC"><enum>(6)</enum><header>Secretary</header><text>The
term <quote>Secretary</quote> means the Secretary of the Interior.</text>
</paragraph></section><section id="HF7811C8DF1E74B199C432B096F105D31"><enum>104.</enum><header>Protection of
the environment and conservation of the natural resources of the Outer
Continental Shelf</header><text display-inline="no-display-inline">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.</text>
</section></subtitle><subtitle id="HA94666A2502441D0897E00A9A957FB00"><enum>B</enum><header>Offshore oil and
gas leasing outside Gulf of Mexico</header>
<section id="H889C9A4FE90A4B14909E8EB38915229E"><enum>121.</enum><header>Establishment
of projected seaward lateral State boundary lines on the OCS</header><text display-inline="no-display-inline">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.</text>
</section><section display-inline="no-display-inline" id="HF71DF6F53A6A48979D475EACB9C21D05"><enum>122.</enum><header>Assessments of
Oil and Gas Resources of the OCS</header>
<subsection id="HC1356941304F48CA8CFD8D52356C147F"><enum>(a)</enum><header>In
general</header><text>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—</text>
<paragraph id="HBF79F9855DAF4C0900A1BABC98002925"><enum>(1)</enum><text>outside the Gulf
of Mexico;</text>
</paragraph><paragraph id="H8A60C08F9C7E463BBF6F6EBC07078FF5"><enum>(2)</enum><text>within the seaward
lateral boundaries of the State; and</text>
</paragraph><paragraph id="H96A9A46F8D5D4BCE8E6F884F11EC071F"><enum>(3)</enum><text>between 25 miles
and 100 miles from the coastline of the State.</text>
</paragraph></subsection><subsection id="HE810945FC8EB43858F0040F33E707D00"><enum>(b)</enum><header>Assessment
options</header><text>A State may request that the assessment be based
on—</text>
<paragraph id="HDFA51DCA823D4153823E003ED8F0158E"><enum>(1)</enum><text>new data using the
best available technology, including seismic technology but not including
drilling; or</text>
</paragraph><paragraph id="HBF2D282F051A4CAE935177D609B78B4C"><enum>(2)</enum><text>the best available
data that exists on the date the request is approved.</text>
</paragraph></subsection><subsection id="H60B8F407508D4050BB3DD000EF06EF55"><enum>(c)</enum><header>Action by
secretary</header><text>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—</text>
<paragraph id="HE3F8B2E96EA141B0903F6F9B1ED821F6"><enum>(1)</enum><text>if the request is
made pursuant to subsection (b)(1)—</text>
<subparagraph id="HDF690D8349FB4A08B904BB66DE30D6C2"><enum>(A)</enum><text>approve the
request; or</text>
</subparagraph><subparagraph id="H31AFD91BFE944C2DB57055810000FD8C"><enum>(B)</enum><text>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</text>
</subparagraph></paragraph><paragraph id="H94FC1B7085CA4AD6844D024CE488E5FA"><enum>(2)</enum><text>approve the
request if the request is made pursuant to subsection (b)(2).</text>
</paragraph></subsection><subsection id="HB2AC7A656F19450F854DAED600B19FB9"><enum>(d)</enum><header>Completion of
assessment</header><text>The Secretary shall—</text>
<paragraph id="HCFB570074F92469095A9A1A1568000F0"><enum>(1)</enum><text>in the case of an
assessment requested pursuant to subsection (b)(1)—</text>
<subparagraph id="HFCA55ADFDA35479788471953A5DB36BA"><enum>(A)</enum><text>complete the
resource assessment within 5 years after the date on which the request is
approved; and</text>
</subparagraph><subparagraph id="H9DD08EF00FD14759006E215E17BB4E4F"><enum>(B)</enum><text>submit annual
progress reports on the assessment to the State and to the Congress; and</text>
</subparagraph></paragraph><paragraph id="H236F7948461C437AA46176AC061877E7"><enum>(2)</enum><text>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.</text>
</paragraph></subsection></section><section id="H7212E2D703EA4D5EA427DE6D106E2DF6"><enum>123.</enum><header>Termination of
moratoria and withdrawal</header>
<subsection id="H3A65AE27B36E48A4AB8738F4EDC26733"><enum>(a)</enum><header>Termination of
moratoria and withdrawals</header><text>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—</text>
<paragraph id="HBD556F79A263446986B3B2153B2F0087"><enum>(1)</enum><text>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</text>
</paragraph><paragraph id="H9DC491C01AE1429E88CA44B9A927F7BC"><enum>(2)</enum><text>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.</text>
</paragraph></subsection><subsection id="H0F26DFD35B5C4C19817C32FBC575C8BE"><enum>(b)</enum><header>Option To
request leasing</header>
<paragraph id="HEF7F0E85B4FA4546BD24DFD6094B1619"><enum>(1)</enum><header>In
General</header><text display-inline="yes-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>) that is located—</text>
<subparagraph id="H7B9F3F2673B547B196601396EF72C43"><enum>(A)</enum><text>outside the Gulf of
Mexico;</text>
</subparagraph><subparagraph id="HDC4BB25174684AAFA9AF8FD59FBCEA9C"><enum>(B)</enum><text>within the seaward
lateral boundaries of the State; and</text>
</subparagraph><subparagraph id="H2029EF9914264F86A2EEFCB774D7D6A3"><enum>(C)</enum><text>between 25 miles
and 100 miles from the coastline.</text>
</subparagraph></paragraph><paragraph id="HC6A2DEA1B31E4834AE07B3353DE655F4"><enum>(2)</enum><header>Action by
Secretary</header><text display-inline="yes-display-inline">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—</text>
<subparagraph id="HB707C8839C224E59937F2824123983A7"><enum>(A)</enum><text>approve the
request; or</text>
</subparagraph><subparagraph id="HE270B1FB8FCF403B8DE5F913BA32F4C2"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="H3DAB2659B6714E3E91D4E92700DE7CE7"><enum>(3)</enum><header>Failure to
act</header><text>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.</text>
</paragraph></subsection><subsection id="H897E13BA5D50439F995772535D30E99F"><enum>(c)</enum><header>Initiation of
leasing</header><text>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.</text>
</subsection><subsection id="HD33ED27FDDBC4C1486C760FAFA5D2BBB"><enum>(d)</enum><header>Omission from
leasing program</header><text display-inline="yes-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/43/1344">43 U.S.C. 1344</external-xref>)</text>
</subsection></section><section display-inline="no-display-inline" id="H598621B496BF4A4888EA6B10EC34D26E" section-type="subsequent-section"><enum>124.</enum><header>Disposition of
qualified Outer Continental Shelf revenues</header>
<subsection id="HF3F427A7251E43A0B2937444FA67F9BD"><enum>(a)</enum><header>In
general</header><text>Notwithstanding section 9 of the Outer Continental Shelf
Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1338">43 U.S.C. 1338</external-xref>) and subject to the other provisions of this section,
for each applicable fiscal year, the Secretary of the Treasury shall
deposit—</text>
<paragraph id="H491A82FFFD744C5D89E4192886B3A126"><enum>(1)</enum><text>25 percent of
qualified Outer Continental Shelf revenues in the general fund of the
Treasury;</text>
</paragraph><paragraph id="H605B5A7271BC40BDA1A6D25742B4B915"><enum>(2)</enum><text>25 percent of
qualified Outer Continental Shelf revenues in the Energy Independence and
Security Fund established by section 131; and</text>
</paragraph><paragraph id="H597FD291CF1E47BC91685865C08718A5"><enum>(3)</enum><text>50 percent of
qualified Outer Continental Shelf revenues in a special account in the Treasury
from which the Secretary shall disburse—</text>
<subparagraph id="HBBC756FCD0FC434CA65409316EA7CC1E"><enum>(A)</enum><text>75 percent to
States in accordance with subsection (b); and</text>
</subparagraph><subparagraph id="H6604A09E49A24B25A048E58C6FDF5D99"><enum>(B)</enum><text>25 percent to
provide financial assistance to States in accordance with section 6 of the Land
and Water Conservation Fund Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/16/460l-8">16 U.S.C. 460l–8</external-xref>), which shall be
considered income to the Land and Water Conservation Fund for purposes of
section 2 of that Act (<external-xref legal-doc="usc" parsable-cite="usc/16/460l-5">16 U.S.C. 460l–5</external-xref>).</text>
</subparagraph></paragraph></subsection><subsection id="H70AF85A3C3CB497FA9ACEBE3A0D7DE5E"><enum>(b)</enum><header>Allocation Among
States and Coastal Political Subdivisions</header>
<paragraph id="HC2A2AA1C63F64CA5A86E37BD5C961EA"><enum>(1)</enum><header>Allocation among
producing States</header>
<subparagraph id="HA269A47F92174C10AFD86770E58EF5F2"><enum>(A)</enum><header>Revenues
attributable to lease tracts located within 100 miles of the
coastline</header><text>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.</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="HC5E01B80BDC945128593A08147649943"><enum>(B)</enum><header>Revenues
attributable to lease tracts located more than 100 miles from the
coastline</header><text display-inline="yes-display-inline">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.</text>
</subparagraph><subparagraph id="HE56C8D08160F47D6BB7D455F18D025D2"><enum>(C)</enum><header>Minimum
allocation</header><text>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.</text>
</subparagraph></paragraph><paragraph id="H1FC5D3CAA7BA46208508B0B7FDBC7BA2"><enum>(2)</enum><header>Payments to
coastal political subdivisions</header>
<subparagraph id="HA6490127115A44519FEB1F3DA97093CE"><enum>(A)</enum><header>In
general</header><text>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.</text>
</subparagraph><subparagraph id="H248BF99B6A87411D9600D8F5A9E15CF2"><enum>(B)</enum><header>Allocation</header><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/43/1356a">43 U.S.C. 1356a(b)(4)</external-xref>).</text>
</subparagraph></paragraph></subsection><subsection id="HE987135160544A8DB1B09F1DF06BEFF"><enum>(c)</enum><header>Timing</header><text>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.</text>
</subsection><subsection id="H0373D4223B934E36AF07E2EE35B8F879"><enum>(d)</enum><header>Authorized
Uses</header>
<paragraph id="H928EDB043A014410911600ABEC1752F3"><enum>(1)</enum><header>In
general</header><text>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:</text>
<subparagraph id="H20405AB5394E4FB1A3F37EC05BD863EC"><enum>(A)</enum><text>Projects and
activities for the purposes of coastal protection, including conservation,
coastal restoration, hurricane protection, and infrastructure directly affected
by coastal wetland losses.</text>
</subparagraph><subparagraph id="H8E90EF37DFA840469906A06DDAB593B3"><enum>(B)</enum><text>Mitigation of
damage to fish, wildlife, or natural resources.</text>
</subparagraph><subparagraph id="H829991B64DB646C3ACDFDDB40066F338"><enum>(C)</enum><text>Implementation of
a federally approved marine, coastal, or comprehensive conservation management
plan.</text>
</subparagraph><subparagraph id="HD01DACE6F43A41829DF66F9FC3AC87AB"><enum>(D)</enum><text>Mitigation of the
impact of Outer Continental Shelf activities through the funding of onshore
infrastructure projects.</text>
</subparagraph><subparagraph id="H34ED3820C90F456F8873A2DAFE8759D"><enum>(E)</enum><text>Planning assistance
and the administrative costs of complying with this section.</text>
</subparagraph></paragraph><paragraph id="HC3120C0D5F2C48879B93B93B749970AC"><enum>(2)</enum><header>Limitation</header><text>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).</text>
</paragraph></subsection><subsection commented="no" id="HE8B98C6CABD14D729E07A752447EA39E"><enum>(e)</enum><header>Administration</header><text>Amounts
made available under subsection (a)(2) shall—</text>
<paragraph commented="no" id="HD8D12115BCB44BC5A2C807DFE7CA2EF"><enum>(1)</enum><text>be made available,
without further appropriation, in accordance with this section;</text>
</paragraph><paragraph commented="no" id="HB0CC8D4581674A83BF16DF82F8499F15"><enum>(2)</enum><text>remain available
until expended; and</text>
</paragraph><paragraph commented="no" id="H95675564C70F47BE82E0B47551D12B2"><enum>(3)</enum><text>be in addition to
any amounts appropriated under—</text>
<subparagraph commented="no" id="H78366E849C284F45BCAF75920048A76D"><enum>(A)</enum><text>the Outer
Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331 et seq.</external-xref>);</text>
</subparagraph><subparagraph commented="no" id="H34B580A525C6409F9411624E1519A83E"><enum>(B)</enum><text>the Land and Water
Conservation Fund Act of 1965 (<external-xref legal-doc="usc" parsable-cite="usc/16/460l-4">16 U.S.C. 460l–4 et seq.</external-xref>); or</text>
</subparagraph><subparagraph commented="no" id="HA7F13B0D4B3A4D31B656C68253D48884"><enum>(C)</enum><text>any other
provision of law.</text>
</subparagraph></paragraph></subsection></section><section display-inline="no-display-inline" id="H9CF4D873397F43EBA7C7C02271AA10DA" section-type="subsequent-section"><enum>125.</enum><header>Protection of the
environment and conservation of the natural resources of the Outer Continental
Shelf</header><text display-inline="no-display-inline">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.</text>
</section><section display-inline="no-display-inline" id="HD3C41975B2904FFE948E049B8FFD53A9" section-type="subsequent-section"><enum>126.</enum><header>Definitions</header><text display-inline="no-display-inline">In this subtitle:</text>
<paragraph id="H24419873700B458BB2F9BCF5E3F00F7"><enum>(1)</enum><header>Coastal political
subdivision</header><text>The term <quote>coastal political subdivision</quote>
means a political subdivision of a State any part of which political
subdivision is—</text>
<subparagraph id="H51E63ED361D940C99E2161FBB0BFA468"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="HF81C0A01157F4FABA3CAE9DBA0899C1"><enum>(B)</enum><text>not more than 200
nautical miles from the geographic center of any leased tract.</text>
</subparagraph></paragraph><paragraph id="H0783180F71D84C5483245C741950DF1E"><enum>(2)</enum><header>Outer
Continental Shelf</header><text>The term <quote>Outer Continental Shelf</quote>
has the meaning the term <quote>outer Continental Shelf</quote> under section 2
of the Outer Continental Shelf Lands Act (<external-xref legal-doc="usc" parsable-cite="usc/43/1331">43 U.S.C. 1331</external-xref>).</text>
</paragraph><paragraph display-inline="no-display-inline" id="H97DDF61AD6DD418187A199A8BDDA4E66"><enum>(3)</enum><header>Producing
State</header><text display-inline="yes-display-inline">The term
<quote>producing State</quote>—</text>
<subparagraph id="HB876640C1ABF4452ABFEEBD484955854"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="HA4DD8A5A446A4B999322634ED68EC6CE"><enum>(B)</enum><text>does not include
the States of Alabama, Louisiana, Mississippi, and Texas.</text>
</subparagraph></paragraph><paragraph id="H047B4552F3874CF5B0003D7672EE3FD3"><enum>(4)</enum><header>Qualified Outer
Continental Shelf revenues</header>
<subparagraph id="H223F30BF70784CEC939278F83719D2D7"><enum>(A)</enum><header>In
general</header><text>Except as provided in subparagraph (B), the term
<quote>qualified Outer Continental Shelf revenues</quote> 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.</text>
</subparagraph><subparagraph id="H906B42F4B68F4D1897693B84B3485BCB"><enum>(B)</enum><header>Exclusions</header><text>The
term <quote>qualified Outer Continental Shelf revenues</quote> does not
include—</text>
<clause id="HA8A6954CFCF749D79278213519C31702"><enum>(i)</enum><text>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</text>
</clause><clause id="H9012AE8CDE6944C8BE8BE509F05CD9D"><enum>(ii)</enum><text>revenues generated
from leases subject to section 8(g) of the Outer Continental Shelf Lands Act
(<external-xref legal-doc="usc" parsable-cite="usc/43/1337">43 U.S.C. 1337(g)</external-xref>).</text>
</clause></subparagraph></paragraph><paragraph id="H05E5EB0E843E44E1B2719701331CAB00"><enum>(5)</enum><header>Secretary</header><text>The
term <quote>Secretary</quote> means the Secretary of the Interior.</text>
</paragraph></section></subtitle><subtitle id="H54B676BD573441A78B0096C1862B2BCD"><enum>C</enum><header>Energy
Independence and Security Fund</header>
<section id="H38599579E9BC4166AF2D002C009E2D22"><enum>131.</enum><header>Energy
Independence and Security Fund</header>
<subsection id="H9157C761CAF54BA1A807D998D4B12879"><enum>(a)</enum><header>Establishment</header><text>There
is established in the Treasury a separate account which shall be known as the
Energy Independence and Security Fund.</text>
</subsection><subsection id="H0722CF3E04AD429300CC97B600D08CA6"><enum>(b)</enum><header>Contents</header><text>The
account shall consist of such amounts as are deposited into it under this
title.</text>
</subsection><subsection display-inline="no-display-inline" id="HFE731D09A0AE4C5AAF66DFA5578880EB"><enum>(c)</enum><header>Distribution of
Funds</header><text>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:</text>
<paragraph id="HEFE98C7C04454F7400BB932E9728F2B5"><enum>(1)</enum><header>Assessment of
oil and gas resources</header><text display-inline="yes-display-inline">An
amount to the Secretary of the Interior for assessments of oil and gas
resources under section 122.</text>
</paragraph><paragraph id="H7F25EBDC90AC4BE780D323EEC173AFDB"><enum>(2)</enum><header>Wind energy
research and development</header><text display-inline="yes-display-inline">An
amount to the account <quote>Energy Efficiency and Renewable Energy</quote>, 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)).</text>
</paragraph><paragraph id="H623CA4F8A7384556B69D10F94EE85B00"><enum>(3)</enum><header>Solar energy
research and development</header><text display-inline="yes-display-inline">An
amount to the account <quote>Energy Efficiency and Renewable Energy</quote>, 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 (<external-xref legal-doc="usc" parsable-cite="usc/42/16231">42 U.S.C. 16231(a)(2)(A)</external-xref>).</text>
</paragraph><paragraph id="H8EA09DDC7BBF459FA06264441CE7A2B6"><enum>(4)</enum><header>Low income
weatherization</header><text display-inline="yes-display-inline">An amount to
the account <quote>Weatherization Assistance Program</quote>, 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 (<external-xref legal-doc="public-law" parsable-cite="pl/110/140">Public Law 110–140</external-xref>).</text>
</paragraph><paragraph id="H7C9B5828648044AB8E53AE18F4103C3"><enum>(5)</enum><header>Marine and
hydrokinetic renewable electric energy</header><text display-inline="yes-display-inline">An amount to the account <quote>Energy
Efficiency and Renewable Energy</quote>, 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
(<external-xref legal-doc="usc" parsable-cite="usc/42/16231">42 U.S.C. 16231</external-xref>) and section 636 of the Energy Independence and Security Act
of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17215">42 U.S.C. 17215</external-xref>).</text>
</paragraph><paragraph commented="no" id="H080C52F6AF14449ABE8E107430439B45"><enum>(6)</enum><header>Advanced
research projects agency—Energy</header><text display-inline="yes-display-inline">An amount to the account <quote>Energy
Transformation Acceleration Fund</quote>, established under section 5012(m) of
the America COMPETES Act (<external-xref legal-doc="usc" parsable-cite="usc/42/16538">42 U.S.C. 16538(m)</external-xref>, to remain available until
expended.</text>
</paragraph><paragraph commented="no" id="H5FE8141E37E34F888886870251F91B5D"><enum>(7)</enum><header>Advanced
vehicles research, development, and demonstration</header><text display-inline="yes-display-inline">An amount to the account <quote>Energy
Efficiency and Renewable Energy</quote>, 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 (<external-xref legal-doc="usc" parsable-cite="usc/42/16191">42 U.S.C. 16191(a)(2)(A)</external-xref>).</text>
</paragraph><paragraph id="HD4995C67A38E4BA68500035E4E561EB5"><enum>(8)</enum><header>Geothermal
energy development</header><text display-inline="yes-display-inline">An amount
to the account <quote>Energy Efficiency and Renewable Energy</quote>, 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 (<external-xref legal-doc="usc" parsable-cite="usc/42/17192-95">42 U.S.C. 17192–95</external-xref>) and section
931(a)(2)(C) of the Energy Policy Act of 2005 (42 U.S.C.
16231(a)(2)(C)).</text>
</paragraph><paragraph id="H30A5C01D74F2436CAFEF65DCE9BCE00"><enum>(9)</enum><header>Carbon capture
and storage</header><text display-inline="yes-display-inline">An amount to the
account <quote>Fossil Energy Research and Development</quote>, 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 (<external-xref legal-doc="usc" parsable-cite="usc/42/16293">42 U.S.C. 16293</external-xref>) and sections 703 and 707 of
the Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17251">42 U.S.C. 17251</external-xref>,
17255).</text>
</paragraph><paragraph id="H28206CBA59764C48A9B2AB2643378C48"><enum>(10)</enum><header>Nonconventional
domestic natural gas production and environmental research</header>
<subparagraph id="H48287101913742E4855677111156C26F"><enum>(A)</enum><text display-inline="yes-display-inline">An amount to the account authorized by
section 999H(e) of the Energy Policy Act of 2005 (<external-xref legal-doc="usc" parsable-cite="usc/42/16378">42 U.S.C. 16378(e)</external-xref>), to
remain available until expended.</text>
</subparagraph><subparagraph id="H9AD107570928421D825D15495EAEB1BD"><enum>(B)</enum><text display-inline="yes-display-inline">An amount to the account <quote>Fossil
Energy Research and Development</quote>, 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.</text>
</subparagraph></paragraph><paragraph id="H50CCF011D54C49BDB491E3827C3566D"><enum>(11)</enum><header>Hydrogen
research and development</header><text display-inline="yes-display-inline">An
amount to the account <quote>Energy Efficiency and Renewable Energy</quote>, 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 (<external-xref legal-doc="usc" parsable-cite="usc/42/16396">42 U.S.C. 16396(f)</external-xref>).</text>
</paragraph><paragraph id="H567094CCCC084EA9AE4FF6F1D3F787A4"><enum>(12)</enum><header>Energy storage
for transportation and electric power</header>
<subparagraph id="H1697E5694B98401F934DD667EAE8135C"><enum>(A)</enum><text display-inline="yes-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/42/17231">42 U.S.C. 17231(p)(1)</external-xref>).</text>
</subparagraph><subparagraph id="HBCAD7A088E0C4EF8A68CA7E7E13777E5"><enum>(B)</enum><text display-inline="yes-display-inline">An amount to the account “Energy Efficiency
and Renewable Energy”, to remain available until expended, including—</text>
<clause id="H07661BA951A049F183E6ADC3A7A9AD2F"><enum>(i)</enum><text>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 (<external-xref legal-doc="usc" parsable-cite="usc/42/17231">42 U.S.C. 17231(p)(2)</external-xref>);</text>
</clause><clause id="HE96F8D2157BC4957BECBB5EF97D84347"><enum>(ii)</enum><text>for
energy storage systems demonstrations as authorized by section 641(p)(4) of the
Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17231">42 U.S.C. 17231(p)(4)</external-xref>);
and</text>
</clause><clause id="HD823E35D59DA4C7B9144323161065C54"><enum>(iii)</enum><text>for vehicle
energy storage systems demonstrations as authorized by section 641(p)(5) of the
Energy Independence and Security Act of 2007 (<external-xref legal-doc="usc" parsable-cite="usc/42/17231">42 U.S.C. 17231(p)(5)</external-xref>).</text>
</clause></subparagraph></paragraph><paragraph id="H74E9236668154953B929E0FEE7838B28"><enum>(13)</enum><header>Low Income Home
Energy Assistance Programs</header><text display-inline="yes-display-inline">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 (<external-xref legal-doc="usc" parsable-cite="usc/42/8623">42 U.S.C. 8623(a)</external-xref>–(d)).</text>
</paragraph><paragraph id="H3A1B5714C2F947E19869FC2000CABA34"><enum>(14)</enum><header>Industrial
energy efficiency research and development</header><text>An amount to the
account <quote>Energy Efficiency and Renewable Energy</quote>, 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 (<external-xref legal-doc="usc" parsable-cite="usc/42/16191">42 U.S.C. 16191(a)(2)(C)</external-xref>) and in section 452 of the Energy
Independence and Security Act of 2007 (<external-xref legal-doc="public-law" parsable-cite="pl/110/40">Public Law 110–40</external-xref>).</text>
</paragraph><paragraph id="H6B732F7612204C28AEB66F5129EB9910"><enum>(15)</enum><header>Building energy
efficiency research and development</header><text>An amount to the account
<quote>Energy Efficiency and Renewable Energy</quote>, 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 (<external-xref legal-doc="public-law" parsable-cite="pl/110/140">Public Law 110–140</external-xref>).</text>
</paragraph><paragraph id="H68E06BC5E49B461E9F07C6E4429FE71C"><enum>(16)</enum><header>Public
transportation urbanized area formula grants</header><text display-inline="yes-display-inline">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.</text>
</paragraph><paragraph id="H829C262D214C46EFAD7F2C5CE344538E"><enum>(17)</enum><header>Public
transportation formula grants for other than urbanized areas</header><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection></section></subtitle><enum>II</enum><header>Curbing
speculation in energy markets</header>
<section id="HE2FB057EC9384B79B84F593D10E1FEA0" section-type="subsequent-section"><enum>201.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Energy Markets Emergency Act of
2008</short-title></quote>.</text>
</section><section id="H20382BD73C3C4C5B0008CA80E1A782D3"><enum>202.</enum><header>Energy
markets</header>
<subsection id="H49F1A37886594D39B3E90421C3077704"><enum>(a)</enum><header>Findings</header><text display-inline="yes-display-inline">The Congress finds as follows:</text>
<paragraph id="H6197086CCC6C405E8E9EF34F7700ACD2"><enum>(1)</enum><text>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.</text>
</paragraph><paragraph id="H5DEDCF9D5B1C44AFBB6692209F3E9C89"><enum>(2)</enum><text>Congress has given
the Commodity Futures Trading Commission authority under the Commodity Exchange
Act to take necessary actions to address market emergencies.</text>
</paragraph><paragraph id="H3EDAF918C11043DA8D2E1E8F40F97474"><enum>(3)</enum><text>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.</text>
</paragraph><paragraph id="H7D81F95CAF9342ACA642E9D15FF6558"><enum>(4)</enum><text>Congress has
declared, in section 4a of the Commodity Exchange Act, that excessive
speculation imposes an undue and unnecessary burden on interstate
commerce.</text>
</paragraph><paragraph id="HC163853396714671A479A7ECFE41A1C4"><enum>(5)</enum><text>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.</text>
</paragraph><paragraph id="HBEA8DC2E300B433AA0963200C4FCCB6"><enum>(6)</enum><text>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.</text>
</paragraph><paragraph id="H0254D5908AFA40D1AE3961EDF19153E4"><enum>(7)</enum><text>Heating oil
futures contracts have risen in price from $2.97 to $3.81 during the March
through May contract months.</text>
</paragraph><paragraph id="H67A318E7FC2E46AA8C0030A856C78233"><enum>(8)</enum><text>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.</text>
</paragraph><paragraph id="HBDF0A9171B5646FEAA002800141CC86B"><enum>(9)</enum><text>According to the
American Automobile Association—</text>
<subparagraph id="H348491D52BE14B66BD7FF937675E871E"><enum>(A)</enum><text>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</text>
</subparagraph><subparagraph id="H05AF98CADD654819BCAF006B6256C16E"><enum>(B)</enum><text>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.</text>
</subparagraph></paragraph><paragraph id="HF7B80EE5378B46FB00DC8CDAAE7483B"><enum>(10)</enum><text>During this
decade, energy demand has been steadily on the rise in nations such as China
and other Asian exporting nations.</text>
</paragraph><paragraph id="H0A83906979864537BC7BC477788EFBAF"><enum>(11)</enum><text display-inline="yes-display-inline">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 <quote>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.</quote>.</text>
</paragraph></subsection><subsection id="H93A635A8844243A58EE9AF3DFDE82368"><enum>(b)</enum><header>Direction from
Congress</header><text display-inline="yes-display-inline">The Commodity
Futures Trading Commission shall utilize all its authority, including its
emergency powers, to—</text>
<paragraph id="H2AC7D19BA6B5479CB253BCA463610A7"><enum>(1)</enum><text display-inline="yes-display-inline">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</text>
</paragraph><paragraph id="H24F596C19698487D8B896B342356E94F"><enum>(2)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection></section><enum>III</enum><header>Sales from
Strategic Petroleum Reserve</header>
<section id="HF68D95DF59C94A6FAC83F653BD748652" section-type="subsequent-section"><enum>301.</enum><header>Short
title</header><text display-inline="no-display-inline">This title may be cited
as the <quote><short-title>Consumer Energy Supply Act of
2008</short-title></quote>.</text>
</section><section display-inline="no-display-inline" id="HFDD70059169F41368B7DB535F9B68EA0" section-type="subsequent-section"><enum>302.</enum><header>Definitions</header><text display-inline="no-display-inline">In this title—</text>
<paragraph id="H3451136C41B4433BB2C3133ED3D3886"><enum>(1)</enum><text display-inline="yes-display-inline">the term <term>light grade petroleum</term>
means crude oil with an API gravity of 30 degrees or higher;</text>
</paragraph><paragraph id="H3DFC5ADC812C43B5B4ABDE9C37668BCF"><enum>(2)</enum><text display-inline="yes-display-inline">the term <term>heavy grade petroleum</term>
means crude oil with an API gravity of 26 degrees or lower; and</text>
</paragraph><paragraph id="H5AA2894DBA5D43C68B21DD7BE1270137"><enum>(3)</enum><text>the term
<quote>Secretary</quote> means the Secretary of Energy.</text>
</paragraph></section><section id="H96B49B3ECA7345D985CBF937C319D5D"><enum>303.</enum><header>Sale and
replacement of oil from the Strategic Petroleum Reserve</header>
<subsection id="HC5102BBFFE824534B000258E5B38B1CB"><enum>(a)</enum><header>Initial
petroleum sale and replacement</header><text display-inline="yes-display-inline">Notwithstanding section 161 of the Energy
Policy and Conservation Act (<external-xref legal-doc="usc" parsable-cite="usc/42/6241">42 U.S.C. 6241</external-xref>), the Secretary shall publish a
plan not later than 15 days after the date of enactment of this Act to—</text>
<paragraph id="HC114657E39014F7DA6A4D325C99E1C1"><enum>(1)</enum><text display-inline="yes-display-inline">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;</text>
</paragraph><paragraph id="HCC820E0B55C8415F90A4762D9C6C1FA7"><enum>(2)</enum><text>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</text>
</paragraph><paragraph id="H558C86C38C6844C2B900ACCA76A2E184"><enum>(3)</enum><text display-inline="yes-display-inline">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.</text>
</paragraph></subsection><subsection id="H9195DD32EADB4794991D7C17608557D0"><enum>(b)</enum><header>Amounts and
schedule</header><text display-inline="yes-display-inline">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—</text>
<paragraph id="HCF7BC94BA3224218B06792D7D2A66F76"><enum>(1)</enum><text>shall commence no
sooner than 6 months after the date of enactment of this Act;</text>
</paragraph><paragraph id="H768C2037D72A4B95AC3F644D2C16A841"><enum>(2)</enum><text display-inline="yes-display-inline">shall be completed, at the discretion of
the Secretary, not later than 5 years after the date of enactment of this
Act;</text>
</paragraph><paragraph id="HBDE0C7C718E047DA9E78AC27B7982B48"><enum>(3)</enum><text>shall be carried
out in a manner so as to maximize the monetary value to the Federal Government;
and</text>
</paragraph><paragraph id="H4C789252E59948CEA335BE128007DFBD"><enum>(4)</enum><text>shall be carried
out using the receipts from the sales of light grade petroleum authorized under
this section.</text>
</paragraph></subsection><subsection id="H2BAA27F1DEE64689A17D4FB53CDA2318"><enum>(c)</enum><header>Deferrals</header><text display-inline="yes-display-inline">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.</text>
</subsection></section>