[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 875 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                 S. 875

 To improve energy security of the United States through a 50 percent 
 reduction in the oil intensity of the economy of the United States by 
 2030 and the prudent expansion of secure oil supplies, to be achieved 
 by raising the fuel efficiency of the vehicular transportation fleet, 
  increasing the availability of alternative fuel sources, fostering 
responsible oil exploration and production, and improving international 
 arrangements to secure the global oil supply, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 14, 2007

 Mr. Dorgan (for himself and Mr. Craig) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To improve energy security of the United States through a 50 percent 
 reduction in the oil intensity of the economy of the United States by 
 2030 and the prudent expansion of secure oil supplies, to be achieved 
 by raising the fuel efficiency of the vehicular transportation fleet, 
  increasing the availability of alternative fuel sources, fostering 
responsible oil exploration and production, and improving international 
 arrangements to secure the global oil supply, 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 ``Security and Fuel 
Efficiency Energy Act of 2007'' or the ``SAFE Energy Act of 2007''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
    TITLE I--INCREASED FUEL EFFICIENCY OF THE TRANSPORTATION SECTOR

Sec. 101. Definitions.
Sec. 102. Annual increase in average fuel economy standards.
Sec. 103. Tax credits for alternative motor vehicles and fuel-efficient 
                            motor vehicles.
Sec. 104. Advanced technology motor vehicles manufacturing credit.
Sec. 105. Increase in maximum allowable gross weight for vehicles using 
                            the National System of Interstate and 
                            Defense Highways.
    TITLE II--INCREASED USE OF ALTERNATIVE FUELS AND INFRASTRUCTURE

Sec. 201. Renewable fuel standard.
Sec. 202. Modification of credit for alternative fuel vehicle refueling 
                            property.
Sec. 203. Ethanol-blend fuel infrastructure.
Sec. 204. Requirement to increase percentage of dual fueled 
                            automobiles.
Sec. 205. Emerging biofuels.
Sec. 206. Biodiesel.
Sec. 207. Unconventional fossil fuels.
Sec. 208. Study of incentives for renewable fuels.
TITLE III--DEVELOPMENT AND INVENTORY OF CERTAIN OUTER CONTINENTAL SHELF 
                               RESOURCES

Sec. 301. Definition.
Sec. 302. Authorization of activities and exports involving hydrocarbon 
                            resources by United States persons.
Sec. 303. Travel in connection with authorized hydrocarbon exploration 
                            and extraction activities.
Sec. 304. Moratorium of oil and gas leasing in certain areas of the 
                            Gulf of Mexico.
Sec. 305. Inventory of outer Continental Shelf oil and natural gas 
                            resources off southeastern coast of the 
                            United States.
Sec. 306. Enhanced oil recovery.
                  TITLE IV--MANAGEMENT OF ENERGY RISKS

Sec. 401. Bureau of International Energy Policy.
Sec. 402. Strategic energy infrastructure equipment reserve.

    TITLE I--INCREASED FUEL EFFICIENCY OF THE TRANSPORTATION SECTOR

SEC. 101. DEFINITIONS.

    (a) Definition of Automobile.--Section 32901(a)(3) of title 49, 
United States Code, is amended--
            (1) by striking ``4-wheeled''; and
            (2) by striking ``, and rated at--'' and all that follows 
        and inserting a period.
    (b) Definition of Passenger Automobile.--Section 32901(a)(16) of 
such title is amended by striking ``decides by regulation--'' and all 
that follows through the period and inserting ``determines by 
regulation, to have a significant feature (except 4-wheel drive) 
designed for off-highway operation.''.
    (c) Fuel Economy Information.--Section 32908(a) of such title is 
amended--
            (1) in the subsection header, by striking ``Definitions'' 
        and inserting ``Definition''; and
            (2) by striking ``section--'' and all that follows through 
        ``(2)'' and inserting ``section, the term''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2010, and shall apply to automobiles manufactured 
for model year 2012 and for each subsequent model year.

SEC. 102. ANNUAL INCREASE IN AVERAGE FUEL ECONOMY STANDARDS.

    (a) Fuel Efficiency Standards.--
            (1) In general.--Section 32902 of title 49, United States 
        Code, is amended by striking subsections (a) through (c) and 
        inserting the following:
    ``(a) In General.--Not later than 18 months before the beginning of 
each model year beginning with model year 2012, the Secretary of 
Transportation, by regulation, shall prescribe average fuel economy 
standards for automobiles manufactured by a manufacturer for that model 
year in accordance with subsection (b). The Secretary of Transportation 
shall prescribe separate average fuel economy standards for different 
classes of automobiles. The Secretary shall establish average fuel 
economy standards for medium-duty trucks that are consistent with the 
projected benefits of hybridization. In this section, the term `medium-
duty truck' means a truck (as defined in section 30127) with a gross 
vehicle weight between 10,000 and 26,000 pounds.
    ``(b) Annual Increases in Fuel Economy Standards.--
            ``(1) For model year 2012.--For model year 2012, the 
        average fuel economy standard for each class of automobiles 
        shall be the average combined highway and city miles per gallon 
        performance of all automobiles within that class of automobiles 
        in 2011 (rounded to the nearest \1/10\ mile per gallon).
            ``(2) For model years after model year 2012.--For each 
        model year beginning with model year 2013 and ending with model 
        year 2030, the average fuel economy attained by the fleet of 
        automobiles manufactured or sold in the United States shall be 
        at least 4 percent greater than the average fuel economy 
        standard for the fleet in the previous model year (rounded to 
        the nearest \1/10\ mile per gallon).
    ``(c) Amending Fuel Economy Standards.--
            ``(1) In general.--Notwithstanding subsections (a) and (b), 
        the Secretary of Transportation may prescribe an average fuel 
        economy standard for a class of automobiles in a model year 
        that is lower than the standard required under subsection (b) 
        if the Secretary of Transportation, in consultation with the 
        National Academy of Sciences, determines that the average fuel 
        economy standard prescribed in accordance with subsections (a) 
        and (b) for that class of automobiles in that model year--
                    ``(A) is technologically not achievable;
                    ``(B) cannot be achieved without materially 
                reducing the overall safety of automobiles manufactured 
                or sold in the United States and no offsetting safety 
                improvements can be practicably implemented for that 
                model year; or
                    ``(C) is shown not to be cost effective.
            ``(2) Maximum standard.--Any average fuel economy standard 
        prescribed for a class of automobiles in a model year under 
        paragraph (1) shall be the maximum standard that--
                    ``(A) is technologically achievable;
                    ``(B) can be achieved without materially reducing 
                the overall safety of automobiles manufactured or sold 
                in the United States; and
                    ``(C) is cost effective.
            ``(3) Considerations in determination of cost 
        effectiveness.--In determining cost effectiveness under 
        paragraph (1)(C), the Secretary of Transportation shall take 
        into account the total value to the United States of reduced 
        petroleum use, including the value of reducing external costs 
        of petroleum use, using a value for such costs equal to 50 
        percent of the value of 1 gallon of gasoline saved or the 
        amount determined in an analysis of the external costs of 
        petroleum use that considers--
                    ``(A) value to consumers;
                    ``(B) economic security;
                    ``(C) national security;
                    ``(D) foreign policy;
                    ``(E) the impact of oil use--
                            ``(i) on sustained cartel rents paid to 
                        foreign suppliers;
                            ``(ii) on long-run potential gross domestic 
                        product due to higher normal-market oil price 
                        levels, including inflationary impacts;
                            ``(iii) on import costs, wealth transfers, 
                        and potential gross domestic product due to 
                        increased trade imbalances;
                            ``(iv) on import costs and wealth transfers 
                        during oil shocks;
                            ``(v) on macroeconomic dislocation and 
                        adjustment costs during oil shocks;
                            ``(vi) on the cost of existing energy 
                        security policies, including the management of 
                        the Strategic Petroleum Reserve;
                            ``(vii) on the timing and severity of the 
                        oil peaking problem;
                            ``(viii) on the risk, probability, size, 
                        and duration of oil supply disruptions;
                            ``(ix) on the strategic behavior of the 
                        Organization of the Petroleum Exporting 
                        Countries and long-run oil pricing;
                            ``(x) on the short term elasticity of 
                        energy demand and the magnitude of price 
                        increases resulting from a supply shock;
                            ``(xi) on oil imports, military costs, and 
                        related security costs, including intelligence, 
                        homeland security, sea lane security and 
                        infrastructure, and other military activities;
                            ``(xii) on oil imports, diplomatic and 
                        foreign policy flexibility, and connections to 
                        geopolitical strife, terrorism, and 
                        international development activities;
                            ``(xiii) all relevant environmental hazards 
                        under the jurisdiction of the Environmental 
                        Protection Agency; and
                            ``(xiv) on well-to-wheels urban and local 
                        air emissions of pollutants and their 
                        uninternalized costs;
                    ``(F) the impact of the oil or energy intensity of 
                the United States economy on the sensitivity of the 
                economy to oil price changes, including the magnitude 
                of gross domestic product losses in response to short 
                term price shocks or long term price increases;
                    ``(G) the impact of United States payments for oil 
                imports on political, economic, and military 
                developments in unstable or unfriendly oil-exporting 
                countries;
                    ``(H) the uninternalized costs of pipeline and 
                storage oil seepage, and for risk of oil spills from 
                production, handling, and transport, and related 
                landscape damage; and
                    ``(I) additional relevant factors, as determined by 
                the Secretary.
            ``(4) Minimum valuation.--When considering the value to 
        consumers of a gallon of gasoline saved, the Secretary of 
        Transportation may not use a value less than the greatest of--
                    ``(A) the average national cost of a gallon of 
                gasoline sold in the United States during the 12-month 
                period ending on the date on which the new fuel economy 
                standard is proposed;
                    ``(B) the most recent weekly estimate by the Energy 
                Information Administration of the Department of Energy 
                of the average national cost of a gallon of gasoline 
                (all grades) sold in the United States; or
                    ``(C) the gasoline prices projected by the Energy 
                Information Administration for the 20-year period 
                beginning in the year following the year in which the 
                standards are established.''.
            (2) Conforming amendments.--Title 49, United States Code, 
        is amended--
                    (A) in section 32902--
                            (i) in subsection (d) by striking 
                        ``subsection (b) or (c) of this section'' and 
                        inserting ``subsection (a), (b), or (c)'';
                            (ii) by striking subsection (f);
                            (iii) in subsection (g)--
                                    (I) by striking ``subsection (a) or 
                                (d)'' and inserting ``this section''; 
                                and
                                    (II) by striking ``(and submit the 
                                amendment to Congress when required 
                                under subsection (c)(2) of this 
                                section)''; and
                            (iv) in subsection (h) by striking 
                        ``subsections (c), (f), and (g) of this 
                        section'' and inserting ``subsections (c) and 
                        (g)'';
                    (B) in section 32903--
                            (i) by striking ``section 32902(b)-(d) of 
                        this title'' each place it occurs and inserting 
                        ``subsections (a) through (d) of section 
                        32902''; and
                            (ii) in subsection (e), by striking 
                        ``section 32902(a) of this title'' and 
                        inserting ``subsections (a) through (d) of 
                        section 32902''; and
                    (C) in section 32904--
                            (i) in subsection (a)--
                                    (I) by striking ``subject to--'' 
                                and all that follows through ``(B) 
                                section 32902(a)-(d) of this title'' 
                                and inserting ``subject to subsections 
                                (a) through (d) of section 32902''; and
                                    (II) by redesignating clauses (i) 
                                and (ii) as subparagraphs (A) and (B), 
                                respectively;
                            (ii) by striking subsection (b); and
                            (iii) by redesignating subsections (c), 
                        (d), and (e) as subsections (b), (c), and (d), 
                        respectively.
    (b) Repeal of Credit for Dual Fueled Automobiles.--
            (1) In general.--Section 32905 of title 49, United States 
        Code, is amended--
                    (A) by amending subsection (b) to read as follows:
    ``(b) Dual Fueled Automobiles.--The Administrator of the 
Environmental Protection Agency shall measure the fuel economy for any 
model of dual fueled automobile manufactured in model year 2012 and any 
model year thereafter, in accordance with section 32904.''; and
                    (B) by amending subsection (d) to read as follows:
    ``(d) Gaseous Fuel Dual Fueled Automobiles.--The Administrator of 
the Environmental Protection Agency shall measure the fuel economy for 
any model of gaseous fuel dual fueled automobile manufactured in model 
year 2012 and any model year thereafter, in accordance with section 
32904.''.
            (2) Conforming amendments.--Such section 32905 is further 
        amended--
                    (A) by repealing subsection (f); and
                    (B) redesignating subsections (g) and (h) as 
                subsections (f) and (g), respectively.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2010.

SEC. 103. TAX CREDITS FOR ALTERNATIVE MOTOR VEHICLES AND FUEL-EFFICIENT 
              MOTOR VEHICLES.

    (a) Modifications to Alternative Motor Vehicle Credit.--
            (1) Elimination of limitation on number of new qualified 
        hybrid and advanced lean burn technology vehicles eligible for 
        full alternative motor vehicle tax credit.--
                    (A) In general.--Section 30B of the Internal 
                Revenue Code of 1986 is amended--
                            (i) by striking subsection (f); and
                            (ii) by redesignating subsections (g) 
                        through (j), as amended by subsection (a), as 
                        subsections (f) through (i), respectively.
                    (B) Conforming amendments.--
                            (i) Paragraphs (4) and (6) of section 
                        30B(g) of such Code, as redesignated by 
                        paragraph (1)(B), are each amended by striking 
                        ``(determined without regard to subsection 
                        (g))'' and inserting ``(determined without 
                        regard to subsection (f))''.
                            (ii) Section 38(b)(25) of such Code is 
                        amended by striking ``section 30B(g)(1)'' and 
                        inserting ``section 30B(f)(1)''.
                            (iii) Section 55(c)(2) of such Code is 
                        amended by striking ``section 30B(g)(2)'' and 
                        inserting ``section 30B(f)(2)''.
                            (iv) Section 1016(a)(36) of such Code is 
                        amended by striking ``section 30B(h)(4)'' and 
                        inserting ``section 30B(g)(4)''.
                            (v) Section 6501(m) of such Code is amended 
                        by striking ``section 30B(h)(9)'' and inserting 
                        ``section 30B(g)(9)''.
                    (C) Effective date.--The amendments made by this 
                subsection shall apply to property placed in service 
                after December 31, 2005, in taxable years ending after 
                such date.
            (2) Extension of new qualified hybrid motor vehicle credit 
        for vehicles over 8,500 pounds.--Paragraph (3) of section 
        30B(i), as redesignated by subsection (a)(1)(B), is amended by 
        striking ``2009'' and inserting ``2011''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to vehicles placed in service after the date of the 
        enactment of this Act.
    (b) Credit for New Qualified Fuel-Efficient Vehicles Produced After 
2010.--
            (1) In general.--Subpart B of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        adding at the end the following new section:

``SEC. 30D. NEW QUALIFIED FUEL-EFFICIENT MOTOR VEHICLE CREDIT.

    ``(a) In General.--There shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an amount equal to the 
amount determined under subsection (b) with respect to each new 
qualified fuel-efficient motor vehicle placed in service by the 
taxpayer during the taxable year.
    ``(b) Credit Amount.--
            ``(1) Fuel economy.--
                    ``(A) In general.--The credit amount determined 
                under this paragraph shall be determined in accordance 
                with the following table:


------------------------------------------------------------------------
  ``In the case of a vehicle which achieves a fuel economy
 (expressed as a percentage of the 2012 model year average    The credit
                fuel economy standard) of--                  amount is--
------------------------------------------------------------------------
At least 125 percent but less than 150 percent.............         $400
At least 150 percent but less than 175 percent.............         $800
At least 175 percent but less than 200 percent.............       $1,200
At least 200 percent but less than 225 percent.............       $1,600
At least 220 percent but less than 250 percent.............       $2,000
At least 250 percent.......................................      $2,400.
------------------------------------------------------------------------

                    ``(B) 2012 model year average fuel economy 
                standard.--For purposes of subparagraph (A), the 2012 
                model year average fuel economy standard with respect 
                to a vehicle shall be the average fuel economy standard 
                (determined on a gasoline gallon equivalent basis) for 
                such model year, as prescribed by the Secretary of 
                Transportation under section 32902 of title 49, United 
                States Code, with respect to the class to which such 
                vehicle belongs.
            ``(2) Conservation credit.--The amount determined under 
        paragraph (1) with respect to a new qualified fuel-efficient 
        motor vehicle shall be increased by the conservation credit 
        amount determined in accordance with the following table:


------------------------------------------------------------------------
                                                                 The
 ``In the case of a vehicle which achieves a lifetime fuel  conservation
      savings expressed in gallons of gasoline) of--           credit
                                                             amount is--
------------------------------------------------------------------------
At least 1,200 but less than 1,800........................          $250
At least 1,800 but less than 2,400........................          $500
At least 2,400 but less than 3,000........................          $750
At least 3,000............................................       $1,000.
------------------------------------------------------------------------

    ``(c) New Qualified Fuel-Efficient Motor Vehicle.--For purposes of 
this section, the term `new qualified fuel-efficient motor vehicle' 
means a passenger automobile or a light truck--
            ``(1) described in subsections (c)(3), (d)(3), or (e)(3) of 
        section 30B,
            ``(2) which has received a certificate of conformity under 
        the Clean Air Act and meets or exceeds the equivalent 
        qualifying California low emission vehicle standard under 
        section 243(e)(2) of the Clean Air Act for that make and model 
        year, and
                    ``(A) in the case of a vehicle having a gross 
                vehicle weight rating of 6,000 pounds or less, the Bin 
                5 Tier II emission standard established in regulations 
                prescribed by the Administrator of the Environmental 
                Protection Agency under section 202(i) of the Clean Air 
                Act for that make and model year vehicle, and
                    ``(B) in the case of a vehicle having a gross 
                vehicle weight rating of more than 6,000 pounds but not 
                more than 8,500 pounds, the Bin 8 Tier II emission 
                standard which is so established,
            ``(3) the original use of which commences with the taxpayer 
        after December 31, 2010, and
            ``(4) which is acquired for use or lease by the taxpayer 
        and not for resale.
    ``(d) Other Definitions.--For purposes of this section--
            ``(1) Lifetime fuel savings.--The term `lifetime fuel 
        savings' means, in the case of any new qualified fuel-efficient 
        motor vehicle, an amount equal to the excess (if any) of--
                    ``(A) 120,000 divided by the 2012 model year 
                average fuel economy standard for the vehicle class, 
                over
                    ``(B) 120,000 divided by the fuel economy for such 
                vehicle.
            ``(2) Motor vehicle.--The term `motor vehicle' has the 
        meaning given such term by section 30(c)(2).
            ``(3) Fuel economy.--The fuel economy with respect to any 
        vehicle shall be measured in a manner which is substantially 
        similar to the manner fuel economy is measured in accordance 
        with procedures under part 600 of subchapter Q of chapter I of 
        title 40, Code of Federal Regulations, as in effect on the date 
        of the enactment of this section.
            ``(4) Other terms.--The terms `automobile', ``passenger 
        automobile'', ``medium duty passenger vehicle'', ``light 
        truck'', and `manufacturer' have the meanings given such terms 
        in regulations prescribed by the Administrator of the 
        Environmental Protection Agency for purposes of the 
        administration of title II of the Clean Air Act (42 U.S.C. 7521 
        et seq.).
    ``(e) Special Rules.--
            ``(1) Reduction in basis.--For purposes of this subtitle, 
        the basis of any property for which a credit is allowable under 
        subsection (a) shall be reduced by the amount of such credit so 
        allowed.
            ``(2) No double benefit.--
                    ``(A) Coordination with other vehicle credits.--No 
                credit shall be allowed under subsection (a) with 
                respect to any new qualified fuel-efficient motor 
                vehicle for any taxable year if a credit is allowed 
                with respect to such motor vehicle for such taxable 
                year under section 30 or 30B.
                    ``(B) Other tax benefits.--The amount of any 
                deduction or credit (other than the credit allowable 
                under this section and any credit described in 
                subparagraph (A)) allowable under this chapter with 
                respect to any new qualified fuel-efficient motor 
                vehicle shall be reduced by the amount of credit 
                allowed under subsection (a) for such motor vehicle for 
                such taxable year.
            ``(3) Property used outside the united states, etc., not 
        qualified.--No credit shall be allowable under subsection (a) 
        with respect to any property referred to in section 50(b)(1) or 
        with respect to the portion of the cost of any property taken 
        into account under section 179.
            ``(4) Election not to take credit.--No credit shall be 
        allowed under subsection (a) for any vehicle if the taxpayer 
        elects not to have this section apply to such vehicle.
    ``(f) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) that is attributable to property of a 
        character subject to an allowance for depreciation shall be 
        treated as a credit listed in section 38(b) for such taxable 
        year (and not allowed under subsection (a)).
            ``(2) Personal credit.--The credit allowed under subsection 
        (a) (after the application of paragraph (1)) for any taxable 
        year shall not exceed the excess (if any) of--
                    ``(A) the regular tax liability (as defined in 
                section 26(b)) reduced by the sum of the credits 
                allowable under subpart A and sections 27 and 30, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
    ``(g) Regulations.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall promulgate such regulations as necessary to 
        carry out the provisions of this section.
            ``(2) Coordination in prescription of certain 
        regulations.--The Secretary of the Treasury, in coordination 
        with the Secretary of Transportation and the Administrator of 
        the Environmental Protection Agency, shall prescribe such 
        regulations as necessary to determine whether a motor vehicle 
        meets the requirements to be eligible for a credit under this 
        section.''.
            (2) Conforming amendments.--
                    (A) Section 1016(a) of the Internal Revenue Code of 
                1986 is amended by striking ``and'' at the end of 
                paragraph (36), by striking the period at the end of 
                paragraph (37) and inserting ``, and'', and by adding 
                at the end the following new paragraph:
            ``(38) to the extent provided in section 30D(e)(1).''.
                    (B) Section 6501(m) of such Code is amended by 
                inserting ``30D(e)(4),'' after ``30C(e)(5),''.
                    (C) The table of sections for subpart B of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                adding at the end the following new item:

``Sec. 30D. New qualified fuel-efficient motor vehicle credit.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to vehicles placed in service after December 31, 
        2010.

SEC. 104. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to foreign tax credit, 
etc.), as amended by this Act, is amended by adding at the end the 
following new section:

``SEC. 30E. ADVANCED TECHNOLOGY MOTOR VEHICLES MANUFACTURING CREDIT.

    ``(a) Credit Allowed.--There shall be allowed as a credit against 
the tax imposed by this chapter for the taxable year an amount equal to 
35 percent of so much of the qualified investment of an eligible 
taxpayer for such taxable year as does not exceed $75,000,000.
    ``(b) Qualified Investment.--For purposes of this section--
            ``(1) In general.--The qualified investment for any taxable 
        year is equal to the incremental costs incurred during such 
        taxable year--
                    ``(A) to re-equip, expand, or establish any 
                manufacturing facility in the United States of the 
                eligible taxpayer to produce advanced technology motor 
                vehicles or to produce eligible components,
                    ``(B) for engineering integration performed in the 
                United States of such vehicles and components as 
                described in subsection (d),
                    ``(C) for research and development performed in the 
                United States related to advanced technology motor 
                vehicles and eligible components, and
                    ``(D) for employee retraining with respect to the 
                manufacturing of such vehicles or components 
                (determined without regard to wages or salaries of such 
                retrained employees).
            ``(2) Attribution rules.--In the event a facility of the 
        eligible taxpayer produces both advanced technology motor 
        vehicles and conventional motor vehicles, or eligible and non-
        eligible components, only the qualified investment attributable 
        to production of advanced technology motor vehicles and 
        eligible components shall be taken into account.
    ``(c) Advanced Technology Motor Vehicles and Eligible Components.--
For purposes of this section--
            ``(1) Advanced technology motor vehicle.--The term 
        `advanced technology motor vehicle' means--
                    ``(A) any qualified electric vehicle (as defined in 
                section 30(c)(1)),
                    ``(B) any new qualified fuel cell motor vehicle (as 
                defined in section 30B(b)(3)),
                    ``(C) any new advanced lean burn technology motor 
                vehicle (as defined in section 30B(c)(3)),
                    ``(D) any new qualified hybrid motor vehicle (as 
                defined in section 30B(d)(2)(A) and determined without 
                regard to any gross vehicle weight rating),
                    ``(E) any new qualified alternative fuel motor 
                vehicle (as defined in section 30B(e)(4), including any 
                mixed-fuel vehicle (as defined in section 
                30B(e)(5)(B)),
                    ``(F) any other motor vehicle using electric drive 
                transportation technology (as defined in paragraph 
                (3)), and
                    ``(G) any new qualified fuel-efficient motor 
                vehicle (as defined in section 30D(c)).
            ``(2) Eligible components.--The term `eligible component' 
        means any component inherent to any advanced technology motor 
        vehicle, including--
                    ``(A) with respect to any gasoline or diesel-
                electric new qualified hybrid motor vehicle--
                            ``(i) electric motor or generator,
                            ``(ii) power split device,
                            ``(iii) power control unit,
                            ``(iv) power controls,
                            ``(v) integrated starter generator, or
                            ``(vi) battery,
                    ``(B) with respect to any hydraulic new qualified 
                hybrid motor vehicle--
                            ``(i) hydraulic accumulator vessel,
                            ``(ii) hydraulic pump, or
                            ``(iii) hydraulic pump-motor assembly,
                    ``(C) with respect to any new advanced lean burn 
                technology motor vehicle--
                            ``(i) diesel engine,
                            ``(ii) turbocharger,
                            ``(iii) fuel injection system, or
                            ``(iv) after-treatment system, such as a 
                        particle filter or NO<INF>X</INF> absorber, and
                    ``(D) with respect to any advanced technology motor 
                vehicle, any other component submitted for approval by 
                the Secretary.
            ``(3) Electric drive transportation technology.--The term 
        `electric drive transportation technology' means technology 
        used by vehicles that use an electric motor for all or part of 
        their motive power and that may or may not use off-board 
        electricity, such as battery electric vehicles, fuel cell 
        vehicles, engine dominant hybrid electric vehicles, plug-in 
        hybrid electric vehicles, and plug-in hybrid fuel cell 
        vehicles.
    ``(d) Engineering Integration Costs.--For purposes of subsection 
(b)(1)(B), costs for engineering integration are costs incurred prior 
to the market introduction of advanced technology vehicles for 
engineering tasks related to--
            ``(1) establishing functional, structural, and performance 
        requirements for component and subsystems to meet overall 
        vehicle objectives for a specific application,
            ``(2) designing interfaces for components and subsystems 
        with mating systems within a specific vehicle application,
            ``(3) designing cost effective, efficient, and reliable 
        manufacturing processes to produce components and subsystems 
        for a specific vehicle application, and
            ``(4) validating functionality and performance of 
        components and subsystems for a specific vehicle application.
    ``(e) Eligible Taxpayer.--For purposes of this section, the term 
`eligible taxpayer' means any taxpayer if more than 50 percent of its 
gross receipts for the taxable year is derived from the manufacture of 
motor vehicles or any component parts of such vehicles.
    ``(f) Limitation Based on Amount of Tax.--The credit allowed under 
subsection (a) for the taxable year shall not exceed the excess of--
            ``(1) the sum of--
                    ``(A) the regular tax liability (as defined in 
                section 26(b)) for such taxable year, plus
                    ``(B) the tax imposed by section 55 for such 
                taxable year and any prior taxable year beginning after 
                1986 and not taken into account under section 53 for 
                any prior taxable year, over
            ``(2) the sum of the credits allowable under subpart A and 
        sections 27, 30, and 30B for the taxable year.
    ``(g) Reduction in Basis.--For purposes of this subtitle, if a 
credit is allowed under this section for any expenditure with respect 
to any property, the increase in the basis of such property which would 
(but for this paragraph) result from such expenditure shall be reduced 
by the amount of the credit so allowed.
    ``(h) No Double Benefit.--
            ``(1) Coordination with other deductions and credits.--
        Except as provided in paragraph (2), the amount of any 
        deduction or other credit allowable under this chapter for any 
        cost taken into account in determining the amount of the credit 
        under subsection (a) shall be reduced by the amount of such 
        credit attributable to such cost.
            ``(2) Research and development costs.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any amount described in subsection 
                (b)(1)(C) taken into account in determining the amount 
                of the credit under subsection (a) for any taxable year 
                shall not be taken into account for purposes of 
                determining the credit under section 41 for such 
                taxable year.
                    ``(B) Costs taken into account in determining base 
                period research expenses.--Any amounts described in 
                subsection (b)(1)(C) taken into account in determining 
                the amount of the credit under subsection (a) for any 
                taxable year which are qualified research expenses 
                (within the meaning of section 41(b)) shall be taken 
                into account in determining base period research 
                expenses for purposes of applying section 41 to 
                subsequent taxable years.
    ``(i) Business Carryovers Allowed.--If the credit allowable under 
subsection (a) for a taxable year exceeds the limitation under 
subsection (f) for such taxable year, such excess (to the extent of the 
credit allowable with respect to property subject to the allowance for 
depreciation) shall be allowed as a credit carryback and carryforward 
under rules similar to the rules of section 39.
    ``(j) Special Rules.--For purposes of this section, rules similar 
to the rules of section 179A(e)(4) and paragraphs (1) and (2) of 
section 41(f) shall apply
    ``(k) Election Not To Take Credit.--No credit shall be allowed 
under subsection (a) for any property if the taxpayer elects not to 
have this section apply to such property.
    ``(l) Regulations.--The Secretary shall prescribe such regulations 
as necessary to carry out the provisions of this section.
    ``(m) Termination.--This section shall not apply to any qualified 
investment after December 31, 2010.''.
    (b) Conforming Amendments.--
            (1) Section 1016(a) of the Internal Revenue Code of 1986 is 
        amended by striking ``and'' at the end of paragraph (36), by 
        striking the period at the end of paragraph (37) and inserting 
        ``, and'', and by adding at the end the following new 
        paragraph:
            ``(38) to the extent provided in section 30E(g).''.
            (2) Section 6501(m) of such Code is amended by inserting 
        ``30E(k),'' after ``30C(e)(5),''.
            (3) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 30D the following new item:

``Sec. 30E. Advanced technology motor vehicles manufacturing credit.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts incurred in taxable years beginning after December 31, 
2006.

SEC. 105. INCREASE IN MAXIMUM ALLOWABLE GROSS WEIGHT FOR VEHICLES USING 
              THE NATIONAL SYSTEM OF INTERSTATE AND DEFENSE HIGHWAYS.

    (a) Special Rule for Vehicles With a Supplementary Sixth Axle.--Not 
later than 180 days after the Secretary of Transportation makes a 
positive determination under subsection (d), the Secretary of 
Transportation shall promulgate regulations, in accordance with section 
127(a) of title 23, United States Code, that set the maximum allowable 
gross weight for a vehicle using the National System of Interstate and 
Defense Highways at 97,000 pounds for vehicles with a supplementary 
sixth axle.
    (b) Conditions on Regulations.--The regulations promulgated under 
subsection (a)--
            (1) shall ensure that a loaded tractor trailer with a 
        supplementary sixth axle and a gross weight of not more than 
        97,000 pounds that is traveling at 60 miles per hour has a 
        stopping distance of not greater than 355 feet; and
            (2) shall not require a fundamental alteration of the 
        vehicle architecture that is common for use in the 
        transportation of goods as of the day before the date of the 
        enactment of this Act.
    (c) Study.--The Secretary of Transportation shall conduct a study 
that--
            (1) analyzes the safety impacts of allowing significantly 
        longer and heavier vehicles to use the National System of 
        Interstate and Defense Highways than are allowed under 
        regulations in effect as of the day before the date of the 
        enactment of this Act; and
            (2) considers the potential impact on highway safety of 
        applying lower speed limits on such vehicles than the limits in 
        effect on the day before the date of the enactment of this Act.
    (d) Determination.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Transportation shall determine 
whether allowing significantly longer and heavier vehicles to use the 
National System of Interstate and Defense Highways than are allowed as 
of the day before the date of the enactment of this Act would have a 
material impact on highway safety.

    TITLE II--INCREASED USE OF ALTERNATIVE FUELS AND INFRASTRUCTURE

SEC. 201. RENEWABLE FUEL STANDARD.

    Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o) is amended--
            (1) in paragraph (2)(B)--
                    (A) by striking clause (i) and inserting the 
                following:
                            ``(i) Calendar years 2006 through 2020.--
                                    ``(I) Renewable fuel.--For the 
                                purpose of subparagraph (A), subject to 
                                subclause (II), the applicable total 
                                volume for any of calendar years 2006 
                                through 2020 shall be determined in 
                                accordance with the following table:

                                            Applicable total volume of 
                                                         renewable fuel
``Calendar year:                              (in billions of gallons):
        2006...................................................    4.0 
        2007...................................................    4.7 
        2008...................................................    7.1 
        2009...................................................    9.5 
        2010...................................................   12.0 
        2011...................................................   12.6 
        2012...................................................   13.2 
        2013...................................................   13.8 
        2014...................................................   14.4 
        2015...................................................   15.0 
        2016...................................................   18.0 
        2017...................................................   21.0 
        2018...................................................   24.0 
        2019...................................................   27.0 
        2020...................................................   30.0.
                                    ``(II) Cellulosic biomass 
                                ethanol.--For the purpose of paragraph 
                                (1), of the total volume of renewable 
                                fuel required under subclause (I), the 
                                applicable volume for any of calendar 
                                years 2012 through 2020 for cellulosic 
                                biomass ethanol shall be determined in 
                                accordance with the following table:

                                       Applicable volume of cellulosic 
                                                        biomass ethanol
``Calendar year:                              (in billions of gallons):
        2012...................................................   0.25 
        2013...................................................    1.0 
        2014...................................................    3.0 
        2015...................................................    5.0 
        2016...................................................    7.0 
        2017...................................................    9.0 
        2018...................................................   11.0 
        2019...................................................   13.0 
        2020................................................... 15.0'';
                    (B) in clause (ii)--
                            (i) in the clause heading, by striking 
                        ``2013'' and inserting ``2021'';
                            (ii) by striking ``2013'' and inserting 
                        ``2021''; and
                            (iii) by striking ``2012'' and inserting 
                        ``2020'';
                    (C) in clause (iii), by striking ``thereafter--'' 
                and all that follows through ``(II) the'' and inserting 
                ``thereafter, the'';
                    (D) in clause (iv)--
                            (i) by striking ``2013'' and inserting 
                        ``2021''; and
                            (ii) in subclause (II)(bb), by striking 
                        ``2012'' and inserting ``2020'';
            (2) in paragraph (3)--
                    (A) in subparagraph (A), by striking ``2011'' and 
                inserting ``2019''; and
                    (B) in subparagraph (B)(i), by striking ``2012'' 
                and inserting ``2020''; and
            (3) in paragraph (6)(A), by striking ``2012'' and inserting 
        ``2020''.

SEC. 202. MODIFICATION OF CREDIT FOR ALTERNATIVE FUEL VEHICLE REFUELING 
              PROPERTY.

    (a) Increase in Credit Amount.--
            (1) In general.--Subsection (a) of section 30C of the 
        Internal Revenue Code of 1986 (relating to alternative fuel 
        vehicle refueling property credit) is amended by striking ``30 
        percent'' and inserting ``35 percent''.
            (2) Further increase for blender pumps.--
                    (A) In general.--Section 30C(a) of such Code, as 
                amended by paragraph (1), is amended by inserting ``(40 
                percent in the case of any qualified alternative fuel 
                vehicle refueling property which is a blender pump)'' 
                after ``property''.
                    (B) Blender pump.--Section 30C(c) of such Code is 
                amended by adding at the end the following new 
                paragraph:
            ``(3) Blender pump.--The term `blender pump' means any fuel 
        pump which, with respect to any fuel described in paragraph 
        (1)(A)(i)--
                    ``(A) sources ethanol and gasoline products from 
                separate underground storage tanks,
                    ``(B) incorporates the use of inlet valves from 
                such tanks to enable varying amounts of ethanol and 
                gasoline products to be blended within a chamber in the 
                pump, and
                    ``(C) dispenses the various blends of ethanol and 
                gasoline products through separate hoses.''.
    (b) Credit Allowed for Blended Ethanol Other Than E85.--
Subparagraph (A) of section 30C(c)(1) of the Internal Revenue Code of 
1986 (defining qualified alternative fuel vehicle refueling property) 
is amended to read as follows:
                    ``(A) at least--
                            ``(i) 11 percent of the volume of which 
                        consists of ethanol, or
                            ``(ii) 85 percent of the volume of which 
                        consists of one or more of the following: 
                        natural gas, compressed natural gas, liquefied 
                        natural gas, liquified petroleum gas, or 
                        hydrogen, or''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after the date of the enactment of 
this Act.

SEC. 203. ETHANOL-BLEND FUEL INFRASTRUCTURE.

    Section 211(o) of the Clean Air Act (42 U.S.C. 7545(o)) is amended 
by adding at the end the following:
            ``(11) Installation of ethanol-blend fuel pumps by covered 
        owners at stations.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Covered owner.--The term `covered 
                        owner' means any person that, individually or 
                        together with any other person with respect to 
                        which the person has an affiliate relationship 
                        or significant ownership interest, owns 10 or 
                        more retail station outlets, as determined by 
                        the Secretary.
                            ``(ii) Ethanol-blend fuel.--The term 
                        `ethanol-blend fuel' means a blend of gasoline 
                        not more than 85 percent, nor less than 80 
                        percent, of the content of which is derived 
                        from ethanol produced in the United States, as 
                        defined by the Secretary in a manner consistent 
                        with applicable standards of the American 
                        Society for Testing and Materials.
                            ``(iii) Secretary.--The term `Secretary' 
                        means the Secretary of Energy, acting in 
                        consultation with the Administrator and the 
                        Secretary of Agriculture.
                    ``(B) Assessment.--Not later than 5 years after the 
                date of enactment of this paragraph, the Secretary 
                shall make an assessment of the progress made toward 
                the creation of adequate infrastructure for the 
                production and distribution of ethanol-blend fuel 
                (including the creation of adequate qualified 
                alternative fuel vehicle refueling property that is a 
                blender pump).
                    ``(C) Regulations.--If the Secretary determines (in 
                the assessment made under subparagraph (B)) that 
                adequate progress has not been made toward the creation 
                of adequate infrastructure for the production and 
                distribution of ethanol-blend fuel, the Secretary shall 
                promulgate regulations to ensure, to the maximum extent 
                practicable, that each covered owner installs or 
                otherwise makes available 1 or more pumps that dispense 
                ethanol-blend fuel (including any other equipment 
                necessary, such as tanks, to ensure that the pumps 
                function properly) at not less than the applicable 
                percentage of the retail station outlets of the covered 
                owner specified in subparagraph (D).
                    ``(D) Applicable percentages.--For the purpose of 
                subparagraph (C), the applicable percentage of the 
                retail station outlets shall be--
                            ``(i) during the 10-year period beginning 
                        on the date of any determination made under 
                        subparagraph (C), 10 percent; and
                            ``(ii) after the 10-year period described 
                        in clause (i), 20 percent.
                    ``(E) Financial responsibility.--In promulgating 
                regulations under subparagraph (C), the Secretary shall 
                ensure that each covered owner described in that 
                subparagraph assumes full financial responsibility for 
                the costs of installing or otherwise making available 
                the pumps described in that subparagraph and any other 
                equipment necessary (including tanks) to ensure that 
                the pumps function properly.
                    ``(F) Production credits for exceeding ethanol-
                blend fuel pumps installation requirement.--
                            ``(i) Earning and period for applying 
                        credits.--If the percentage of the retail 
                        station outlets of a covered owner at which the 
                        covered owner installs ethanol-blend fuel pumps 
                        in a particular calendar year exceeds the 
                        percentage required under subparagraph (D), the 
                        covered owner shall earn credits under this 
                        paragraph, which may be applied to any of the 3 
                        consecutive calendar years immediately after 
                        the calendar year for which the credits are 
                        earned.
                            ``(ii) Trading credits.--A covered owner 
                        that has earned credits under clause (i) may 
                        sell credits to another covered owner to enable 
                        the purchaser to meet the requirement under 
                        subparagraph (D).''.

SEC. 204. REQUIREMENT TO INCREASE PERCENTAGE OF DUAL FUELED 
              AUTOMOBILES.

    (a) In General.--Section 32902 of title 49, United States Code, is 
amended by inserting after subsection (e) the following:
    ``(f) Requirement for Annual Increase in Duel Fueled Automobiles.--
Each manufacturer shall ensure that the percentage of automobiles 
manufactured by such manufacturer in each of model years 2012 through 
2022 that are dual fueled automobiles is not less than 10 percentage 
points greater than the percentage of automobiles manufactured by such 
manufacturer in the previous model year that are dual fueled 
automobiles.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date specified in section 102(c).

SEC. 205. EMERGING BIOFUELS.

    (a) Establishment of Incentive Program.--The Secretary of Energy 
(referred to in this section as the ``Secretary'') shall establish a 
program under which the Secretary shall provide to eligible entities 
such incentives (including grants, tax credits, loans, and loan 
guarantees) as the Secretary determines to be appropriate for the 
production of cellulosic ethanol and other emerging biofuels derived 
from renewable sources (including municipal solid waste).
    (b) Application.--To be eligible to receive an incentive under this 
section, an eligible entity shall submit to the Secretary an 
application at such time, in such manner, and containing such 
information as the Secretary may require, including--
            (1) a description of the project for which the incentive 
        will be used;
            (2) a description of the use by the eligible entity of the 
        incentive; and
            (3) an estimate of the annual production using the 
        incentive by the eligible entity of cellulosic ethanol or 
        another biofuel, expressed on a per-gallon basis.
    (c) Selection Requirements.--
            (1) Minimum number of incentives.--The Secretary shall 
        provide incentives under this section to not less than 6 
        biorefineries located in different regions of the United 
        States.
            (2) Least-cost incentives.--The Secretary shall provide 
        incentives under this section only to eligible entities the 
        applications of which reflect the least-cost use of the 
        incentives, on a per-gallon basis, with respect to similar 
        projects.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $500,000,000.

SEC. 206. BIODIESEL.

    (a) In General.--Not later than 180 days after the date of 
enactment of this Act, the Secretary of Energy shall submit to Congress 
a report on any research and development challenges inherent in 
increasing to 5 percent the proportion of diesel fuel sold in the 
United States that is biodiesel, as defined in section 757 of the 
Energy Policy Act of 2005 (42 U.S.C. 16105).
    (b) Regulations.--The Administrator of the Environmental Protection 
Agency shall promulgate regulations providing for the uniform labeling 
of biodiesel blends that are certified to meet applicable standards 
published by the American Society for Testing and Materials.

SEC. 207. UNCONVENTIONAL FOSSIL FUELS.

    (a) In General.--The Secretary of Energy shall carry out a 10-year 
carbon capture research and development program to develop carbon 
dioxide capture technologies that can be used in the recovery of liquid 
fuels from oil shale and the production of liquid fuels in coal 
utilization facilities to minimize the emissions of carbon dioxide from 
those processes.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $50,000,000 for the period of fiscal years 2008 through 
        2012; and
            (2) $100,000,000 for the period of fiscal years 2013 
        through 2017.

SEC. 208. STUDY OF INCENTIVES FOR RENEWABLE FUELS.

    (a) Study.--The Secretary of Agriculture (in consultation with the 
Secretary of Energy, the Secretary of the Treasury, the Administrator 
of the Environmental Protection Agency, representatives of the biofuels 
industry, the oil industry, and other interested parties) shall conduct 
a study of the renewable fuels industry and markets in the United 
States, including--
            (1) the costs to produce corn-based and cellulosic-based 
        ethanol and biobutanol, biodiesel, and other emerging biofuels;
            (2) the factors affecting the future market prices for 
        those biofuels, including world oil prices; and
            (3) the level of tax incentives necessary, to the maximum 
        extent practicable, to grow the biofuels industry of the United 
        States to reduce the dependence of the United States on foreign 
        oil during calendar years 2011 through 2030.
    (b) Goals.--The study shall include an analysis of the types and 
advantages and disadvantages of tax incentive options to, to the 
maximum extent practicable--
            (1) limit the overall cost of the tax incentives to the 
        Federal Government;
            (2) encourage expansion of the biofuels industry by 
        ensuring that new plants and recently-built plants can fully 
        amortize the investments in the plants;
            (3) reward energy-efficient and low carbon-emitting 
        technologies;
            (4) ensure that pioneering processes (such as those that 
        convert cellulosic feedstocks like corn stover and switch grass 
        to ethanol) are economically competitive with fossil fuels;
            (5) encourage agricultural producer equity participation in 
        ethanol plants; and
            (6) encourage the development of higher blend markets, such 
        as E-20, E-30, and E-85.
    (c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary of Agriculture shall submit a report that 
describes the results of the study to--
            (1) the Committee on Agriculture, Nutrition, and Forestry 
        of the Senate;
            (2) the Committee on Energy and Natural Resources of the 
        Senate;
            (3) the Committee on Environment and Public Works of the 
        Senate;
            (4) the Committee on Finance of the Senate;
            (5) the Committee on Agriculture of the House of 
        Representatives;
            (6) the Committee on Energy and Commerce of the House of 
        Representatives; and
            (7) the Committee on Ways and Means of the House of 
        Representatives.

TITLE III--DEVELOPMENT AND INVENTORY OF CERTAIN OUTER CONTINENTAL SHELF 
                               RESOURCES

SEC. 301. DEFINITION.

    In this title, the term ``United States person'' means--
            (1) any United States citizen or alien lawfully admitted 
        for permanent residence in the United States; and
            (2) any person other than an individual, if 1 or more 
        individuals described in paragraph (1) own or control at least 
        51 percent of the securities or other equity interest in the 
        person.

SEC. 302. AUTHORIZATION OF ACTIVITIES AND EXPORTS INVOLVING HYDROCARBON 
              RESOURCES BY UNITED STATES PERSONS.

    Notwithstanding any other provision of law (including a 
regulation), United States persons (including agents and affiliates of 
those United States persons) may--
            (1) engage in any transaction necessary for the exploration 
        for and extraction of hydrocarbon resources from any portion of 
        any foreign exclusive economic zone that is contiguous to the 
        exclusive economic zone of the United States; and
            (2) export without license authority all equipment 
        necessary for the exploration for or extraction of hydrocarbon 
        resources described in paragraph (1).

SEC. 303. TRAVEL IN CONNECTION WITH AUTHORIZED HYDROCARBON EXPLORATION 
              AND EXTRACTION ACTIVITIES.

    Section 910 of the Trade Sanctions Reform and Export Enhancement 
Act of 2000 (22 U.S.C. 7209) is amended by inserting after subsection 
(b) the following:
    ``(c) General License Authority for Travel-Related Expenditures by 
Persons Engaging in Hydrocarbon Exploration and Extraction 
Activities.--
            ``(1) In general.--The Secretary of the Treasury shall, 
        authorize under a general license the travel-related 
        transactions listed in section 515.560(c) of title 31, Code of 
        Federal Regulations, for travel to, from or within Cuba in 
        connection with exploration for and the extraction of 
        hydrocarbon resources in any part of a foreign maritime 
        Exclusive Economic Zone that is contiguous to the United 
        States' Exclusive Economic Zone.
            ``(2) Persons authorized.--Persons authorized to travel to 
        Cuba under this section include full-time employees, 
        executives, agents, and consultants of oil and gas producers, 
        distributors, and shippers.''.

SEC. 304. MORATORIUM OF OIL AND GAS LEASING IN CERTAIN AREAS OF THE 
              GULF OF MEXICO.

    (a) In General.--Section 104(a) of the Gulf of Mexico Energy 
Security Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) is 
amended--
            (1) by striking paragraph (1);
            (2) in paragraph (2), by striking ``125 miles'' and 
        inserting ``45 miles'';
            (3) in paragraph (3), by striking ``100 miles'' each place 
        it appears and inserting ``45 miles''; and
            (4) by redesignating paragraphs (2) and (3) as paragraphs 
        (1) and (2), respectively.
    (b) Regulations.--
            (1) In general.--The Secretary of the Interior shall 
        promulgate regulations that establish appropriate environmental 
        safeguards for the exploration and production of oil and 
        natural gas on the outer Continental Shelf.
            (2) Minimum requirements.--At a minimum, the regulations 
        shall include--
                    (A) provisions requiring surety bonds of sufficient 
                value to ensure the mitigation of any foreseeable 
                incident;
                    (B) provisions assigning liability to the 
                leaseholder in the event of an incident causing damage 
                or loss, regardless of the negligence of the 
                leaseholder or lack of negligence;
                    (C) provisions no less stringent than those 
                contained in the Spill Prevention, Control, and 
                Countermeasure regulations promulgated under the Oil 
                Pollution Act of 1990 (33 U.S.C. 2701 et seq.);
                    (D) provisions ensuring that--
                            (i) no facility for the exploration or 
                        production of resources is visible to the 
                        unassisted eye from any shore of any coastal 
                        State; and
                            (ii) the impact of offshore production 
                        facilities on coastal vistas is otherwise 
                        mitigated;
                    (E) provisions to ensure, to the maximum extent 
                practicable, that exploration and production activities 
                will result in no significant adverse effect on fish or 
                wildlife (including habitat), subsistence resources, or 
                the environment; and
                    (F) provisions that will impose seasonal 
                limitations on activity to protect breeding, spawning, 
                and wildlife migration patterns.
    (c) Conforming Amendment.--Section 105 of the Department of the 
Interior, Environment, and Related Agencies Appropriations Act, 2006 
(Public Law 109-54; 119 Stat. 521) (as amended by section 103(d) of the 
Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public 
Law 109-432)) is amended by inserting ``and any other area that the 
Secretary of the Interior may offer for leasing, preleasing, or any 
related activity under section 104 of that Act'' after ``2006)''.

SEC. 305. INVENTORY OF OUTER CONTINENTAL SHELF OIL AND NATURAL GAS 
              RESOURCES OFF SOUTHEASTERN COAST OF THE UNITED STATES.

    (a) In General.--The Secretary of the Interior (referred to in this 
section as the ``Secretary'') may conduct an inventory of oil and 
natural gas resources beneath the waters of the outer Continental Shelf 
(as defined in section 2 of the Outer Continental Shelf Lands Act (43 
U.S.C. 1331)) off of the coast of the States of Virginia, North 
Carolina, South Carolina, or Georgia in accordance with this section.
    (b) Best Available Technology.--In conducting the inventory, the 
Secretary shall use the best technology available to obtain accurate 
resource estimates.
    (c) Request by Governor.--The Secretary may conduct an inventory 
under this section off the coast of a State described in subsection (a) 
only if the Governor of the State requests the inventory.
    (d) Reports.--The Secretary shall submit to Congress and the 
requesting Governor a report on any inventory conducted under this 
section.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.

SEC. 306. ENHANCED OIL RECOVERY.

    Section 354(c)(4)(B) of the Energy Policy Act of 2005 (42 U.S.C. 
15910(c)(4)(B)) is amended--
            (1) in clause (iii), by striking ``and'' at the end;
            (2) in clause (iv), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                            ``(v) are carried out in geologically 
                        challenging fields.''.

                  TITLE IV--MANAGEMENT OF ENERGY RISKS

SEC. 401. BUREAU OF INTERNATIONAL ENERGY POLICY.

    Section 101 of the National Security Act of 1947 (50 U.S.C. 402) is 
amended by adding at the end the following:
            (1) by redesignating subsection (i) (as added by section 
        301 of Public Law 105-292 (112 Stat. 2800)) as subsection (k); 
        and
            (2) by adding at the end the following:
    ``(l) Bureau of International Energy Policy.--
            ``(1) Establishment.--There is established within the 
        National Security Council a Bureau of International Energy.
            ``(2) Duties.--The Bureau shall, in conjunction with the 
        Secretary of Defense, the Secretary of State, and the Secretary 
        of Energy, prepare and submit to Congress an annual energy 
        security report.''.

SEC. 402. STRATEGIC ENERGY INFRASTRUCTURE EQUIPMENT RESERVE.

    (a) Establishment.--The Secretary may establish and operate a 
strategic energy infrastructure equipment reserve.
    (b) Use.--The reserve shall be used and operated for--
            (1) the protection, conservation, maintenance, and testing 
        of strategic energy infrastructure equipment; and
            (2) the provision of strategic energy infrastructure 
        equipment whenever and to the extent that--
                    (A) the Secretary, with the approval of the 
                President, finds that the equipment is needed for 
                energy security purposes; and
                    (B) the provision of the equipment is authorized by 
                a joint resolution of Congress.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.
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