[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2973 Placed on Calendar Senate (PCS)]






                                                       Calendar No. 727
110th CONGRESS
  2d Session
                                S. 2973

  To promote the energy security of the United States, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 2, 2008

 Mr. Domenici (for himself, Mr. Bunning, Mr. Sessions, Mrs. Hutchison, 
  Mr. Bond, Mr. Inhofe, Ms. Murkowski, Mr. Barrasso, Mr. Bennett, Mr. 
Wicker, Mr. Chambliss, Mr. Stevens, Mr. Cornyn, Mr. Enzi, Mr. Isakson, 
  Mr. Thune, Mr. Voinovich, and Mr. Allard) introduced the following 
                  bill; which was read the first time

                              May 6, 2008

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
  To promote the energy security of the United States, and for other 
                               purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
                     TITLE I--TRADITIONAL RESOURCES

                  Subtitle A--Outer Continental Shelf

Sec. 101. Publication of projected State lines on outer Continental 
                            Shelf.
Sec. 102. Production of oil and natural gas in new producing areas.
Sec. 103. Conforming amendment.
       Subtitle B--Leasing Program for Land Within Coastal Plain

Sec. 111. Definitions.
Sec. 112. Leasing program for land within the Coastal Plain.
Sec. 113. Lease sales.
Sec. 114. Grant of leases by the Secretary.
Sec. 115. Lease terms and conditions.
Sec. 116. Coastal plain environmental protection.
Sec. 117. Expedited judicial review.
Sec. 118. Rights-of-way and easements across Coastal Plain.
Sec. 119. Conveyance.
Sec. 120. Local government impact aid and community service assistance.
Sec. 121. Prohibition on exports.
Sec. 122. Allocation of revenues.
                         Subtitle C--Permitting

Sec. 131. Refinery permitting process.
Sec. 132. Removal of additional fee for new applications for permits to 
                            drill.
                Subtitle D--Strategic Petroleum Reserve

Sec. 141. Suspension of petroleum acquisition for Strategic Petroleum 
                            Reserve.
                Subtitle E--Restoration of State Revenue

Sec. 151. Restoration of State revenue.
                    TITLE II--ALTERNATIVE RESOURCES

       Subtitle A--Renewable Fuel and Advanced Energy Technology

Sec. 201. Definition of renewable biomass.
Sec. 202. Advanced battery manufacturing incentive program.
Sec. 203. Biofuels infrastructure and additives research and 
                            development.
Sec. 204. Study of increased consumption of ethanol-blended gasoline 
                            with higher levels of ethanol.
Sec. 205. Study of diesel vehicle attributes.
        Subtitle B--Clean Coal-Derived Fuels for Energy Security

Sec. 211. Short title.
Sec. 212. Definitions.
Sec. 213. Clean coal-derived fuel program.
                         Subtitle C--Oil Shale

Sec. 221. Removal of prohibition on final regulations for commercial 
                            leasing program for oil shale resources on 
                            public land.
Subtitle D--Department of Defense Facilitation of Secure Domestic Fuel 
                              Development

Sec. 231. Procurement and acquisition of alternative fuels.
Sec. 232. Multiyear contract authority for the Department of Defense 
                            for the procurement of synthetic fuels.

SEC. 2. DEFINITION OF SECRETARY.

    In this Act, the term ``Secretary'' means the Secretary of Energy.

                     TITLE I--TRADITIONAL RESOURCES

                  Subtitle A--Outer Continental Shelf

SEC. 101. PUBLICATION OF PROJECTED STATE LINES ON OUTER CONTINENTAL 
              SHELF.

    Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1333(a)(2)(A)) is amended--
            (1) by designating the first, second, and third sentences 
        as clause (i), (iii), and (iv), respectively;
            (2) in clause (i) (as so designated), by inserting before 
        the period at the end the following: ``not later than 90 days 
        after the date of enactment of the American Energy Production 
        Act of 2008''; and
            (3) by inserting after clause (i) (as so designated) the 
        following:
    ``(ii)(I) The projected lines shall also be used for the purpose of 
preleasing and leasing activities conducted in new producing areas 
under section 32.
    ``(II) This clause shall not affect any property right or title to 
Federal submerged land on the outer Continental Shelf.
    ``(III) In carrying out this clause, the President shall consider 
the offshore administrative boundaries beyond State submerged lands for 
planning, coordination, and administrative purposes of the Department 
of the Interior, but may establish different boundaries.''.

SEC. 102. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING AREAS.

    The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is 
amended by adding at the end the following:

``SEC. 32. PRODUCTION OF OIL AND NATURAL GAS IN NEW PRODUCING AREAS.

    ``(a) Definitions.--In this section:
            ``(1) Coastal political subdivision.--The term `coastal 
        political subdivision' means a political subdivision of a new 
        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 new producing State as of the 
                date of enactment of this section; and
                    ``(B) not more than 200 nautical miles from the 
                geographic center of any leased tract.
            ``(2) Moratorium area.--
                    ``(A) In general.--The term `moratorium area' means 
                an area covered by sections 104 through 105 of the 
                Department of the Interior, Environment, and Related 
                Agencies Appropriations Act, 2008 (Public Law 110-161; 
                121 Stat. 2118) (as in effect on the day before the 
                date of enactment of this section).
                    ``(B) Exclusion.--The term `moratorium area' does 
                not include an area located in the Gulf of Mexico.
            ``(3) New producing area.--The term `new producing area' 
        means any moratorium area within the offshore administrative 
        boundaries beyond the submerged land of a State that is located 
        greater than 50 miles from the coastline of the State.
            ``(4) New producing state.--The term `new producing State' 
        means a State that has, within the offshore administrative 
        boundaries beyond the submerged land of the State, a new 
        producing area available for oil and gas leasing under 
        subsection (b).
            ``(5) Offshore administrative boundaries.--The term 
        `offshore administrative boundaries' means the administrative 
        boundaries established by the Secretary beyond State submerged 
        land for planning, coordination, and administrative purposes of 
        the Department of the Interior and published in the Federal 
        Register on January 3, 2006 (71 Fed. Reg. 127).
            ``(6) Qualified outer continental shelf revenues.--
                    ``(A) In general.--The term `qualified outer 
                Continental Shelf revenues' means all rentals, 
                royalties, bonus bids, and other sums due and payable 
                to the United States from leases entered into on or 
                after the date of enactment of this section for new 
                producing areas.
                    ``(B) Exclusions.--The term `qualified outer 
                Continental Shelf revenues' does not include--
                            ``(i) revenues from a bond or other surety 
                        forfeited for obligations other than the 
                        collection of royalties;
                            ``(ii) revenues from civil penalties;
                            ``(iii) royalties taken by the Secretary 
                        in-kind and not sold;
                            ``(iv) revenues generated from leases 
                        subject to section 8(g); or
                            ``(v) any revenues considered qualified 
                        outer Continental Shelf revenues under section 
                        102 of the Gulf of Mexico Energy Security Act 
                        of 2006 (43 U.S.C. 1331 note; Public Law 109-
                        432).
    ``(b) Petition for Leasing New Producing Areas.--
            ``(1) In general.--Beginning on the date on which the 
        President delineates projected State lines under section 
        4(a)(2)(A)(ii), the Governor of a State with a new producing 
        area within the offshore administrative boundaries beyond the 
        submerged land of the State may submit to the Secretary a 
        petition requesting that the Secretary make the new producing 
        area available for oil and gas leasing.
            ``(2) Action by secretary.--Notwithstanding section 18, as 
        soon as practicable after receipt of a petition under paragraph 
        (1), the Secretary shall approve the petition if the Secretary 
        determines that leasing the new producing area would not create 
        an unreasonable risk of harm to the marine, human, or coastal 
        environment.
    ``(c) Disposition of Qualified Outer Continental Shelf Revenues 
From New Producing Areas.--
            ``(1) In general.--Notwithstanding section 9 and subject to 
        the other provisions of this subsection, for each applicable 
        fiscal year, the Secretary of the Treasury shall deposit--
                    ``(A) 50 percent of qualified outer Continental 
                Shelf revenues in the general fund of the Treasury; and
                    ``(B) 50 percent of qualified outer Continental 
                Shelf revenues in a special account in the Treasury 
                from which the Secretary shall disburse--
                            ``(i) 75 percent to new producing States in 
                        accordance with paragraph (2); and
                            ``(ii) 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).
            ``(2) Allocation to new producing states and coastal 
        political subdivisions.--
                    ``(A) Allocation to new producing states.--
                Effective for fiscal year 2008 and each fiscal year 
                thereafter, the amount made available under paragraph 
                (1)(B)(i) shall be allocated to each new producing 
                State in amounts (based on a formula established by the 
                Secretary by regulation) proportional to the amount of 
                qualified outer Continental Shelf revenues generated in 
                the new producing area offshore each State.
                    ``(B) Payments to coastal political subdivisions.--
                            ``(i) In general.--The Secretary shall pay 
                        20 percent of the allocable share of each new 
                        producing State, as determined under 
                        subparagraph (A), to the coastal political 
                        subdivisions of the new producing State.
                            ``(ii) Allocation.--The amount paid by the 
                        Secretary to coastal political subdivisions 
                        shall be allocated to each coastal political 
                        subdivision in accordance with subparagraphs 
                        (B) and (C) of section 31(b)(4).
            ``(3) Minimum allocation.--The amount allocated to a new 
        producing State for each fiscal year under paragraph (2) shall 
        be at least 5 percent of the amounts available under for the 
        fiscal year under paragraph (1)(B)(i).
            ``(4) Timing.--The amounts required to be deposited under 
        subparagraph (B) of paragraph (1) for the applicable fiscal 
        year shall be made available in accordance with that 
        subparagraph during the fiscal year immediately following the 
        applicable fiscal year.
            ``(5) Authorized uses.--
                    ``(A) In general.--Subject to subparagraph (B), 
                each new producing State and coastal political 
                subdivision shall use all amounts received under 
                paragraph (2) in accordance with all applicable Federal 
                and State laws, only for 1 or more of the following 
                purposes:
                            ``(i) Projects and activities for the 
                        purposes of coastal protection, including 
                        conservation, coastal restoration, hurricane 
                        protection, and infrastructure directly 
                        affected by coastal wetland losses.
                            ``(ii) Mitigation of damage to fish, 
                        wildlife, or natural resources.
                            ``(iii) Implementation of a federally 
                        approved marine, coastal, or comprehensive 
                        conservation management plan.
                            ``(iv) Mitigation of the impact of outer 
                        Continental Shelf activities through the 
                        funding of onshore infrastructure projects.
                            ``(v) Planning assistance and the 
                        administrative costs of complying with this 
                        section.
                    ``(B) Limitation.--Not more than 3 percent of 
                amounts received by a new producing State or coastal 
                political subdivision under paragraph (2) may be used 
                for the purposes described in subparagraph (A)(v).
            ``(6) Administration.--Amounts made available under 
        paragraph (1)(B) shall--
                    ``(A) be made available, without further 
                appropriation, in accordance with this subsection;
                    ``(B) remain available until expended; and
                    ``(C) be in addition to any amounts appropriated 
                under--
                            ``(i) other provisions of this Act;
                            ``(ii) the Land and Water Conservation Fund 
                        Act of 1965 (16 U.S.C. 460l-4 et seq.); or
                            ``(iii) any other provision of law.
    ``(d) Disposition of Qualified Outer Continental Shelf Revenues 
From Other Areas.--Notwithstanding section 9, for each applicable 
fiscal year, the terms and conditions of subsection (c) shall apply to 
the disposition of qualified outer Continental Shelf revenues that--
            ``(1) are derived from oil or gas leasing in an area that 
        is not included in the current 5-year plan of the Secretary for 
        oil or gas leasing; and
            ``(2) are not assumed in the budget of the United States 
        Government submitted by the President under section 1105 of 
        title 31, United States Code.''.

SEC. 103. CONFORMING AMENDMENT.

    Sections 104 through 105 of the Department of the Interior, 
Environment, and Related Agencies Appropriations Act, 2008 (Public Law 
110-161; 121 Stat. 2118) are repealed.

       Subtitle B--Leasing Program for Land Within Coastal Plain

SEC. 111. DEFINITIONS.

    In this subtitle:
            (1) Coastal plain.--The term ``Coastal Plain'' means that 
        area identified as the ``1002 Coastal Plain Area'' on the map.
            (2) Federal agreement.--The term ``Federal Agreement'' 
        means the Federal Agreement and Grant Right-of-Way for the 
        Trans-Alaska Pipeline issued on January 23, 1974, in accordance 
        with section 28 of the Mineral Leasing Act (30 U.S.C. 185) and 
        the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1651 et 
        seq.).
            (3) Final statement.--The term ``Final Statement'' means 
        the final legislative environmental impact statement on the 
        Coastal Plain, dated April 1987, and prepared pursuant to 
        section 1002 of the Alaska National Interest Lands Conservation 
        Act (16 U.S.C. 3142) and section 102(2)(C) of the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)).
            (4) Map.--The term ``map'' means the map entitled ``Arctic 
        National Wildlife Refuge'', dated September 2005, and prepared 
        by the United States Geological Survey.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior (or the designee of the Secretary), acting 
        through the Director of the Bureau of Land Management in 
        consultation with the Director of the United States Fish and 
        Wildlife Service and in coordination with a State coordinator 
        appointed by the Governor of the State of Alaska.

SEC. 112. LEASING PROGRAM FOR LAND WITHIN THE COASTAL PLAIN.

    (a) In General.--
            (1) Authorization.--Congress authorizes the exploration, 
        leasing, development, production, and economically feasible and 
        prudent transportation of oil and gas in and from the Coastal 
        Plain.
            (2) Actions.--The Secretary shall take such actions as are 
        necessary--
                    (A) to establish and implement, in accordance with 
                this subtitle, a competitive oil and gas leasing 
                program that will result in an environmentally sound 
                program for the exploration, development, and 
                production of the oil and gas resources of the Coastal 
                Plain while taking into consideration the interests and 
                concerns of residents of the Coastal Plain, which is 
                the homeland of the Kaktovikmiut Inupiat; and
                    (B) to administer this subtitle through 
                regulations, lease terms, conditions, restrictions, 
                prohibitions, stipulations, and other provisions that--
                            (i) ensure the oil and gas exploration, 
                        development, and production activities on the 
                        Coastal Plain will result in no significant 
                        adverse effect on fish and wildlife, their 
                        habitat, subsistence resources, and the 
                        environment; and
                            (ii) require the application of the best 
                        commercially available technology for oil and 
                        gas exploration, development, and production to 
                        all exploration, development, and production 
                        operations under this subtitle in a manner that 
                        ensures the receipt of fair market value by the 
                        public for the mineral resources to be leased.
    (b) Repeal.--
            (1) Repeal.--Section 1003 of the Alaska National Interest 
        Lands Conservation Act (16 U.S.C. 3143) is repealed.
            (2) Conforming amendment.--The table of contents contained 
        in section 1 of that Act (16 U.S.C. 3101 note) is amended by 
        striking the item relating to section 1003.
    (c) Compliance With Requirements Under Certain Other Laws.--
            (1) Compatibility.--For purposes of the National Wildlife 
        Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
        seq.)--
                    (A) the oil and gas pre-leasing and leasing 
                program, and activities authorized by this section in 
                the Coastal Plain, shall be considered to be compatible 
                with the purposes for which the Arctic National 
                Wildlife Refuge was established; and
                    (B) no further findings or decisions shall be 
                required to implement that program and those 
                activities.
            (2) Adequacy of the department of the interior's 
        legislative environmental impact statement.--The Final 
        Statement shall be considered to satisfy the requirements under 
        the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
        et seq.) that apply with respect to pre-leasing activities, 
        including exploration programs and actions authorized to be 
        taken by the Secretary to develop and promulgate the 
        regulations for the establishment of a leasing program 
        authorized by this subtitle before the conduct of the first 
        lease sale.
            (3) Compliance with nepa for other actions.--
                    (A) In general.--Before conducting the first lease 
                sale under this subtitle, the Secretary shall prepare 
                an environmental impact statement in accordance with 
                the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.) with respect to the actions 
                authorized by this subtitle that are not referred to in 
                paragraph (2).
                    (B) Identification and analysis.--Notwithstanding 
                any other provision of law, in carrying out this 
                paragraph, the Secretary shall not be required--
                            (i) to identify nonleasing alternative 
                        courses of action; or
                            (ii) to analyze the environmental effects 
                        of those courses of action.
                    (C) Identification of preferred action.--Not later 
                than 18 months after the date of enactment of this Act, 
                the Secretary shall--
                            (i) identify only a preferred action and a 
                        single leasing alternative for the first lease 
                        sale authorized under this subtitle; and
                            (ii) analyze the environmental effects and 
                        potential mitigation measures for those 2 
                        alternatives.
                    (D) Public comments.--In carrying out this 
                paragraph, the Secretary shall consider only public 
                comments that are filed not later than 20 days after 
                the date of publication of a draft environmental impact 
                statement.
                    (E) Effect of compliance.--Notwithstanding any 
                other provision of law, compliance with this paragraph 
                shall be considered to satisfy all requirements for the 
                analysis and consideration of the environmental effects 
                of proposed leasing under this subtitle.
    (d) Relationship to State and Local Authority.--Nothing in this 
subtitle expands or limits any State or local regulatory authority.
    (e) Special Areas.--
            (1) Designation.--
                    (A) In general.--The Secretary, after consultation 
                with the State of Alaska, the North Slope Borough, 
                Alaska, and the City of Kaktovik, Alaska, may designate 
                not more than 45,000 acres of the Coastal Plain as a 
                special area if the Secretary determines that the 
                special area would be of such unique character and 
                interest as to require special management and 
                regulatory protection.
                    (B) Sadlerochit spring area.--The Secretary shall 
                designate as a special area in accordance with 
                subparagraph (A) the Sadlerochit Spring area, 
                comprising approximately 4,000 acres as depicted on the 
                map.
            (2) Management.--The Secretary shall manage each special 
        area designated under this subsection in a manner that--
                    (A) respects and protects the Native people of the 
                area; and
                    (B) preserves the unique and diverse character of 
                the area, including fish, wildlife, subsistence 
                resources, and cultural values of the area.
            (3) Exclusion from leasing or surface occupancy.--
                    (A) In general.--The Secretary may exclude any 
                special area designated under this subsection from 
                leasing.
                    (B) No surface occupancy.--If the Secretary leases 
                all or a portion of a special area for the purposes of 
                oil and gas exploration, development, production, and 
                related activities, there shall be no surface occupancy 
                of the land comprising the special area.
            (4) Directional drilling.--Notwithstanding any other 
        provision of this subsection, the Secretary may lease all or a 
        portion of a special area under terms that permit the use of 
        horizontal drilling technology from sites on leases located 
        outside the special area.
    (f) Limitation on Closed Areas.--The Secretary may not close land 
within the Coastal Plain to oil and gas leasing or to exploration, 
development, or production except in accordance with this subtitle.
    (g) Regulations.--
            (1) In general.--Not later than 15 months after the date of 
        enactment of this Act, in consultation with appropriate 
        agencies of the State of Alaska, the North Slope Borough, 
        Alaska, and the City of Kaktovik, Alaska, the Secretary shall 
        issue such regulations as are necessary to carry out this 
        subtitle, including rules and regulations relating to 
        protection of the fish and wildlife, fish and wildlife habitat, 
        and subsistence resources of the Coastal Plain.
            (2) Revision of regulations.--The Secretary may 
        periodically review and, as appropriate, revise the rules and 
        regulations issued under paragraph (1) to reflect any 
        significant scientific or engineering data that come to the 
        attention of the Secretary.

SEC. 113. LEASE SALES.

    (a) In General.--Land may be leased pursuant to this subtitle to 
any person qualified to obtain a lease for deposits of oil and gas 
under the Mineral Leasing Act (30 U.S.C. 181 et seq.).
    (b) Procedures.--The Secretary shall, by regulation, establish 
procedures for--
            (1) receipt and consideration of sealed nominations for any 
        area in the Coastal Plain for inclusion in, or exclusion (as 
        provided in subsection (c)) from, a lease sale;
            (2) the holding of lease sales after that nomination 
        process; and
            (3) public notice of and comment on designation of areas to 
        be included in, or excluded from, a lease sale.
    (c) Lease Sale Bids.--Bidding for leases under this subtitle shall 
be by sealed competitive cash bonus bids.
    (d) Acreage Minimum in First Sale.--For the first lease sale under 
this subtitle, the Secretary shall offer for lease those tracts the 
Secretary considers to have the greatest potential for the discovery of 
hydrocarbons, taking into consideration nominations received pursuant 
to subsection (b)(1), but in no case less than 200,000 acres.
    (e) Timing of Lease Sales.--The Secretary shall--
            (1) not later than 22 months after the date of enactment of 
        this Act, conduct the first lease sale under this subtitle;
            (2) not later than September 30, 2012, conduct a second 
        lease sale under this subtitle; and
            (3) conduct additional sales at appropriate intervals if 
        sufficient interest in exploration or development exists to 
        warrant the conduct of the additional sales.

SEC. 114. GRANT OF LEASES BY THE SECRETARY.

    (a) In General.--Upon payment by a lessee of such bonus as may be 
accepted by the Secretary, the Secretary may grant to the highest 
responsible qualified bidder in a lease sale conducted pursuant to 
section 113 a lease for any land on the Coastal Plain.
    (b) Subsequent Transfers.--
            (1) In general.--No lease issued under this subtitle may be 
        sold, exchanged, assigned, sublet, or otherwise transferred 
        except with the approval of the Secretary.
            (2) Condition for approval.--Before granting any approval 
        described in paragraph (1), the Secretary shall consult with 
        and give due consideration to the opinion of the Attorney 
        General.

SEC. 115. LEASE TERMS AND CONDITIONS.

    (a) In General.--An oil or gas lease issued pursuant to this 
subtitle shall--
            (1) provide for the payment of a royalty of not less than 
        16\1/2\ percent of the amount or value of the production 
        removed or sold from the lease, as determined by the Secretary 
        in accordance with regulations applicable to other Federal oil 
        and gas leases;
            (2) provide that the Secretary may close, on a seasonal 
        basis, such portions of the Coastal Plain to exploratory 
        drilling activities as are necessary to protect caribou calving 
        areas and other species of fish and wildlife;
            (3) require that each lessee of land within the Coastal 
        Plain shall be fully responsible and liable for the reclamation 
        of land within the Coastal Plain and any other Federal land 
        that is adversely affected in connection with exploration, 
        development, production, or transportation activities within 
        the Coastal Plain conducted by the lessee or by any of the 
        subcontractors or agents of the lessee;
            (4) provide that the lessee may not delegate or convey, by 
        contract or otherwise, that reclamation responsibility and 
        liability to another person without the express written 
        approval of the Secretary;
            (5) provide that the standard of reclamation for land 
        required to be reclaimed under this subtitle shall be, to the 
        maximum extent practicable--
                    (A) a condition capable of supporting the uses that 
                the land was capable of supporting prior to any 
                exploration, development, or production activities; or
                    (B) upon application by the lessee, to a higher or 
                better standard, as approved by the Secretary;
            (6) contain terms and conditions relating to protection of 
        fish and wildlife, fish and wildlife habitat, subsistence 
        resources, and the environment as required under section 
        112(a)(2);
            (7) provide that each lessee, and each agent and contractor 
        of a lessee, use their best efforts to provide a fair share of 
        employment and contracting for Alaska Natives and Alaska Native 
        Corporations from throughout the State of Alaska, as determined 
        by the level of obligation previously agreed to in the Federal 
        Agreement; and
            (8) contain such other provisions as the Secretary 
        determines to be necessary to ensure compliance with this 
        subtitle and regulations issued under this subtitle.
    (b) Project Labor Agreements.--The Secretary, as a term and 
condition of each lease under this subtitle, and in recognizing the 
proprietary interest of the Federal Government in labor stability and 
in the ability of construction labor and management to meet the 
particular needs and conditions of projects to be developed under the 
leases issued pursuant to this subtitle (including the special concerns 
of the parties to those leases), shall require that each lessee, and 
each agent and contractor of a lessee, under this subtitle negotiate to 
obtain a project labor agreement for the employment of laborers and 
mechanics on production, maintenance, and construction under the lease.

SEC. 116. COASTAL PLAIN ENVIRONMENTAL PROTECTION.

    (a) No Significant Adverse Effect Standard To Govern Authorized 
Coastal Plain Activities.--In accordance with section 112, the 
Secretary shall administer this subtitle through regulations, lease 
terms, conditions, restrictions, prohibitions, stipulations, or other 
provisions that--
            (1) ensure, to the maximum extent practicable, that oil and 
        gas exploration, development, and production activities on the 
        Coastal Plain will result in no significant adverse effect on 
        fish and wildlife, fish and wildlife habitat, and the 
        environment;
            (2) require the application of the best commercially 
        available technology for oil and gas exploration, development, 
        and production on all new exploration, development, and 
        production operations; and
            (3) ensure that the maximum surface acreage covered in 
        connection with the leasing program by production and support 
        facilities, including airstrips and any areas covered by gravel 
        berms or piers for support of pipelines, does not exceed 2,000 
        acres on the Coastal Plain.
    (b) Site-Specific Assessment and Mitigation.--The Secretary shall 
require, with respect to any proposed drilling and related activities 
on the Coastal Plain, that--
            (1) a site-specific environmental analysis be made of the 
        probable effects, if any, that the drilling or related 
        activities will have on fish and wildlife, fish and wildlife 
        habitat, subsistence resources, subsistence uses, and the 
        environment;
            (2) a plan be implemented to avoid, minimize, and mitigate 
        (in that order and to the maximum extent practicable) any 
        significant adverse effect identified under paragraph (1); and
            (3) the development of the plan occur after consultation 
        with--
                    (A) each agency having jurisdiction over matters 
                mitigated by the plan;
                    (B) the State of Alaska;
                    (C) North Slope Borough, Alaska; and
                    (D) the City of Kaktovik, Alaska.
    (c) Regulations To Protect Coastal Plain Fish and Wildlife 
Resources, Subsistence Users, and the Environment.--Before implementing 
the leasing program authorized by this subtitle, the Secretary shall 
prepare and issue regulations, lease terms, conditions, restrictions, 
prohibitions, stipulations, or other measures designed to ensure, to 
the maximum extent practicable, that the activities carried out on the 
Coastal Plain under this subtitle are conducted in a manner consistent 
with the purposes and environmental requirements of this subtitle.
    (d) Compliance With Federal and State Environmental Laws and Other 
Requirements.--The proposed regulations, lease terms, conditions, 
restrictions, prohibitions, and stipulations for the leasing program 
under this subtitle shall require--
            (1) compliance with all applicable provisions of Federal 
        and State environmental law (including regulations);
            (2) implementation of and compliance with--
                    (A) standards that are at least as effective as the 
                safety and environmental mitigation measures, as 
                described in items 1 through 29 on pages 167 through 
                169 of the Final Statement, on the Coastal Plain;
                    (B) seasonal limitations on exploration, 
                development, and related activities, as necessary, to 
                avoid significant adverse effects during periods of 
                concentrated fish and wildlife breeding, denning, 
                nesting, spawning, and migration;
                    (C) design safety and construction standards for 
                all pipelines and any access and service roads that 
                minimize, to the maximum extent practicable, adverse 
                effects on--
                            (i) the passage of migratory species (such 
                        as caribou); and
                            (ii) the flow of surface water by requiring 
                        the use of culverts, bridges, or other 
                        structural devices;
                    (D) prohibitions on general public access to, and 
                use of, all pipeline access and service roads;
                    (E) stringent reclamation and rehabilitation 
                requirements in accordance with this subtitle for the 
                removal from the Coastal Plain of all oil and gas 
                development and production facilities, structures, and 
                equipment on completion of oil and gas production 
                operations, except in a case in which the Secretary 
                determines that those facilities, structures, or 
                equipment--
                            (i) would assist in the management of the 
                        Arctic National Wildlife Refuge; and
                            (ii) are donated to the United States for 
                        that purpose;
                    (F) appropriate prohibitions or restrictions on--
                            (i) access by all modes of transportation;
                            (ii) sand and gravel extraction; and
                            (iii) use of explosives;
                    (G) reasonable stipulations for protection of 
                cultural and archaeological resources;
                    (H) measures to protect groundwater and surface 
                water, including--
                            (i) avoidance, to the maximum extent 
                        practicable, of springs, streams, and river 
                        systems;
                            (ii) the protection of natural surface 
                        drainage patterns and wetland and riparian 
                        habitats; and
                            (iii) the regulation of methods or 
                        techniques for developing or transporting 
                        adequate supplies of water for exploratory 
                        drilling; and
                    (I) research, monitoring, and reporting 
                requirements;
            (3) that exploration activities (except surface geological 
        studies) be limited to the period between approximately 
        November 1 and May 1 of each year and be supported, if 
        necessary, by ice roads, winter trails with adequate snow 
        cover, ice pads, ice airstrips, and air transport methods 
        (except that those exploration activities may be permitted at 
        other times if the Secretary determines that the exploration 
        will have no significant adverse effect on fish and wildlife, 
        fish and wildlife habitat, subsistence resources, and the 
        environment of the Coastal Plain);
            (4) consolidation of facility siting;
            (5) avoidance or reduction of air traffic-related 
        disturbance to fish and wildlife;
            (6) treatment and disposal of hazardous and toxic wastes, 
        solid wastes, reserve pit fluids, drilling muds and cuttings, 
        and domestic wastewater, including, in accordance with 
        applicable Federal and State environmental laws (including 
        regulations)--
                    (A) preparation of an annual waste management 
                report;
                    (B) development and implementation of a hazardous 
                materials tracking system; and
                    (C) prohibition on the use of chlorinated solvents;
            (7) fuel storage and oil spill contingency planning;
            (8) conduct of periodic field crew environmental briefings;
            (9) avoidance of significant adverse effects on subsistence 
        hunting, fishing, and trapping;
            (10) compliance with applicable air and water quality 
        standards;
            (11) appropriate seasonal and safety zone designations 
        around well sites, within which subsistence hunting and 
        trapping shall be limited; and
            (12) development and implementation of such other 
        protective environmental requirements, restrictions, terms, or 
        conditions as the Secretary, after consultation with the State 
        of Alaska, North Slope Borough, Alaska, and the City of 
        Kaktovik, Alaska, determines to be necessary.
    (e) Considerations.--In preparing and issuing regulations, lease 
terms, conditions, restrictions, prohibitions, or stipulations under 
this section, the Secretary shall take into consideration--
            (1) the stipulations and conditions that govern the 
        National Petroleum Reserve-Alaska leasing program, as set forth 
        in the 1999 Northeast National Petroleum Reserve-Alaska Final 
        Integrated Activity Plan/Environmental Impact Statement;
            (2) the environmental protection standards that governed 
        the initial Coastal Plain seismic exploration program under 
        parts 37.31 through 37.33 of title 50, Code of Federal 
        Regulations (or successor regulations); and
            (3) the land use stipulations for exploratory drilling on 
        the KIC-ASRC private land described in Appendix 2 of the 
        agreement between Arctic Slope Regional Corporation and the 
        United States dated August 9, 1983.
    (f) Facility Consolidation Planning.--
            (1) In general.--After providing for public notice and 
        comment, the Secretary shall prepare and periodically update a 
        plan to govern, guide, and direct the siting and construction 
        of facilities for the exploration, development, production, and 
        transportation of oil and gas resources from the Coastal Plain.
            (2) Objectives.--The objectives of the plan shall be--
                    (A) the avoidance of unnecessary duplication of 
                facilities and activities;
                    (B) the encouragement of consolidation of common 
                facilities and activities;
                    (C) the location or confinement of facilities and 
                activities to areas that will minimize impact on fish 
                and wildlife, fish and wildlife habitat, subsistence 
                resources, and the environment;
                    (D) the use of existing facilities, to the maximum 
                extent practicable; and
                    (E) the enhancement of compatibility between 
                wildlife values and development activities.
    (g) Access to Public Land.--The Secretary shall--
            (1) manage public land in the Coastal Plain in accordance 
        with subsections (a) and (b) of section 811 of the Alaska 
        National Interest Lands Conservation Act (16 U.S.C. 3121); and
            (2) ensure that local residents shall have reasonable 
        access to public land in the Coastal Plain for traditional 
        uses.

SEC. 117. EXPEDITED JUDICIAL REVIEW.

    (a) Filing of Complaints.--
            (1) Deadline.--A complaint seeking judicial review of a 
        provision of this subtitle or an action of the Secretary under 
        this subtitle shall be filed--
                    (A) except as provided in subparagraph (B), during 
                the 90-day period beginning on the date on which the 
                action being challenged was carried out; or
                    (B) in the case of a complaint based solely on 
                grounds arising after the 90-day period described in 
                subparagraph (A), during the 90-day period beginning on 
                the date on which the complainant knew or reasonably 
                should have known about the grounds for the complaint.
            (2) Venue.--A complaint seeking judicial review of a 
        provision of this subtitle or an action of the Secretary under 
        this subtitle shall be filed in the United States Court of 
        Appeals for the District of Columbia.
            (3) Scope.--
                    (A) In general.--Judicial review of a decision of 
                the Secretary under this subtitle (including an 
                environmental analysis of such a lease sale) shall be--
                            (i) limited to a review of whether the 
                        decision is in accordance with this subtitle; 
                        and
                            (ii) based on the administrative record of 
                        the decision.
                    (B) Presumptions.--Any identification by the 
                Secretary of a preferred course of action relating to a 
                lease sale, and any analysis by the Secretary of 
                environmental effects, under this subtitle shall be 
                presumed to be correct unless proven otherwise by clear 
                and convincing evidence.
    (b) Limitation on Other Review.--Any action of the Secretary that 
is subject to judicial review under this section shall not be subject 
to judicial review in any civil or criminal proceeding for enforcement.

SEC. 118. RIGHTS-OF-WAY AND EASEMENTS ACROSS COASTAL PLAIN.

    For purposes of section 1102(4)(A) of the Alaska National Interest 
Lands Conservation Act (16 U.S.C. 3162(4)(A)), any rights-of-way or 
easements across the Coastal Plain for the exploration, development, 
production, or transportation of oil and gas shall be considered to be 
established incident to the management of the Coastal Plain under this 
section.

SEC. 119. CONVEYANCE.

    Notwithstanding section 1302(h)(2) of the Alaska National Interest 
Lands Conservation Act (16 U.S.C. 3192(h)(2)), to remove any cloud on 
title to land, and to clarify land ownership patterns in the Coastal 
Plain, the Secretary shall--
            (1) to the extent necessary to fulfill the entitlement of 
        the Kaktovik Inupiat Corporation under sections 12 and 14 of 
        the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 1613), 
        as determined by the Secretary, convey to that Corporation the 
        surface estate of the land described in paragraph (1) of Public 
        Land Order 6959, in accordance with the terms and conditions of 
        the agreement between the Secretary, the United States Fish and 
        Wildlife Service, the Bureau of Land Management, and the 
        Kaktovik Inupiat Corporation, dated January 22, 1993; and
            (2) convey to the Arctic Slope Regional Corporation the 
        remaining subsurface estate to which that Corporation is 
        entitled under the agreement between that corporation and the 
        United States, dated August 9, 1983.

SEC. 120. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.

    (a) Establishment of Fund.--
            (1) In general.--As a condition on the receipt of funds 
        under section 122(2), the State of Alaska shall establish in 
        the treasury of the State, and administer in accordance with 
        this section, a fund to be known as the ``Coastal Plain Local 
        Government Impact Aid Assistance Fund'' (referred to in this 
        section as the ``Fund'').
            (2) Deposits.--Subject to paragraph (1), the Secretary of 
        the Treasury shall deposit into the Fund, $35,000,000 each year 
        from the amount available under section 122(2)(A).
            (3) Investment.--The Governor of the State of Alaska 
        (referred to in this section as the ``Governor'') shall invest 
        amounts in the Fund in interest-bearing securities of the 
        United States or the State of Alaska.
    (b) Assistance.--The Governor, in cooperation with the Mayor of the 
North Slope Borough, shall use amounts in the Fund to provide 
assistance to North Slope Borough, Alaska, the City of Kaktovik, 
Alaska, and any other borough, municipal subdivision, village, or other 
community in the State of Alaska that is directly impacted by 
exploration for, or the production of, oil or gas on the Coastal Plain 
under this subtitle, or any Alaska Native Regional Corporation acting 
on behalf of the villages and communities within its region whose lands 
lie along the right of way of the Trans Alaska Pipeline System, as 
determined by the Governor.
    (c) Application.--
            (1) In general.--To receive assistance under subsection 
        (b), a community or Regional Corporation described in that 
        subsection shall submit to the Governor, or to the Mayor of the 
        North Slope Borough, an application in such time, in such 
        manner, and containing such information as the Governor may 
        require.
            (2) Action by north slope borough.--The Mayor of the North 
        Slope Borough shall submit to the Governor each application 
        received under paragraph (1) as soon as practicable after the 
        date on which the application is received.
            (3) Assistance of governor.--The Governor shall assist 
        communities in submitting applications under this subsection, 
        to the maximum extent practicable.
    (d) Use of Funds.--A community or Regional Corporation that 
receives funds under subsection (b) may use the funds--
            (1) to plan for mitigation, implement a mitigation plan, or 
        maintain a mitigation project to address the potential effects 
        of oil and gas exploration and development on environmental, 
        social, cultural, recreational, and subsistence resources of 
        the community;
            (2) to develop, carry out, and maintain--
                    (A) a project to provide new or expanded public 
                facilities; or
                    (B) services to address the needs and problems 
                associated with the effects described in paragraph (1), 
                including firefighting, police, water and waste 
                treatment, first responder, and other medical services;
            (3) to compensate residents of the Coastal Plain for 
        significant damage to environmental, social, cultural, 
        recreational, or subsistence resources; and
            (4) in the City of Kaktovik, Alaska--
                    (A) to develop a mechanism for providing members of 
                the Kaktovikmiut Inupiat community an opportunity to--
                            (i) monitor development on the Coastal 
                        Plain; and
                            (ii) provide information and 
                        recommendations to the Governor based on 
                        traditional aboriginal knowledge of the natural 
                        resources, flora, fauna, and ecological 
                        processes of the Coastal Plain; and
                    (B) to establish a local coordination office, to be 
                managed by the Mayor of the North Slope Borough, in 
                coordination with the City of Kaktovik, Alaska--
                            (i) to coordinate with and advise 
                        developers on local conditions and the history 
                        of areas affected by development;
                            (ii) to provide to the Committee on 
                        Resources of the House of Representatives and 
                        the Committee on Energy and Natural Resources 
                        of the Senate annual reports on the status of 
                        the coordination between developers and 
                        communities affected by development;
                            (iii) to collect from residents of the 
                        Coastal Plain information regarding the impacts 
                        of development on fish, wildlife, habitats, 
                        subsistence resources, and the environment of 
                        the Coastal Plain; and
                            (iv) to ensure that the information 
                        collected under clause (iii) is submitted to--
                                    (I) developers; and
                                    (II) any appropriate Federal 
                                agency.

SEC. 121. PROHIBITION ON EXPORTS.

    An oil or gas lease issued under this subtitle shall prohibit the 
exportation of oil or gas produced under the lease.

SEC. 122. ALLOCATION OF REVENUES.

    Notwithstanding the Mineral Leasing Act (30 U.S.C. 181 et seq.) or 
any other provision of law, of the adjusted bonus, rental, and royalty 
receipts from Federal oil and gas leasing and operations authorized 
under this subtitle:
            (1) 50 percent shall be deposited in the general fund of 
        the Treasury.
            (2) The remainder shall be available as follows:
                    (A) $35,000,000 shall be deposited by the Secretary 
                of the Treasury into the fund created under section 
                120(a)(1).
                    (B) The remainder shall be disbursed to the State 
                of Alaska.

                         Subtitle C--Permitting

SEC. 131. REFINERY PERMITTING PROCESS.

    (a) Definitions.--In this section:
            (1) Administrator.--The term ``Administrator'' means the 
        Administrator of the Environmental Protection Agency.
            (2) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b).
            (3) Permit.--The term ``permit'' means any permit, license, 
        approval, variance, or other form of authorization that a 
        refiner is required to obtain--
                    (A) under any Federal law; or
                    (B) from a State or Indian tribal government agency 
                delegated authority by the Federal Government, or 
                authorized under Federal law, to issue permits.
            (4) Refiner.--The term ``refiner'' means a person that--
                    (A) owns or operates a refinery; or
                    (B) seeks to become an owner or operator of a 
                refinery.
            (5) Refinery.--
                    (A) In general.--The term ``refinery'' means--
                            (i) a facility at which crude oil is 
                        refined into transportation fuel or other 
                        petroleum products; and
                            (ii) a coal liquification or coal-to-liquid 
                        facility at which coal is processed into 
                        synthetic crude oil or any other fuel.
                    (B) Inclusions.--The term ``refinery'' includes an 
                expansion of a refinery.
            (6) Refinery expansion.--The term ``refinery expansion'' 
        means a physical change in a refinery that results in an 
        increase in the capacity of the refinery.
            (7) Refinery permitting agreement.--The term ``refinery 
        permitting agreement'' means an agreement entered into between 
        the Administrator and a State or Indian tribe under subsection 
        (b).
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (9) State.--The term ``State'' means--
                    (A) a State;
                    (B) the District of Columbia;
                    (C) the Commonwealth of Puerto Rico; and
                    (D) any other territory or possession of the United 
                States.
    (b) Streamlining of Refinery Permitting Process.--
            (1) In general.--At the request of the Governor of a State 
        or the governing body of an Indian tribe, the Administrator 
        shall enter into a refinery permitting agreement with the State 
        or Indian tribe under which the process for obtaining all 
        permits necessary for the construction and operation of a 
        refinery shall be streamlined using a systematic 
        interdisciplinary multimedia approach as provided in this 
        section.
            (2) Authority of administrator.--Under a refinery 
        permitting agreement--
                    (A) the Administrator shall have authority, as 
                applicable and necessary, to--
                            (i) accept from a refiner a consolidated 
                        application for all permits that the refiner is 
                        required to obtain to construct and operate a 
                        refinery;
                            (ii) in consultation and cooperation with 
                        each Federal, State, or Indian tribal 
                        government agency that is required to make any 
                        determination to authorize the issuance of a 
                        permit, establish a schedule under which each 
                        agency shall--
                                    (I) concurrently consider, to the 
                                maximum extent practicable, each 
                                determination to be made; and
                                    (II) complete each step in the 
                                permitting process; and
                            (iii) issue a consolidated permit that 
                        combines all permits issued under the schedule 
                        established under clause (ii); and
                    (B) the Administrator shall provide to State and 
                Indian tribal government agencies--
                            (i) financial assistance in such amounts as 
                        the agencies reasonably require to hire such 
                        additional personnel as are necessary to enable 
                        the government agencies to comply with the 
                        applicable schedule established under 
                        subparagraph (A)(ii); and
                            (ii) technical, legal, and other assistance 
                        in complying with the refinery permitting 
                        agreement.
            (3) Agreement by the state.--Under a refinery permitting 
        agreement, a State or governing body of an Indian tribe shall 
        agree that--
                    (A) the Administrator shall have each of the 
                authorities described in paragraph (2); and
                    (B) each State or Indian tribal government agency 
                shall--
                            (i) in accordance with State law, make such 
                        structural and operational changes in the 
                        agencies as are necessary to enable the 
                        agencies to carry out consolidated project-wide 
                        permit reviews concurrently and in coordination 
                        with the Environmental Protection Agency and 
                        other Federal agencies; and
                            (ii) comply, to the maximum extent 
                        practicable, with the applicable schedule 
                        established under paragraph (2)(A)(ii).
            (4) Deadlines.--
                    (A) New refineries.--In the case of a consolidated 
                permit for the construction of a new refinery, the 
                Administrator and the State or governing body of an 
                Indian tribe shall approve or disapprove the 
                consolidated permit not later than--
                            (i) 360 days after the date of the receipt 
                        of the administratively complete application 
                        for the consolidated permit; or
                            (ii) on agreement of the applicant, the 
                        Administrator, and the State or governing body 
                        of the Indian tribe, 90 days after the 
                        expiration of the deadline established under 
                        clause (i).
                    (B) Expansion of existing refineries.--In the case 
                of a consolidated permit for the expansion of an 
                existing refinery, the Administrator and the State or 
                governing body of an Indian tribe shall approve or 
                disapprove the consolidated permit not later than--
                            (i) 120 days after the date of the receipt 
                        of the administratively complete application 
                        for the consolidated permit; or
                            (ii) on agreement of the applicant, the 
                        Administrator, and the State or governing body 
                        of the Indian tribe, 30 days after the 
                        expiration of the deadline established under 
                        clause (i).
            (5) Federal agencies.--Each Federal agency that is required 
        to make any determination to authorize the issuance of a permit 
        shall comply with the applicable schedule established under 
        paragraph (2)(A)(ii).
            (6) Judicial review.--Any civil action for review of any 
        permit determination under a refinery permitting agreement 
        shall be brought exclusively in the United States district 
        court for the district in which the refinery is located or 
        proposed to be located.
            (7) Efficient permit review.--In order to reduce the 
        duplication of procedures, the Administrator shall use State 
        permitting and monitoring procedures to satisfy substantially 
        equivalent Federal requirements under this title.
            (8) Severability.--If 1 or more permits that are required 
        for the construction or operation of a refinery are not 
        approved on or before any deadline established under paragraph 
        (4), the Administrator may issue a consolidated permit that 
        combines all other permits that the refiner is required to 
        obtain other than any permits that are not approved.
            (9) Savings.--Nothing in this subsection affects the 
        operation or implementation of otherwise applicable law 
        regarding permits necessary for the construction and operation 
        of a refinery.
            (10) Consultation with local governments.--Congress 
        encourages the Administrator, States, and tribal governments to 
        consult, to the maximum extent practicable, with local 
        governments in carrying out this subsection.
            (11) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as are necessary to carry out this 
        subsection.
            (12) Effect on local authority.--Nothing in this subsection 
        affects--
                    (A) the authority of a local government with 
                respect to the issuance of permits; or
                    (B) any requirement or ordinance of a local 
                government (such as a zoning regulation).
    (c) Fischer-Tropsch Fuels.--
            (1) In general.--In cooperation with the Secretary of 
        Energy, the Secretary of Defense, the Administrator of the 
        Federal Aviation Administration, Secretary of Health and Human 
        Services, and Fischer-Tropsch industry representatives, the 
        Administrator shall--
                    (A) conduct a research and demonstration program to 
                evaluate the air quality benefits of ultra-clean 
                Fischer-Tropsch transportation fuel, including diesel 
                and jet fuel;
                    (B) evaluate the use of ultra-clean Fischer-Tropsch 
                transportation fuel as a mechanism for reducing engine 
                exhaust emissions; and
                    (C) submit recommendations to Congress on the most 
                effective use and associated benefits of these ultra-
                clean fuel for reducing public exposure to exhaust 
                emissions.
            (2) Guidance and technical support.--The Administrator 
        shall, to the extent necessary, issue any guidance or technical 
        support documents that would facilitate the effective use and 
        associated benefit of Fischer-Tropsch fuel and blends.
            (3) Requirements.--The program described in paragraph (1) 
        shall consider--
                    (A) the use of neat (100 percent) Fischer-Tropsch 
                fuel and blends with conventional crude oil-derived 
                fuel for heavy-duty and light-duty diesel engines and 
                the aviation sector; and
                    (B) the production costs associated with domestic 
                production of those ultra clean fuel and prices for 
                consumers.
            (4) Reports.--The Administrator shall submit to the 
        Committee on Environment and Public Works and the Committee on 
        Energy and Natural Resources of the Senate and the Committee on 
        Energy and Commerce of the House of Representatives--
                    (A) not later than 1 year, an interim report on 
                actions taken to carry out this subsection; and
                    (B) not later than 2 years, a final report on 
                actions taken to carry out this subsection.

SEC. 132. REMOVAL OF ADDITIONAL FEE FOR NEW APPLICATIONS FOR PERMITS TO 
              DRILL.

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

                Subtitle D--Strategic Petroleum Reserve

SEC. 141. SUSPENSION OF PETROLEUM ACQUISITION FOR STRATEGIC PETROLEUM 
              RESERVE.

    (a) In General.--Except as provided in subsection (b) and 
notwithstanding any other provision of law, during the 180-day period 
beginning on the date of enactment of this Act--
            (1) the Secretary of the Interior shall suspend acquisition 
        of petroleum for the Strategic Petroleum Reserve through the 
        royalty-in-kind program; and
            (2) the Secretary of Energy shall suspend acquisition of 
        petroleum for the Strategic Petroleum Reserve through any other 
        acquisition method.
    (b) Resumption.--Effective beginning on the day after the end of 
the period described in subsection (a)--
            (1) the Secretary of the Interior may resume acquisition of 
        petroleum for the Strategic Petroleum Reserve through the 
        royalty-in-kind program; and
            (2) the Secretary of Energy may resume acquisition of 
        petroleum for the Strategic Petroleum Reserve through any other 
        acquisition method.

                Subtitle E--Restoration of State Revenue

SEC. 151. RESTORATION OF STATE REVENUE.

    The matter under the heading ``administrative provisions'' under 
the heading ``Minerals Management Service'' of title I of the 
Department of the Interior, Environment, and Related Agencies 
Appropriations Act, 2008 (Public Law 110-161; 121 Stat. 2109) is 
amended by striking ``Notwithstanding'' and all that follows through 
``Treasury.''.

                    TITLE II--ALTERNATIVE RESOURCES

       Subtitle A--Renewable Fuel and Advanced Energy Technology

SEC. 201. DEFINITION OF RENEWABLE BIOMASS.

    Section 211(o)(1) of the Clean Air Act (42 U.S.C. 7545(o)(1)) is 
amended by striking subparagraph (I) and inserting the following:
                    ``(I) Renewable biomass.--The term `renewable 
                biomass' means--
                            ``(i) nonmerchantable materials or 
                        precommercial thinnings that--
                                    ``(I) are byproducts of preventive 
                                treatments, such as trees, wood, brush, 
                                thinnings, chips, and slash, that are 
                                removed--
                                            ``(aa) to reduce hazardous 
                                        fuels;
                                            ``(bb) to reduce or contain 
                                        disease or insect infestation; 
                                        or
                                            ``(cc) to restore forest 
                                        health;
                                    ``(II) would not otherwise be used 
                                for higher-value products; and
                                    ``(III) are harvested from National 
                                Forest System land or public land (as 
                                defined in section 103 of the Federal 
                                Land Policy and Management Act of 1976 
                                (43 U.S.C. 1702))--
                                            ``(aa) where permitted by 
                                        law; and
                                            ``(bb) in accordance with 
                                        applicable land management 
                                        plans and the requirements for 
                                        old-growth maintenance, 
                                        restoration, and management 
                                        direction of paragraphs (2), 
                                        (3), and (4) of subsection (e) 
                                        and the requirements for large-
                                        tree retention of subsection 
                                        (f) of section 102 of the 
                                        Healthy Forests Restoration Act 
                                        of 2003 (16 U.S.C. 6512); or
                            ``(ii) any organic matter that is available 
                        on a renewable or recurring basis from non-
                        Federal land or from land belonging to an 
                        Indian tribe, or an Indian individual, that is 
                        held in trust by the United States or subject 
                        to a restriction against alienation imposed by 
                        the United States, including--
                                    ``(I) renewable plant material, 
                                including--
                                            ``(aa) feed grains;
                                            ``(bb) other agricultural 
                                        commodities;
                                            ``(cc) other plants and 
                                        trees; and
                                            ``(dd) algae; and
                                    ``(II) waste material, including--
                                            ``(aa) crop residue;
                                            ``(bb) other vegetative 
                                        waste material (including wood 
                                        waste and wood residues);
                                            ``(cc) animal waste and 
                                        byproducts (including fats, 
                                        oils, greases, and manure); and
                                            ``(dd) food waste and yard 
                                        waste.''.

SEC. 202. ADVANCED BATTERY MANUFACTURING INCENTIVE PROGRAM.

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

SEC. 203. BIOFUELS INFRASTRUCTURE AND ADDITIVES RESEARCH AND 
              DEVELOPMENT.

    (a) In General.--The Assistant Administrator of the Office of 
Research and Development of the Environmental Protection Agency 
(referred to in this section as the ``Assistant Administrator''), in 
consultation with the Secretary and the National Institute of Standards 
and Technology, shall carry out a program of research and development 
of materials to be added to biofuels to make the biofuels more 
compatible with infrastructure used to store and deliver petroleum-
based fuels to the point of final sale.
    (b) Requirements.--In carrying out the program described in 
subsection (a), the Assistant Administrator shall address--
            (1) materials to prevent or mitigate--
                    (A) corrosion of metal, plastic, rubber, cork, 
                fiberglass, glues, or any other material used in pipes 
                and storage tanks;
                    (B) dissolving of storage tank sediments;
                    (C) clogging of filters;
                    (D) contamination from water or other adulterants 
                or pollutants;
                    (E) poor flow properties relating to low 
                temperatures;
                    (F) oxidative and thermal instability in long-term 
                storage and use; and
                    (G) microbial contamination;
            (2) problems associated with electrical conductivity;
            (3) alternatives to conventional methods for refurbishment 
        and cleaning of gasoline and diesel tanks, including tank 
        lining applications;
            (4) strategies to minimize emissions from infrastructure;
            (5) issues with respect to certification by a nationally 
        recognized testing laboratory of components for fuel-dispensing 
        devises that specifically reference compatibility with alcohol-
        blended fuels and other biofuels that contain greater than 15 
        percent alcohol;
            (6) challenges for design, reforming, storage, handling, 
        and dispensing hydrogen fuel from various feedstocks, including 
        biomass, from neighborhood fueling stations, including codes 
        and standards development necessary beyond that carried out 
        under section 809 of the Energy Policy Act of 2005 (42 U.S.C. 
        16158);
            (7) issues with respect to at which point in the fuel 
        supply chain additives optimally should be added to fuels; and
            (8) other problems, as identified by the Assistant 
        Administrator, in consultation with the Secretary and the 
        National Institute of Standards and Technology.

SEC. 204. STUDY OF INCREASED CONSUMPTION OF ETHANOL-BLENDED GASOLINE 
              WITH HIGHER LEVELS OF ETHANOL.

    (a) In General.--The Secretary, in cooperation with the Secretary 
of Agriculture, the Administrator of the Environmental Protection 
Agency, and the Secretary of Transportation, and after providing notice 
and an opportunity for public comment, shall conduct a study of the 
feasibility of increasing consumption in the United States of ethanol-
blended gasoline with levels of ethanol that are not less than 10 
percent and not more than 40 percent.
    (b) Study.--The study under subsection (a) shall include--
            (1) a review of production and infrastructure constraints 
        on increasing consumption of ethanol;
            (2) an evaluation of the economic, market, and energy-
        related impacts of State and regional differences in ethanol 
        blends;
            (3) an evaluation of the economic, market, and energy-
        related impacts on gasoline retailers and consumers of separate 
        and distinctly labeled fuel storage facilities and dispensers;
            (4) an evaluation of the environmental impacts of mid-level 
        ethanol blends on evaporative and exhaust emissions from on-
        road, off-road, and marine engines, recreational boats, 
        vehicles, and equipment;
            (5) an evaluation of the impacts of mid-level ethanol 
        blends on the operation, durability, and performance of on-
        road, off-road, and marine engines, recreational boats, 
        vehicles, and equipment;
            (6) an evaluation of the safety impacts of mid-level 
        ethanol blends on consumers that own and operate off-road and 
        marine engines, recreational boats, vehicles, or equipment; and
            (7) an evaluation of the impacts of increased use of 
        renewable fuels derived from food crops on the price and supply 
        of agricultural commodities in both domestic and global 
        markets.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to Congress a report describing 
the results of the study conducted under this section.

SEC. 205. STUDY OF DIESEL VEHICLE ATTRIBUTES.

    (a) In General.--The Secretary, in consultation with the 
Administrator of the Environmental Protection Agency and the Secretary 
of Transportation, shall conduct a study to identify--
            (1) the environmental and efficiency attributes of diesel-
        fueled vehicles as the vehicles compare to comparable gasoline 
        fueled, E-85 fueled, and hybrid vehicles;
            (2) the technical, economic, regulatory, environmental, and 
        other obstacles to increasing the usage of diesel-fueled 
        vehicles;
            (3) the legislative, administrative, and other actions that 
        could reduce or eliminate the obstacles identified under 
        paragraph (2); and
            (4) the costs and benefits associated with reducing or 
        eliminating the obstacles identified under paragraph (2).
    (b) Report.--Not later than 90 days after the date of enactment of 
this Act, the Secretary shall submit to the Committee on Energy and 
Natural Resources of the Senate and the Committee on Energy and 
Commerce of the House of Representatives a report describing the 
results of the study conducted under subsection (a).
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

        Subtitle B--Clean Coal-Derived Fuels for Energy Security

SEC. 211. SHORT TITLE.

    This subtitle may be cited as the ``Clean Coal-Derived Fuels for 
Energy Security Act of 2008''.

SEC. 212. DEFINITIONS.

    In this subtitle:
            (1) Clean coal-derived fuel.--
                    (A) In general.--The term ``clean coal-derived 
                fuel'' means aviation fuel, motor vehicle fuel, home 
                heating oil, or boiler fuel that is--
                            (i) substantially derived from the coal 
                        resources of the United States; and
                            (ii) refined or otherwise processed at a 
                        facility located in the United States that 
                        captures up to 100 percent of the carbon 
                        dioxide emissions that would otherwise be 
                        released at the facility.
                    (B) Inclusions.--The term ``clean coal-derived 
                fuel'' may include any other resource that is 
                extracted, grown, produced, or recovered in the United 
                States.
            (2) Covered fuel.--The term ``covered fuel'' means--
                    (A) aviation fuel;
                    (B) motor vehicle fuel;
                    (C) home heating oil; and
                    (D) boiler fuel.
            (3) Small refinery.--The term ``small refinery'' means a 
        refinery for which the average aggregate daily crude oil 
        throughput for a calendar year (as determined by dividing the 
        aggregate throughput for the calendar year by the number of 
        days in the calendar year) does not exceed 75,000 barrels.

SEC. 213. CLEAN COAL-DERIVED FUEL PROGRAM.

    (a) Program.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act, the President shall promulgate 
        regulations to ensure that covered fuel sold or introduced into 
        commerce in the United States (except in noncontiguous States 
        or territories), on an annual average basis, contains the 
        applicable volume of clean coal-derived fuel determined in 
        accordance with paragraph (4).
            (2) Provisions of regulations.--Regardless of the date of 
        promulgation, the regulations promulgated under paragraph (1)--
                    (A) shall contain compliance provisions applicable 
                to refineries, blenders, distributors, and importers, 
                as appropriate, to ensure that--
                            (i) the requirements of this subsection are 
                        met; and
                            (ii) clean coal-derived fuels produced from 
                        facilities for the purpose of compliance with 
                        this subtitle result in life cycle greenhouse 
                        gas emissions that are not greater than 
                        gasoline; and
                    (B) shall not--
                            (i) restrict geographic areas in the 
                        contiguous United States in which clean coal-
                        derived fuel may be used; or
                            (ii) impose any per-gallon obligation for 
                        the use of clean coal-derived fuel.
            (3) Relationship to other regulations.--Regulations 
        promulgated under this paragraph shall, to the maximum extent 
        practicable, incorporate the program structure, compliance and 
        reporting requirements established under the final regulations 
        promulgated to implement the renewable fuel program established 
        by the amendment made by section 1501(a)(2) of the Energy 
        Policy Act of 2005 (Public Law 109-58; 119 Stat. 1067).
            (4) Applicable volume.--
                    (A) Calendar years 2015 through 2022.--For the 
                purpose of this subsection, the applicable volume for 
                any of calendar years 2015 through 2022 shall be 
                determined in accordance with the following table:

                                             Applicable volume of clean
                                                      coal-derived fuel
Calendar year:                                (in billions of gallons):
        2015...................................................   0.75 
        2016...................................................    1.5 
        2017...................................................   2.25 
        2018...................................................   3.00 
        2019...................................................   3.75 
        2020...................................................    4.5 
        2021...................................................   5.25 
        2022...................................................    6.0.
                    (B) Calendar year 2023 and thereafter.--Subject to 
                subparagraph (C), for the purposes of this subsection, 
                the applicable volume for calendar year 2023 and each 
                calendar year thereafter shall be determined by the 
                President, in coordination with the Secretary and the 
                Administrator of the Environmental Protection Agency, 
                based on a review of the implementation of the program 
                during calendar years 2015 through 2022, including a 
                review of--
                            (i) the impact of clean coal-derived fuels 
                        on the energy security of the United States;
                            (ii) the expected annual rate of future 
                        production of clean coal-derived fuels; and
                            (iii) the impact of the use of clean coal-
                        derived fuels on other factors, including job 
                        creation, rural economic development, and the 
                        environment.
                    (C) Minimum applicable volume.--For the purpose of 
                this subsection, the applicable volume for calendar 
                year 2023 and each calendar year thereafter shall be 
                equal to the product obtained by multiplying--
                            (i) the number of gallons of covered fuel 
                        that the President estimates will be sold or 
                        introduced into commerce in the calendar year; 
                        and
                            (ii) the ratio that--
                                    (I) 6,000,000,000 gallons of clean 
                                coal-derived fuel; bears to
                                    (II) the number of gallons of 
                                covered fuel sold or introduced into 
                                commerce in calendar year 2022.
    (b) Applicable Percentages.--
            (1) Provision of estimate of volumes of certain fuel 
        sales.--Not later than October 31 of each of calendar years 
        2015 through 2021, the Administrator of the Energy Information 
        Administration shall provide to the President an estimate, with 
        respect to the following calendar year, of the volumes of 
        covered fuel projected to be sold or introduced into commerce 
        in the United States.
            (2) Determination of applicable percentages.--
                    (A) In general.--Not later than November 30 of each 
                of calendar years 2015 through 2022, based on the 
                estimate provided under paragraph (1), the President 
                shall determine and publish in the Federal Register, 
                with respect to the following calendar year, the clean 
                coal-derived fuel obligation that ensures that the 
                requirements of subsection (a) are met.
                    (B) Required elements.--The clean coal-derived fuel 
                obligation determined for a calendar year under 
                subparagraph (A) shall--
                            (i) be applicable to refineries, blenders, 
                        and importers, as appropriate;
                            (ii) be expressed in terms of a volume 
                        percentage of covered fuel sold or introduced 
                        into commerce in the United States; and
                            (iii) subject to paragraph (3)(A), consist 
                        of a single applicable percentage that applies 
                        to all categories of persons specified in 
                        clause (i).
            (3) Adjustments.--In determining the applicable percentage 
        for a calendar year, the President shall make adjustments--
                    (A) to prevent the imposition of redundant 
                obligations on any person specified in paragraph 
                (2)(B)(i); and
                    (B) to account for the use of clean coal-derived 
                fuel during the previous calendar year by small 
                refineries that are exempt under subsection (f).
    (c) Volume Conversion Factors for Clean Coal-Derived Fuels Based on 
Energy Content.--
            (1) In general.--For the purpose of subsection (a), the 
        President shall assign values to specific types of clean coal-
        derived fuel for the purpose of satisfying the fuel volume 
        requirements of subsection (a)(4) in accordance with this 
        subsection.
            (2) Energy content relative to diesel fuel.--For clean 
        coal-derived fuels, 1 gallon of the clean coal-derived fuel 
        shall be considered to be the equivalent of 1 gallon of diesel 
        fuel multiplied by the ratio that--
                    (A) the number of British thermal units of energy 
                produced by the combustion of 1 gallon of the clean 
                coal-derived fuel (as measured under conditions 
                determined by the Secretary); bears to
                    (B) the number of British thermal units of energy 
                produced by the combustion of 1 gallon of diesel fuel 
                (as measured under conditions determined by the 
                Secretary to be comparable to conditions described in 
                subparagraph (A)).
    (d) Credit Program.--
            (1) In general.--The President, in consultation with the 
        Secretary and the clean coal-derived fuel requirement of this 
        section.
            (2) Market transparency.--In carrying out the credit 
        program under this subsection, the President shall facilitate 
        price transparency in markets for the sale and trade of 
        credits, with due regard for the public interest, the integrity 
        of those markets, fair competition, and the protection of 
        consumers.
    (e) Waivers.--
            (1) In general.--The President, in consultation with the 
        Secretary and the Administrator of the Environmental Protection 
        Agency, may waive the requirements of subsection (a) in whole 
        or in part on petition by 1 or more States by reducing the 
        national quantity of clean coal-derived fuel required under 
        subsection (a), based on a determination by the President 
        (after public notice and opportunity for comment), that--
                    (A) implementation of the requirement would 
                severely harm the economy or environment of a State, a 
                region, or the United States; or
                    (B) extreme and unusual circumstances exist that 
                prevent distribution of an adequate supply of 
                domestically-produced clean coal-derived fuel to 
                consumers in the United States.
            (2) Petitions for waivers.--The President, in consultation 
        with the Secretary and the Administrator of the Environmental 
        Protection Agency, shall approve or disapprove a State petition 
        for a waiver of the requirements of subsection (a) within 90 
        days after the date on which the petition is received by the 
        President.
            (3) Termination of waivers.--A waiver granted under 
        paragraph (1) shall terminate after 1 year, but may be renewed 
        by the President after consultation with the Secretary and the 
        Administrator of the Environmental Protection Agency.
    (f) Small Refineries.--
            (1) Temporary exemption.--
                    (A) In general.--The requirements of subsection (a) 
                shall not apply to small refineries until calendar year 
                2018.
                    (B) Extension of exemption.--
                            (i) Study by secretary.--Not later than 
                        December 31, 2013, the Secretary shall submit 
                        to the President and Congress a report 
                        describing the results of a study to determine 
                        whether compliance with the requirements of 
                        subsection (a) would impose a disproportionate 
                        economic hardship on small refineries.
                            (ii) Extension of exemption.--In the case 
                        of a small refinery that the Secretary 
                        determines under clause (i) would be subject to 
                        a disproportionate economic hardship if 
                        required to comply with subsection (a), the 
                        President shall extend the exemption under 
                        subparagraph (A) for the small refinery for a 
                        period of not less than 2 additional years.
            (2) Petitions based on disproportionate economic 
        hardship.--
                    (A) Extension of exemption.--A small refinery may 
                at any time petition the President for an extension of 
                the exemption under paragraph (1) for the reason of 
                disproportionate economic hardship.
                    (B) Evaluation of petitions.--In evaluating a 
                petition under subparagraph (A), the President, in 
                consultation with the Secretary, shall consider the 
                findings of the study under paragraph (1)(B) and other 
                economic factors.
                    (C) Deadline for action on petitions.--The 
                President shall act on any petition submitted by a 
                small refinery for a hardship exemption not later than 
                90 days after the date of receipt of the petition.
            (3) Opt-in for small refineries.--A small refinery shall be 
        subject to the requirements of subsection (a) if the small 
        refinery notifies the President that the small refinery waives 
        the exemption under paragraph (1).
    (g) Penalties and Enforcement.--
            (1) Civil penalties.--
                    (A) In general.--Any person that violates a 
                regulation promulgated under subsection (a), or that 
                fails to furnish any information required under such a 
                regulation, shall be liable to the United States for a 
                civil penalty of not more than the total of--
                            (i) $25,000 for each day of the violation; 
                        and
                            (ii) the amount of economic benefit or 
                        savings received by the person resulting from 
                        the violation, as determined by the President.
                    (B) Collection.--Civil penalties under subparagraph 
                (A) shall be assessed by, and collected in a civil 
                action brought by, the Secretary or such other officer 
                of the United States as is designated by the President.
            (2) Injunctive authority.--
                    (A) In general.--The district courts of the United 
                States shall have jurisdiction to--
                            (i) restrain a violation of a regulation 
                        promulgated under subsection (a);
                            (ii) award other appropriate relief; and
                            (iii) compel the furnishing of information 
                        required under the regulation.
                    (B) Actions.--An action to restrain such violations 
                and compel such actions shall be brought by and in the 
                name of the United States.
                    (C) Subpoenas.--In the action, a subpoena for a 
                witness who is required to attend a district court in 
                any district may apply in any other district.
    (h) Effective Date.--Except as otherwise specifically provided in 
this section, this section takes effect on January 1, 2016.

                         Subtitle C--Oil Shale

SEC. 221. REMOVAL OF PROHIBITION ON FINAL REGULATIONS FOR COMMERCIAL 
              LEASING PROGRAM FOR OIL SHALE RESOURCES ON PUBLIC LAND.

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

Subtitle D--Department of Defense Facilitation of Secure Domestic Fuel 
                              Development

SEC. 231. PROCUREMENT AND ACQUISITION OF ALTERNATIVE FUELS.

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

SEC. 232. MULTIYEAR CONTRACT AUTHORITY FOR THE DEPARTMENT OF DEFENSE 
              FOR THE PROCUREMENT OF SYNTHETIC FUELS.

    (a) Multiyear Contracts for the Procurement of Synthetic Fuels 
Authorized.--
            (1) In general.--Chapter 141 of title 10, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 2410r. Multiyear contract authority: purchase of synthetic fuels
    ``(a) Multiyear Contracts Authorized.--The head of an agency may 
enter into contracts for a period not to exceed 25 years for the 
purchase of synthetic fuels.
    ``(b) Definitions.--In this section:
            ``(1) The term `head of an agency' has the meaning given 
        that term in section 2302(1) of this title.
            ``(2) The term `synthetic fuel' means any liquid, gas, or 
        combination thereof that--
                    ``(A) can be used as a substitute for petroleum or 
                natural gas (or any derivative thereof, including 
                chemical feedstocks); and
                    ``(B) is produced by chemical or physical 
                transformation of domestic sources of energy.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 141 of such title is amended by adding at 
        the end the following new item:

``2410r. Multiyear contract authority: purchase of synthetic fuels.''.
    (b) Regulations.--Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall prescribe 
regulations providing that the head of an agency may initiate a 
multiyear contract as authorized by section 2410r of title 10, United 
States Code (as added by subsection (a)), only if the head of the 
agency has determined in writing that--
            (1) there is a reasonable expectation that throughout the 
        contemplated contract period the head of the agency will 
        request funding for the contract at the level required to avoid 
        contract cancellation;
            (2) the technical risks associated with the technologies 
        for the production of synthetic fuel under the contract are not 
        excessive; and
            (3) the contract will contain appropriate pricing 
        mechanisms to minimize risk to the Government from significant 
        changes in market prices for energy.
    (c) Limitation on Use of Authority.--No contract may be entered 
into under the authority in section 2410r of title 10, United States 
Code (as so added), until the regulations required by subsection (b) 
are prescribed.
                                                       Calendar No. 727

110th CONGRESS

  2d Session

                                S. 2973

_______________________________________________________________________

                                 A BILL

  To promote the energy security of the United States, and for other 
                               purposes.

_______________________________________________________________________

                              May 6, 2008

            Read the second time and placed on the calendar