[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3202 Placed on Calendar Senate (PCS)]






                                                       Calendar No. 854
110th CONGRESS
  2d Session
                                S. 3202

 To address record high gas prices at the pump, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 26, 2008

 Mr. McConnell (for himself, Mr. Alexander, Mr. Allard, Mr. Barrasso, 
   Mr. Bennett, Mr. Bond, Mr. Brownback, Mr. Bunning, Mr. Burr, Mr. 
   Chambliss, Mr. Coburn, Mr. Cochran, Mr. Coleman, Mr. Corker, Mr. 
Cornyn, Mr. Craig, Mr. Crapo, Mr. DeMint, Mrs. Dole, Mr. Domenici, Mr. 
Ensign, Mr. Enzi, Mr. Graham, Mr. Grassley, Mr. Gregg, Mr. Hatch, Mrs. 
 Hutchison, Mr. Inhofe, Mr. Isakson, Mr. Kyl, Mr. Lugar, Mr. Martinez, 
Ms. Murkowski, Mr. Roberts, Mr. Sessions, Mr. Shelby, Mr. Specter, Mr. 
Stevens, Mr. Sununu, Mr. Thune, Mr. Vitter, Mr. Voinovich, Mr. Warner, 
and Mr. Wicker) introduced the following bill; which was read the first 
                                  time

                             June 27, 2008

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
 To address record high gas prices at the pump, 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 ``Gas Price 
Reduction Act of 2008''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                     TITLE I--DEEP SEA EXPLORATION

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 amendments.
             TITLE II--WESTERN STATE OIL SHALE EXPLORATION

Sec. 201. Removal of prohibition on final regulations for commercial 
                            leasing program for oil shale resources on 
                            public land.
              TITLE III--PLUG-IN ELECTRIC CARS AND TRUCKS

Sec. 301. Advanced batteries for electric drive vehicles.
                   TITLE IV--ENERGY COMMODITY MARKETS

Sec. 401. Study of international regulation of energy commodity 
                            markets.
Sec. 402. Foreign boards of trade.
Sec. 403. Index traders and swap dealers; disaggregation of index 
                            funds.
Sec. 404. Improved oversight and enforcement.

                     TITLE I--DEEP SEA EXPLORATION

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 Gas Price Reduction 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 the concurrence 
        of the legislature of the 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 the regulations 
                        promulgated under subparagraph (A).
            ``(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 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) 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 AMENDMENTS.

    Sections 104 and 105 of the Department of the Interior, 
Environment, and Related Agencies Appropriations Act, 2008 (Public Law 
110-161; 121 Stat. 2118) are amended by striking ``No funds'' each 
place it appears and inserting ``Except as provided in section 32 of 
the Outer Continental Shelf Lands Act, no funds''.

             TITLE II--WESTERN STATE OIL SHALE EXPLORATION

SEC. 201. 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.

              TITLE III--PLUG-IN ELECTRIC CARS AND TRUCKS

SEC. 301. ADVANCED BATTERIES FOR ELECTRIC DRIVE VEHICLES.

    (a) Definitions.--In this section:
            (1) Advanced battery.--The term ``advanced battery'' means 
        an electrical storage device that is suitable for a vehicle 
        application.
            (2) Engineering integration costs.--The term ``engineering 
        integration costs'' includes the cost of engineering tasks 
        relating to--
                    (A) the incorporation of qualifying components into 
                the design of an advanced battery; and
                    (B) the design of tooling and equipment and the 
                development of manufacturing processes and material for 
                suppliers of production facilities that produce 
                qualifying components or advanced batteries.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Advanced Battery Research and Development.--
            (1) In general.--The Secretary shall--
                    (A) expand and accelerate research and development 
                efforts for advanced batteries; and
                    (B) emphasize lower cost means of producing abuse-
                tolerant advanced batteries with the appropriate 
                balance of power and energy capacity to meet market 
                requirements.
            (2) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $100,000,000 
        for each of fiscal years 2010 through 2014.
    (c) Direct Loan Program.--
            (1) In general.--Subject to the availability of 
        appropriated funds, not later than 1 year after the date of 
        enactment of this Act, the Secretary shall carry out a program 
        to provide a total of not more than $250,000,000 in loans to 
        eligible individuals and entities for not more than 30 percent 
        of the costs of 1 or more of--
                    (A) reequipping a manufacturing facility in the 
                United States to produce advanced batteries;
                    (B) expanding a manufacturing facility in the 
                United States to produce advanced batteries; or
                    (C) establishing a manufacturing facility in the 
                United States to produce advanced batteries.
            (2) Eligibility.--
                    (A) In general.--To be eligible to obtain a loan 
                under this subsection, an individual or entity shall--
                            (i) be financially viable without the 
                        receipt of additional Federal funding 
                        associated with a proposed project under this 
                        subsection;
                            (ii) provide sufficient information to the 
                        Secretary for the Secretary to ensure that the 
                        qualified investment is expended efficiently 
                        and effectively; and
                            (iii) meet such other criteria as may be 
                        established and published by the Secretary.
                    (B) Consideration.--In selecting eligible 
                individuals or entities for loans under this 
                subsection, the Secretary may consider whether the 
                proposed project of an eligible individual or entity 
                under this subsection would--
                            (i) reduce manufacturing time;
                            (ii) reduce manufacturing energy intensity;
                            (iii) reduce negative environmental impacts 
                        or byproducts; or
                            (iv) increase spent battery or component 
                        recycling
            (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 that is 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; 
                        or
                            (ii) 25 years; and
                    (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.
            (4) Period of availability.--A loan under this subsection 
        shall be available for--
                    (A) facilities and equipment placed in service 
                before December 30, 2020; and
                    (B) engineering integration costs incurred during 
                the period beginning on the date of enactment of this 
                Act and ending on December 30, 2020.
            (5) Fees.--The cost of administering a loan made under this 
        subsection shall not exceed $100,000.
            (6) Authorization of appropriations.--There are authorized 
        to be appropriated such sums as are necessary to carry out this 
        subsection for each of fiscal years 2009 through 2013.
    (d) Sense of the Senate on Purchase of Plug-in Electric Drive 
Vehicles.--It is the sense of the Senate that, to the maximum extent 
practicable, the Federal Government should implement policies to 
increase the purchase of plug-in electric drive vehicles by the Federal 
Government.

                   TITLE IV--ENERGY COMMODITY MARKETS

SEC. 401. STUDY OF INTERNATIONAL REGULATION OF ENERGY COMMODITY 
              MARKETS.

    (a) In General.--The Secretary of the Treasury, the Chairman of the 
Board of Governors of the Federal Reserve System, the Chairman of the 
Securities and Exchange Commission, and the Chairman of the Commodity 
Futures Trading Commission shall jointly conduct a study of the 
international regime for regulating the trading of energy commodity 
futures and derivatives.
    (b) Analysis.--The study shall include an analysis of, at a 
minimum--
            (1) key common features and differences among countries in 
        the regulation of energy commodity trading, including with 
        respect to market oversight and enforcement;
            (2) agreements and practices for sharing market and trading 
        data;
            (3) the use of position limits or thresholds to detect and 
        prevent price manipulation, excessive speculation as described 
        in section 4a(a) of the Commodity Exchange Act (7 U.S.C. 6a(a)) 
        or other unfair trading practices;
            (4) practices regarding the identification of commercial 
        and noncommercial trading and the extent of market speculation; 
        and
            (5) agreements and practices for facilitating international 
        cooperation on market oversight, compliance, and enforcement.
    (c) Report.--Not later than 120 days after the date of enactment of 
this Act, the heads of the Federal agencies described in subsection (a) 
shall jointly submit to the appropriate committees of Congress a report 
that--
            (1) describes the results of the study; and
            (2) provides recommendations to improve openness, 
        transparency, and other necessary elements of a properly 
        functioning market.

SEC. 402. FOREIGN BOARDS OF TRADE.

    Section 4 of the Commodity Exchange Act (7 U.S.C. 6) is amended by 
adding at the end the following:
    ``(e) Foreign Boards of Trade.--
            ``(1) In general.--The Commission shall not permit a 
        foreign board of trade's members or other participants located 
        in the United States to enter trades directly into the foreign 
        board of trade's trade matching system with respect to an 
        agreement, contract, or transaction in an energy commodity (as 
        defined by the Commission) that settles against any price, 
        including the daily or final settlement price, of a contract or 
        contracts listed for trading on a registered entity, unless--
                    ``(A) the foreign board of trade makes public daily 
                information on settlement prices, volume, open 
                interest, and opening and closing ranges for the 
                agreement, contract, or transaction that is comparable 
                to the daily trade information published by the 
                registered entity for the contract or contracts against 
                which it settles;
                    ``(B) the foreign board of trade or a foreign 
                futures authority adopts position limitations 
                (including related hedge exemption provisions) or 
                position accountability for speculators for the 
                agreement, contract, or transaction that are comparable 
                to the position limitations (including related hedge 
                exemption provisions) or position accountability 
                adopted by the registered entity for the contract or 
                contracts against which it settles; and
                    ``(C) the foreign board of trade or a foreign 
                futures authority provides such information to the 
                Commission regarding the extent of speculative and non-
                speculative trading in the agreement, contract, or 
                transaction that is comparable to the information the 
                Commission determines is necessary to publish its 
                weekly report of traders (commonly known as the 
                Commitments of Traders report) for the contract or 
                contracts against which it settles.
            ``(2) Existing foreign boards of trade.--Paragraph (1) 
        shall become effective 1 year after the date of enactment of 
        this subsection with respect to any agreement, contract, or 
        transaction in an energy commodity (as defined by the 
        Commission) conducted on a foreign board of trade for which the 
        Commission's staff had granted relief from the requirements of 
        this Act prior to the date of enactment of this subsection.''.

SEC. 403. INDEX TRADERS AND SWAP DEALERS; DISAGGREGATION OF INDEX 
              FUNDS.

    Section 4 of the Commodity Exchange Act (7 U.S.C. 6) (as amended by 
section 3) is amended by adding at the end the following:
    ``(f) Index Traders and Swap Dealers.--
            ``(1) Reporting.--The Commission shall--
                    ``(A) issue a proposed rule regarding routine 
                reporting requirements for index traders and swap 
                dealers (as those terms are defined by the Commission) 
                in energy and agricultural transactions (as those terms 
                are defined by the Commission) within the jurisdiction 
                of the Commission not later than 180 days after the 
                date of enactment of this subsection, and issue a final 
                rule regarding such reporting requirements not later 
                than 270 days after the date of enactment of this 
                subsection; and
                    ``(B) subject to the provisions of section 8, 
                disaggregate and make public monthly information on the 
                positions and value of index funds and other passive, 
                long-only positions in the energy and agricultural 
                futures markets.
            ``(2) Report.--Not later than 90 days after the date of 
        enactment of this subsection, the Commission shall submit to 
        the Committee on Agriculture of the House of Representatives 
        and the Committee on Agriculture, Nutrition, and Forestry of 
        the Senate a report regarding--
                    ``(A) the scope of commodity index trading in the 
                futures markets;
                    ``(B) whether classification of index traders and 
                swap dealers in the futures markets can be improved for 
                regulatory and reporting purposes; and
                    ``(C) whether, based on a review of the trading 
                practices for index traders in the futures markets--
                            ``(i) index trading activity is adversely 
                        impacting the price discovery process in the 
                        futures markets; and
                            ``(ii) different practices and controls 
                        should be required.''.

SEC. 404. IMPROVED OVERSIGHT AND ENFORCEMENT.

    (a) Findings.--The Senate finds that--
            (1) crude oil prices are at record levels and consumers in 
        the United States are paying record prices for gasoline;
            (2) funding for the Commodity Futures Trading Commission 
        has been insufficient to cover the significant growth of the 
        futures markets;
            (3) since the establishment of the Commodity Futures 
        Trading Commission, the volume of trading on futures exchanges 
        has grown 8,000 percent while staffing numbers have decreased 
        12 percent; and
            (4) in today's dynamic market environment, it is essential 
        that the Commodity Futures Trading Commission receive the 
        funding necessary to enforce existing authority to ensure that 
        all commodity markets, including energy markets, are properly 
        monitored for market manipulation.
    (b) Additional Employees.--As soon as practicable after the date of 
enactment of this Act, the Commodity Futures Trading Commission shall 
hire at least 100 additional full-time employees--
            (1) to increase the public transparency of operations in 
        energy futures markets;
            (2) to improve the enforcement in those markets; and
            (3) to carry out such other duties as are prescribed by the 
        Commission.
    (c) Authorization of Appropriations.--In addition to any other 
funds made available to carry out the Commodity Exchange Act (7 U.S.C. 
1 et seq.), there are authorized to be appropriated such sums as are 
necessary to carry out this section for fiscal year 2009.
                                                       Calendar No. 854

110th CONGRESS

  2d Session

                                S. 3202

_______________________________________________________________________

                                 A BILL

 To address record high gas prices at the pump, and for other purposes.

_______________________________________________________________________

                             June 27, 2008

            Read the second time and placed on the calendar