[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2846 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 2846
To increase energy independence and job creation by increasing safe
American energy production, encouraging the development of alternative
and renewable energy, and promoting greater efficiencies and
conservation for a cleaner environment.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 12, 2009
Mr. Boehner (for himself, Mr. Aderholt, Mr. Akin, Mr. Alexander, Mr.
Austria, Mrs. Bachmann, Mr. Bachus, Mr. Barton of Texas, Mrs. Biggert,
Mr. Bishop of Utah, Mrs. Blackburn, Mr. Blunt, Mr. Bonner, Mr.
Boustany, Mr. Brady of Texas, Mr. Broun of Georgia, Mr. Brown of South
Carolina, Mr. Calvert, Mr. Camp, Mr. Cantor, Mrs. Capito, Mr. Cassidy,
Mr. Chaffetz, Mr. Coble, Mr. Cole, Mr. Conaway, Mr. Crenshaw, Mr.
Culberson, Mr. Dreier, Mr. Duncan, Ms. Fallin, Mr. Fleming, Mr. Forbes,
Ms. Foxx, Mr. Franks of Arizona, Mr. Gingrey of Georgia, Mr. Gohmert,
Mr. Goodlatte, Ms. Granger, Mr. Graves, Mr. Hall of Texas, Mr. Harper,
Mr. Hastings of Washington, Mr. Hensarling, Mr. Herger, Mr. Hoekstra,
Mr. Hunter, Mr. Issa, Ms. Jenkins, Mr. Jordan of Ohio, Mr. King of
Iowa, Mr. Kline of Minnesota, Mr. Lamborn, Mr. Latta, Mr. Lee of New
York, Mr. Luetkemeyer, Mrs. Lummis, Mr. Marchant, Mr. McCarthy of
California, Mr. McCaul, Mr. McHenry, Mrs. McMorris Rodgers, Mrs.
Myrick, Mrs. Miller of Michigan, Mr. Neugebauer, Mr. Nunes, Mr. Olson,
Mr. Pence, Mr. Pitts, Mr. Poe of Texas, Mr. Price of Georgia, Mr.
Rehberg, Mr. Roe of Tennessee, Mr. Rogers of Alabama, Mr. Rogers of
Kentucky, Mr. Rooney, Mr. Scalise, Mrs. Schmidt, Mr. Schock, Mr.
Sensenbrenner, Mr. Sessions, Mr. Shadegg, Mr. Shimkus, Mr. Smith of
Texas, Mr. Souder, Mr. Terry, Mr. Thompson of Pennsylvania, Mr. Tiahrt,
Mr. Tiberi, Mr. Turner, Mr. Upton, Mr. Wamp, and Mr. Coffman of
Colorado) introduced the following bill; which was referred to the
Committee on Natural Resources, and in addition to the Committees on
the Judiciary, Ways and Means, Energy and Commerce, Armed Services,
Oversight and Government Reform, and Science and Technology, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To increase energy independence and job creation by increasing safe
American energy production, encouraging the development of alternative
and renewable energy, and promoting greater efficiencies and
conservation for a cleaner environment.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``American Energy
Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--AMERICAN ENERGY
Subtitle A--OCS
Sec. 101. Short title.
Sec. 102. Policy.
Sec. 103. Leasing program considered approved.
Sec. 104. Lease sales.
Sec. 105. Prohibitions on surface occupancy.
Sec. 106. Definitions under the Submerged Lands Act.
Sec. 107. Seaward boundaries of States.
Sec. 108. Exceptions from confirmation and establishment of States'
title, power, and rights.
Sec. 109. Definitions under the Outer Continental Shelf Lands Act.
Sec. 110. Determination of adjacent zones and planning areas.
Sec. 111. Administration of leasing.
Sec. 112. Grant of leases by Secretary.
Sec. 113. Disposition of receipts.
Sec. 114. Reservation of lands and rights.
Sec. 115. Outer Continental Shelf leasing program.
Sec. 116. Coordination with Adjacent States.
Sec. 117. Environmental studies.
Sec. 118. Outer Continental Shelf incompatible use.
Sec. 119. Repurchase of certain leases.
Sec. 120. Offsite environmental mitigation.
Sec. 121. OCS regional headquarters.
Sec. 122. Leases for areas located within 12 nautical miles of
California or Florida.
Sec. 123. Coastal impact assistance.
Sec. 124. Repeal of the Gulf of Mexico Energy Security Act of 2006.
Subtitle B--ANWR
Sec. 141. Short title.
Sec. 142. Definitions.
Sec. 143. Leasing program for lands within the Coastal Plain.
Sec. 144. Lease sales.
Sec. 145. Grant of leases by the Secretary.
Sec. 146. Lease terms and conditions.
Sec. 147. Coastal Plain environmental protection.
Sec. 148. Expedited judicial review.
Sec. 149. Federal and State distribution of revenues.
Sec. 150. Rights-of-way across the Coastal Plain.
Sec. 151. Conveyance.
Sec. 152. Local government impact aid and community service assistance.
Subtitle C--Oil Shale
Sec. 161. Oil shale.
Subtitle D--Refinery Permit Process Schedule
Sec. 171. Short title.
Sec. 172. Definitions.
Sec. 173. State assistance.
Sec. 174. Refinery process coordination and procedures.
Sec. 175. Designation of closed military bases.
Sec. 176. Savings clause.
Sec. 177. Refinery revitalization repeal.
TITLE II--CONSERVATION AND EFFICIENCY
Subtitle A--Tax Incentives for Fuel Efficiency
Sec. 201. Extension of credit for alternative fuel vehicles.
Sec. 202. Extension of alternative fuel vehicle refueling property
credit.
Sec. 203. Extension of credit for new qualified plug-in electric drive
motor vehicles.
Subtitle B--Tapping America's Ingenuity and Creativity
Sec. 211. Definitions.
Sec. 212. Statement of policy.
Sec. 213. Prize authority.
Sec. 214. Eligibility.
Sec. 215. Intellectual property.
Sec. 216. Waiver of liability.
Sec. 217. Authorization of appropriations.
Sec. 218. Next generation automobile prize program.
Sec. 219. Advanced battery manufacturing incentive program.
Subtitle C--Home and Business Tax Incentives
Sec. 221. Extension of credit for energy efficient appliances.
Sec. 222. Extension of credit for nonbusiness energy property.
Sec. 223. Extension of credit for residential energy efficient
property.
Sec. 224. Extension of new energy efficient home credit.
Sec. 225. Extension of energy efficient commercial buildings deduction.
Sec. 226. Extension of special rule to implement FERC and State
electric restructuring policy.
Sec. 227. Home energy audits.
Sec. 228. Accelerated recovery period for depreciation of smart meters.
TITLE III--NEW AND EXPANDING TECHNOLOGIES
Subtitle A--Alternative Fuels
Sec. 301. Repeal.
Sec. 302. Government auction of long-term put option contracts on coal-
to-liquid fuel produced by qualified coal-
to-liquid facilities.
Sec. 303. Standby loans for qualifying coal-to-liquids projects.
Subtitle B--Tax Provisions
Sec. 311. Extension of renewable electricity, refined coal, and Indian
coal production credit.
Sec. 312. Extension of energy credit.
Sec. 313. Extension and modification of credit for clean renewable
energy bonds.
Sec. 314. Extension of credits for biodiesel and renewable diesel.
Subtitle C--American Renewable and Alternative Energy Trust Fund
Sec. 321. American Renewable and Alternative Energy Trust Fund.
TITLE IV--NUCLEAR
Sec. 401. Streamline the regulatory process.
Sec. 402. Increase the supply of uranium.
Sec. 403. Recycle and safely store spent nuclear fuel.
Sec. 404. Confidence in availability of waste disposal.
Sec. 405. Preferential treatment for certain nuclear reactors and
related articles.
Sec. 406. National Nuclear Energy Council.
Sec. 407. Expansion of energy investment tax credit to include nuclear
and clean-coal equipment.
TITLE V--ENVIRONMENTAL REVIEW; GREENHOUSE GASES
Sec. 501. Environmental review for renewable energy projects.
Sec. 502. Greenhouse gas regulation under Clean Air Act.
Sec. 503. Prohibition of consideration of impact of greenhouse gas.
TITLE VI--LEGAL REFORM
Sec. 601. Findings.
Sec. 602. Exclusive jurisdiction over causes and claims relating to
covered energy projects.
Sec. 603. Time for filing complaint.
Sec. 604. District court for the District of Columbia deadline.
Sec. 605. Ability to seek appellate review.
Sec. 606. Deadline for appeal to the Supreme Court.
Sec. 607. Limitation on scope of review and relief.
Sec. 608. Legal fees.
Sec. 609. Exclusion.
Sec. 610. Covered energy project defined.
TITLE I--AMERICAN ENERGY
Subtitle A--OCS
SEC. 101. SHORT TITLE.
This subtitle may be cited as the ``Deep Ocean Energy Resources Act
of 2009''.
SEC. 102. POLICY.
It is the policy of the United States that--
(1) the United States is blessed with abundant energy
resources on the outer Continental Shelf and has developed a
comprehensive framework of environmental laws and regulations
and fostered the development of state-of-the-art technology
that allows for the responsible development of these resources
for the benefit of its citizenry;
(2) Adjacent States are required by the circumstances to
commit significant resources in support of exploration,
development, and production activities for mineral resources on
the outer Continental Shelf, and it is fair and proper for a
portion of the receipts from such activities to be shared with
Adjacent States and their local coastal governments; and
(3) among other bodies of inland waters, the Great Lakes,
Long Island Sound, Delaware Bay, Chesapeake Bay, Albemarle
Sound, San Francisco Bay, and Puget Sound are not part of the
outer Continental Shelf, and are not subject to leasing by the
Federal Government for the exploration, development, and
production of any mineral resources that might lie beneath
them.
SEC. 103. LEASING PROGRAM CONSIDERED APPROVED.
(a) In General.--The Draft Proposed Outer Continental Shelf Oil and
Gas Leasing Program 2010-2015 released by the Secretary of the Interior
(referred to in this section as the ``Secretary'') under section 18 of
the Outer Continental Shelf Lands Act (43 U.S.C. 1344) is considered to
have been approved by the Secretary as a final oil and gas leasing
program under that section, and is considered to be in full compliance
with and in accordance with all requirements of the Outer Continental
Shelf Lands Act, National Environmental Policy Act, Endangered Species
Act, Clean Air Act, Marine Mammals Protection Act, the Oil Pollution
Control Act, and all other applicable laws.
(b) Final Environmental Impact Statement.--The Secretary is
considered to have issued a legally sufficient final environmental
impact statement for the program described in subsection (a) in
accordance with all requirements under section 102(2)(C) of the
National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)), and
all other applicable laws.
SEC. 104. LEASE SALES.
(a) Outer Continental Shelf.--
(1) In general.--Except as provided in paragraph (2), not
later than 30 days after the date of enactment of this Act and
every 270 days thereafter, the Secretary of the Interior
(referred to in this section as the ``Secretary'') shall
conduct a lease sale in each outer Continental Shelf planning
region for which the Secretary determines that there is a
commercial interest in purchasing Federal oil and gas leases
for production on the outer Continental Shelf.
(2) Subsequent determinations and sales.--If the Secretary
determines that there is not a commercial interest in
purchasing Federal oil and gas leases for production on the
outer Continental Shelf in a planning area under this
subsection, not later than 2 years after the date of enactment
of the determination and every 2 years thereafter, the
Secretary shall--
(A) solicit if there is commercial interest in
purchasing Federal oil and gas leases for production on
the outer Continental Shelf in the planning area; and
(B) if the Secretary determines that there is a
commercial interest described in subparagraph (A),
conduct a lease sale in the planning area.
(b) Renewable Energy and Mariculture.--The Secretary may conduct
commercial lease sales of resources--
(1) to produce renewable energy (as defined in section
203(b) of the Energy Policy Act of 2005 (42 U.S.C. 15852(b)));
or
(2) to cultivate marine organisms in the natural habitat of
the organisms.
SEC. 105. PROHIBITIONS ON SURFACE OCCUPANCY.
(a) Regulations.--
(1) In general.--The Secretary of the Interior shall
promulgate regulations that establish management of the surface
occupancy of the portion of the Outer Continental Shelf near
the coastline to the effect that--
(A) the coastal State shall have sole authority to
restrict or allow surface facilities above the
waterline for the purpose of production of oil or gas
resources in any area that is within 12 nautical miles
seaward from the coastline of any coastal State, in any
area of the Outer Continental Shelf that has not been
made available for oil and gas leasing after January 1,
2001, in a final notice of sale;
(B) unless permanent surface occupancy is
authorized by the coastal State, only sub-surface
production facilities may be installed for areas that
are located beyond 12 nautical miles but not more than
25 nautical miles seaward from the coastline of any
coastal State, in any area of the Outer Continental
Shelf that has not been made available for oil and gas
leasing after January 1, 2001, in a final notice of
sale; and
(C) new offshore production facilities are
encouraged and the impacts on coastal vistas are
minimized, to the extent practical; and
(D) onshore facilities that facilitate the
development and production of the resources of the
Outer Continental Shelf within 12 nautical miles
seaward of the coastline are allowed.
(2) Temporary activities not affected.--Nothing in these
regulations shall restrict temporary surface activities related
to operations associated with Outer Continental Shelf oil and
gas leases.
SEC. 106. DEFINITIONS UNDER THE SUBMERGED LANDS ACT.
Section 2 of the Submerged Lands Act (43 U.S.C. 1301) is amended--
(1) in subparagraph (2) of paragraph (a) by striking all
after ``seaward to a line'' and inserting ``twelve nautical
miles distant from the coast line of such State;'';
(2) by striking out paragraph (b) and redesignating the
subsequent paragraphs in order as paragraphs (b) through (g);
(3) by striking the period at the end of paragraph (g) (as
so redesignated) and inserting ``; and'';
(4) by adding the following: ``(i) The term `Secretary'
means the Secretary of the Interior.''; and
(5) by defining ``State'' as it is defined in section 2(r)
of the Outer Continental Shelf Lands Act (43 U.S.C. 1331(r)).
SEC. 107. SEAWARD BOUNDARIES OF STATES.
Section 4 of the Submerged Lands Act (43 U.S.C. 1312) is amended--
(1) in the first sentence by striking ``original'', and in
the same sentence by striking ``three geographical'' and
inserting ``twelve nautical''; and
(2) by striking all after the first sentence and inserting
the following: ``Extension and delineation of lateral offshore
State boundaries under the provisions of this Act shall follow
the lines used to determine the Adjacent Zones of coastal
States under the Outer Continental Shelf Lands Act to the
extent such lines extend twelve nautical miles for the nearest
coastline.''
SEC. 108. EXCEPTIONS FROM CONFIRMATION AND ESTABLISHMENT OF STATES'
TITLE, POWER, AND RIGHTS.
Section 5 of the Submerged Lands Act (43 U.S.C. 1313) is amended--
(1) by redesignating paragraphs (a) through (c) in order as
paragraphs (1) through (3);
(2) by inserting ``(a)'' before ``There is excepted''; and
(3) by inserting at the end the following:
``(b) Exception of Oil and Gas Mineral Rights.--There is excepted
from the operation of sections 3 and 4 all of the oil and gas mineral
rights for lands beneath the navigable waters that are located within
the expanded offshore State seaward boundaries established under this
Act. These oil and gas mineral rights shall remain Federal property and
shall be considered to be part of the Federal outer Continental Shelf
for purposes of the Outer Continental Shelf Lands Act (43 U.S.C. 1331
et seq.) and subject to leasing under the authority of that Act and to
laws applicable to the leasing of the oil and gas resources of the
Federal outer Continental Shelf. All existing Federal oil and gas
leases within the expanded offshore State seaward boundaries shall
continue unchanged by the provisions of this Act, except as otherwise
provided herein. However, a State may exercise all of its sovereign
powers of taxation within the entire extent of its expanded offshore
State boundaries.''.
SEC. 109. DEFINITIONS UNDER THE OUTER CONTINENTAL SHELF LANDS ACT.
Section 2 of the Outer Continental Shelf Lands Act (43 U.S.C. 1331)
is amended--
(1) by amending paragraph (f) to read as follows:
``(f) The term `affected State' means the `Adjacent State'.'';
(2) by striking the semicolon at the end of each of
paragraphs (a) through (o) and inserting a period;
(3) by striking ``; and'' at the end of paragraph (p) and
inserting a period;
(4) by adding at the end the following:
``(r) The term `Adjacent State' means, with respect to any program,
plan, lease sale, leased tract or other activity, proposed, conducted,
or approved pursuant to the provisions of this Act, any State the laws
of which are declared, pursuant to section 4(a)(2), to be the law of
the United States for the portion of the outer Continental Shelf on
which such program, plan, lease sale, leased tract or activity
appertains or is, or is proposed to be, conducted. For purposes of this
paragraph, the term `State' includes the Commonwealth of Puerto Rico,
the Commonwealth of the Northern Mariana Islands, the Virgin Islands,
American Samoa, Guam, and the other Territories of the United States.
``(s) The term `Adjacent Zone' means, with respect to any program,
plan, lease sale, leased tract, or other activity, proposed, conducted,
or approved pursuant to the provisions of this Act, the portion of the
outer Continental Shelf for which the laws of a particular Adjacent
State are declared, pursuant to section 4(a)(2), to be the law of the
United States.
``(t) The term `miles' means statute miles.
``(u) The term `coastline' has the same meaning as the term `coast
line' as defined in section 2(c) of the Submerged Lands Act (43 U.S.C.
1301(c)).
``(v) The term `Neighboring State' means a coastal State having a
common boundary at the coastline with the Adjacent State.''; and
(5) in paragraph (a), by inserting after ``control'' the
following: ``or lying within the United States exclusive
economic zone adjacent to the Territories of the United
States''.
SEC. 110. DETERMINATION OF ADJACENT ZONES AND PLANNING AREAS.
Section 4(a)(2)(A) of the Outer Continental Shelf Lands Act (43
U.S.C. 1333(a)(2)(A)) is amended in the first sentence by striking ``,
and the President'' and all that follows through the end of the
sentence and inserting the following: ``. The lines extending seaward
and defining each State's Adjacent Zone, and each OCS Planning Area,
are as indicated on the maps for each outer Continental Shelf region
entitled `Alaska OCS Region State Adjacent Zone and OCS Planning
Areas', `Pacific OCS Region State Adjacent Zones and OCS Planning
Areas', `Gulf of Mexico OCS Region State Adjacent Zones and OCS
Planning Areas', and `Atlantic OCS Region State Adjacent Zones and OCS
Planning Areas', all of which are dated September 2005 and on file in
the Office of the Director, Minerals Management Service.''.
SEC. 111. ADMINISTRATION OF LEASING.
Section 5 of the Outer Continental Shelf Lands Act (43 U.S.C. 1334)
is amended by adding at the end the following:
``(k) Voluntary Partial Relinquishment of a Lease.--Any lessee of a
producing lease may relinquish to the Secretary any portion of a lease
that the lessee has no interest in producing and that the Secretary
finds is geologically prospective. In return for any such
relinquishment, the Secretary shall provide to the lessee a royalty
incentive for the portion of the lease retained by the lessee, in
accordance with regulations promulgated by the Secretary to carry out
this subsection. The Secretary shall publish final regulations
implementing this subsection within 365 days after the date of the
enactment of the Deep Ocean Energy Resources Act of 2009.''.
SEC. 112. GRANT OF LEASES BY SECRETARY.
Section 8 of the Outer Continental Shelf Lands Act (43 U.S.C. 1337)
is amended--
(1) by adding at the end of subsection (b) the following:
``The Secretary may issue more than one lease for a given tract if
each lease applies to a separate and distinct range of vertical depths,
horizontal surface area, or a combination of the two. The Secretary may
issue regulations that the Secretary determines are necessary to manage
such leases consistent with the purposes of this Act.'';
(2) by amending subsection (p)(2)(B) to read as follows:
``(B) The Secretary shall provide for the payment
to coastal States, and their local coastal governments,
of 75 percent of Federal receipts from projects
authorized under this section located partially or
completely within the area extending seaward of State
submerged lands out to 4 marine leagues from the
coastline, and the payment to coastal States of 50
percent of the receipts from projects completely
located in the area more than 4 marine leagues from the
coastline. Payments shall be based on a formula
established by the Secretary by rulemaking no later
than 180 days after the date of the enactment of the
Deep Ocean Energy Resources Act of 2009 that provides
for equitable distribution, based on proximity to the
project, among coastal States that have coastline that
is located within 200 miles of the geographic center of
the project.'';
(3) by adding at the end the following:
``(q) Removal of Restrictions on Joint Bidding in Certain Areas of
the Outer Continental Shelf.--Restrictions on joint bidders shall no
longer apply to tracts located in the Alaska OCS Region. Such
restrictions shall not apply to tracts in other OCS regions determined
to be `frontier tracts' or otherwise `high cost tracts' under final
regulations that shall be published by the Secretary by not later than
365 days after the date of the enactment of the Deep Ocean Energy
Resources Act of 2009.
``(r) Royalty Suspension Provisions.--After the date of the
enactment of the Deep Ocean Energy Resources Act of 2009, price
thresholds shall apply to any royalty suspension volumes granted by the
Secretary. Unless otherwise set by Secretary by regulation or for a
particular lease sale, the price thresholds shall be $40.50 for oil
(January 1, 2006, dollars) and $6.75 for natural gas (January 1, 2006,
dollars).
``(s) Conservation of Resources Fees.--Not later than one year
after the date of the enactment of the Deep Ocean Energy Resources Act
of 2009, the Secretary by regulation shall establish a conservation of
resources fee for nonproducing leases that will apply to new and
existing leases which shall be set at $3.75 per acre per year. This fee
shall apply from and after October 1, 2009, and shall be treated as
offsetting receipts.'';
(4) by striking subsection (a)(3)(A) and redesignating the
subsequent subparagraphs as subparagraphs (A) and (B),
respectively;
(5) in subsection (a)(3)(A) (as so redesignated) by
striking ``In the Western'' and all that follows through ``the
Secretary'' the first place it appears and inserting ``The
Secretary''; and
(6) effective October 1, 2009, in subsection (g)--
(A) by striking all after ``(g)'', except paragraph
(3);
(B) by striking the last sentence of paragraph (3);
and
(C) by striking ``(3)''.
SEC. 113. DISPOSITION OF RECEIPTS.
Section 9 of the Outer Continental Shelf Lands Act (43 U.S.C. 1338)
is amended--
(1) by designating the existing text as subsection (a);
(2) in subsection (a) (as so designated) by inserting ``,
if not paid as otherwise provided in this title'' after
``receipts''; and
(3) by adding the following:
``(b) Treatment of OCS Receipts From Tracts Completely Within 100
Miles of the Coastline.--
``(1) Deposit.--The Secretary shall deposit into a separate
account in the Treasury the portion of OCS Receipts for each
fiscal year that will be shared under paragraphs (2), (3), and
(4).
``(2) Phased-in receipts sharing.--
``(A) Beginning October 1, 2009, the Secretary
shall share OCS Receipts derived from the following
areas:
``(i) Lease tracts located on portions of
the Gulf of Mexico OCS Region completely beyond
4 marine leagues from any coastline and
completely within 100 miles of any coastline
that were available for leasing under the 2002-
2007 5-Year OCS Oil and Gas Leasing Program.
``(ii) Lease tracts in production prior to
October 1, 2009, completely beyond 4 marine
leagues from any coastline and completely
within 100 miles of any coastline located on
portions of the OCS that were not available for
leasing under the 2002-2007 5-Year OCS Oil and
Gas Leasing Program.
``(iii) Lease tracts for which leases are
issued prior to October 1, 2009, located in the
Alaska OCS Region completely beyond 4 marine
leagues from any coastline and completely
within 100 miles of the coastline.
``(B) The Secretary shall share the following
percentages of OCS Receipts from the leases described
in subparagraph (A) derived during the fiscal year
indicated:
``(i) For fiscal year 2010, 5 percent.
``(ii) For fiscal year 2011, 8 percent.
``(iii) For fiscal year 2012, 11 percent.
``(iv) For fiscal year 2013, 14 percent.
``(v) For fiscal year 2014, 17 percent.
``(vi) For fiscal year 2015, 20 percent.
``(vii) For fiscal year 2016, 23 percent.
``(viii) For fiscal year 2017, 26 percent.
``(ix) For fiscal year 2018, 29 percent.
``(x) For fiscal year 2019, 32 percent.
``(xi) For fiscal year 2020, 35 percent.
``(xii) For fiscal year 2021 and each
subsequent fiscal year, 37.5 percent.
``(C) The provisions of this paragraph shall not
apply to leases that could not have been issued but for
section 5(k) of this Act or section 106(2) of the Deep
Ocean Energy Resources Act of 2009.
``(3) Immediate receipts sharing.--Beginning October 1,
2009, the Secretary shall share 37.50 percent of OCS Receipts
derived from all leases located completely beyond 4 marine
leagues from any coastline and completely within 100 miles of
any coastline not included within the provisions of paragraph
(2), and 90 percent of the balance of such OCS Receipts shall
be deposited into the American Renewable and Alternative Energy
Trust Fund established by section 321 of the American Energy
Act.
``(4) Receipts sharing from tracts within 4 marine leagues
of any coastline.--
``(A) Areas described in paragraph (2).--Beginning
October 1, 2009, and continuing through September 30,
2011, the Secretary shall share 25 percent of OCS
Receipts derived from all leases located within 4
marine leagues from any coastline within areas
described in paragraph (2). For each fiscal year after
September 30, 2011, the Secretary shall increase the
percent shared in 5 percent increments each fiscal year
until the sharing rate for all leases located within 4
marine leagues from any coastline within areas
described in paragraph (2) becomes 75 percent.
``(B) Areas not described in paragraph (2).--
Beginning October 1, 2009, the Secretary shall share 75
percent of OCS receipts derived from all leases located
completely or partially within 4 marine leagues from
any coastline within areas not described paragraph (2).
``(5) Allocations.--The Secretary shall allocate the OCS
Receipts deposited into the separate account established by
paragraph (1) that are shared under paragraphs (2), (3), and
(4) as follows:
``(A) Bonus bids.--Deposits derived from bonus bids
from a leased tract, including interest thereon, shall
be allocated at the end of each fiscal year to the
Adjacent State.
``(B) Royalties.--Deposits derived from royalties
from a leased tract, including interest thereon, shall
be allocated at the end of each fiscal year to the
Adjacent State and any other producing State or States
with a leased tract within its Adjacent Zone within 100
miles of its coastline that generated royalties during
the fiscal year, if the other producing State or States
have a coastline point within 300 miles of any portion
of the leased tract, in which case the amount allocated
for the leased tract shall be--
``(i) one-third to the Adjacent State; and
``(ii) two-thirds to each producing State,
including the Adjacent State, inversely
proportional to the distance between the
nearest point on the coastline of the producing
State and the geographic center of the leased
tract.
``(c) Treatment of OCS Receipts From Tracts Partially or Completely
Beyond 100 Miles of the Coastline.--
``(1) Deposit.--The Secretary shall deposit into a separate
account in the Treasury the portion of OCS Receipts for each
fiscal year that will be shared under paragraphs (2) and (3).
``(2) Phased-in receipts sharing.--
``(A) Beginning October 1, 2009, the Secretary
shall share OCS Receipts derived from the following
areas:
``(i) Lease tracts located on portions of
the Gulf of Mexico OCS Region partially or
completely beyond 100 miles of any coastline
that were available for leasing under the 2002-
2007 5-Year OCS Oil and Gas Leasing Program.
``(ii) Lease tracts in production prior to
October 1, 2009, partially or completely beyond
100 miles of any coastline located on portions
of the OCS that were not available for leasing
under the 2002-2007 5-Year OCS Oil and Gas
Leasing Program.
``(iii) Lease tracts for which leases are
issued prior to October 1, 2009, located in the
Alaska OCS Region partially or completely
beyond 100 miles of the coastline.
``(B) The Secretary shall share the following
percentages of OCS Receipts from the leases described
in subparagraph (A) derived during the fiscal year
indicated:
``(i) For fiscal year 2010, 5 percent.
``(ii) For fiscal year 2011, 8 percent.
``(iii) For fiscal year 2012, 11 percent.
``(iv) For fiscal year 2013, 14 percent.
``(v) For fiscal year 2014, 17 percent.
``(vi) For fiscal year 2015, 20 percent.
``(vii) For fiscal year 2016, 23 percent.
``(viii) For fiscal year 2017, 26 percent.
``(ix) For fiscal year 2018, 29 percent.
``(x) For fiscal year 2019, 32 percent.
``(xi) For fiscal year 2020, 35 percent.
``(xii) For fiscal year 2021 and each
subsequent fiscal year, 37.5 percent.
``(C) The provisions of this paragraph shall not
apply to leases that could not have been issued but for
section 5(k) of this Act or section 106(2) of the Deep
Ocean Energy Resources Act of 2009.
``(3) Immediate receipts sharing.--Beginning October 1,
2009, the Secretary shall share 37.5 percent of OCS Receipts
derived on and after October 1, 2009, from all leases located
partially or completely beyond 100 miles of any coastline not
included within the provisions of paragraph (2), except that
the Secretary shall only share 25 percent of such OCS Receipts
derived from all such leases within a State's Adjacent Zone if
no leasing is allowed within any portion of that State's
Adjacent Zone located completely within 100 miles of any
coastline.
``(4) Allocations.--The Secretary shall allocate the OCS
Receipts deposited into the separate account established by
paragraph (1) that are shared under paragraphs (2) and (3) as
follows:
``(A) Bonus bids.--Deposits derived from bonus bids
from a leased tract, including interest thereon, shall
be allocated at the end of each fiscal year to the
Adjacent State.
``(B) Royalties.--Deposits derived from royalties
from a leased tract, including interest thereon, shall
be allocated at the end of each fiscal year to the
Adjacent State and any other producing State or States
with a leased tract within its Adjacent Zone partially
or completely beyond 100 miles of its coastline that
generated royalties during the fiscal year, if the
other producing State or States have a coastline point
within 300 miles of any portion of the leased tract, in
which case the amount allocated for the leased tract
shall be--
``(i) one-third to the Adjacent State; and
``(ii) two-thirds to each producing State,
including the Adjacent State, inversely
proportional to the distance between the
nearest point on the coastline of the producing
State and the geographic center of the leased
tract.
``(d) Transmission of Allocations.--
``(1) In general.--Not later than 90 days after the end of
each fiscal year, the Secretary shall transmit--
``(A) to each State 60 percent of such State's
allocations under subsections (b)(5)(A), (b)(5)(B),
(c)(4)(A), and (c)(4)(B) for the immediate prior fiscal
year;
``(B) to each coastal county-equivalent and
municipal political subdivisions of such State a total
of 40 percent of such State's allocations under
subsections (b)(5)(A), (b)(5)(B), (c)(4)(A), and
(c)(4)(B), together with all accrued interest thereon;
and
``(C) the remaining allocations under subsections
(b)(5) and (c)(4), together with all accrued interest
thereon.
``(2) Allocations to coastal county-equivalent political
subdivisions.--The Secretary shall make an initial allocation
of the OCS Receipts to be shared under paragraph (1)(B) as
follows:
``(A) 25 percent shall be allocated to coastal
county-equivalent political subdivisions that are
completely more than 25 miles landward of the coastline
and at least a part of which lies not more than 75
miles landward from the coastline, with the allocation
among such coastal county-equivalent political
subdivisions based on population.
``(B) 75 percent shall be allocated to coastal
county-equivalent political subdivisions that are
completely or partially less than 25 miles landward of
the coastline, with the allocation among such coastal
county-equivalent political subdivisions to be further
allocated as follows:
``(i) 25 percent shall be allocated based
on the ratio of such coastal county-equivalent
political subdivision's population to the
coastal population of all coastal county-
equivalent political subdivisions in the State.
``(ii) 25 percent shall be allocated based
on the ratio of such coastal county-equivalent
political subdivision's coastline miles to the
coastline miles of all coastal county-
equivalent political subdivisions in the State
as calculated by the Secretary. In such
calculations, coastal county-equivalent
political subdivisions without a coastline
shall be considered to have 50 percent of the
average coastline miles of the coastal county-
equivalent political subdivisions that do have
coastlines.
``(iii) 25 percent shall be allocated to
all coastal county-equivalent political
subdivisions having a coastline point within
300 miles of the leased tract for which OCS
Receipts are being shared based on a formula
that allocates the funds based on such coastal
county-equivalent political subdivision's
relative distance from the leased tract.
``(iv) 25 percent shall be allocated to all
coastal county-equivalent political
subdivisions having a coastline point within
300 miles of the leased tract for which OCS
Receipts are being shared based on the relative
level of outer Continental Shelf oil and gas
activities in a coastal political subdivision
compared to the level of outer Continental
Shelf activities in all coastal political
subdivisions in the State. The Secretary shall
define the term `outer Continental Shelf oil
and gas activities' for purposes of this
subparagraph to include, but not be limited to,
construction of vessels, drillships, and
platforms involved in exploration, production,
and development on the outer Continental Shelf;
support and supply bases, ports, and related
activities; offices of geologists,
geophysicists, engineers, and other
professionals involved in support of
exploration, production, and development of oil
and gas on the outer Continental Shelf;
pipelines and other means of transporting oil
and gas production from the outer Continental
Shelf; and processing and refining of oil and
gas production from the outer Continental
Shelf. For purposes of this subparagraph, if a
coastal county-equivalent political subdivision
does not have a coastline, its coastal point
shall be the point on the coastline closest to
it.
``(3) Allocations to coastal municipal political
subdivisions.--The initial allocation to each coastal county-
equivalent political subdivision under paragraph (2) shall be
further allocated to the coastal county-equivalent political
subdivision and any coastal municipal political subdivisions
located partially or wholly within the boundaries of the
coastal county-equivalent political subdivision as follows:
``(A) One-third shall be allocated to the coastal
county-equivalent political subdivision.
``(B) Two-thirds shall be allocated on a per capita
basis to the municipal political subdivisions and the
county-equivalent political subdivision, with the
allocation to the latter based upon its population not
included within the boundaries of a municipal political
subdivision.
``(e) Investment of Deposits.--Amounts deposited under this section
shall be invested by the Secretary of the Treasury in securities backed
by the full faith and credit of the United States having maturities
suitable to the needs of the account in which they are deposited and
yielding the highest reasonably available interest rates as determined
by the Secretary of the Treasury.
``(f) Use of Funds.--A recipient of funds under this section may
use the funds for one or more of the following:
``(1) To reduce in-State college tuition at public
institutions of higher learning and otherwise support public
education, including career technical education.
``(2) To make transportation infrastructure improvements.
``(3) To reduce taxes.
``(4) To promote, fund, and provide for--
``(A) coastal or environmental restoration;
``(B) fish, wildlife, and marine life habitat
enhancement;
``(C) waterways construction and maintenance;
``(D) levee construction and maintenance and shore
protection; and
``(E) marine and oceanographic education and
research.
``(5) To promote, fund, and provide for--
``(A) infrastructure associated with energy
production activities conducted on the outer
Continental Shelf;
``(B) energy demonstration projects;
``(C) supporting infrastructure for shore-based
energy projects;
``(D) State geologic programs, including geologic
mapping and data storage programs, and State
geophysical data acquisition;
``(E) State seismic monitoring programs, including
operation of monitoring stations;
``(F) development of oil and gas resources through
enhanced recovery techniques;
``(G) alternative energy development, including bio
fuels, coal-to-liquids, oil shale, tar sands,
geothermal, geopressure, wind, waves, currents, hydro,
solar, and other renewable energy;
``(H) energy efficiency and conservation programs;
and
``(I) front-end engineering and design for
facilities that produce liquid fuels from hydrocarbons
and other biological matter.
``(6) To promote, fund, and provide for--
``(A) historic preservation programs and projects;
``(B) natural disaster planning and response; and
``(C) hurricane and natural disaster insurance
programs.
``(7) For any other purpose as determined by State law.
``(g) No Accounting Required.--No recipient of funds under this
section shall be required to account to the Federal Government for the
expenditure of such funds, except as otherwise may be required by law.
However, States may enact legislation providing for accounting for and
auditing of such expenditures. Further, funds allocated under this
section to States and political subdivisions may be used as matching
funds for other Federal programs.
``(h) Effect of Future Laws.--Enactment of any future Federal
statute that has the effect, as determined by the Secretary, of
restricting any Federal agency from spending appropriated funds, or
otherwise preventing it from fulfilling its pre-existing
responsibilities as of the date of enactment of the statute, unless
such responsibilities have been reassigned to another Federal agency by
the statute with no prevention of performance, to issue any permit or
other approval impacting on the OCS oil and gas leasing program, or any
lease issued thereunder, or to implement any provision of this Act
shall automatically prohibit any sharing of OCS Receipts under this
section directly with the States, and their coastal political
subdivisions, for the duration of the restriction. The Secretary shall
make the determination of the existence of such restricting effects
within 30 days of a petition by any outer Continental Shelf lessee or
producing State.
``(i) Definitions.--In this section:
``(1) Coastal county-equivalent political subdivision.--The
term `coastal county-equivalent political subdivision' means a
political jurisdiction immediately below the level of State
government, including a county, parish, borough in Alaska,
independent municipality not part of a county, parish, or
borough in Alaska, or other equivalent subdivision of a coastal
State, that lies within the coastal zone.
``(2) Coastal municipal political subdivision.--The term
`coastal municipal political subdivision' means a municipality
located within and part of a county, parish, borough in Alaska,
or other equivalent subdivision of a State, all or part of
which coastal municipal political subdivision lies within the
coastal zone.
``(3) Coastal population.--The term `coastal population'
means the population of all coastal county-equivalent political
subdivisions, as determined by the most recent official data of
the Census Bureau.
``(4) Coastal zone.--The term `coastal zone' means that
portion of a coastal State, including the entire territory of
any coastal county-equivalent political subdivision at least a
part of which lies, within 75 miles landward from the
coastline, or a greater distance as determined by State law
enacted to implement this section.
``(5) Bonus bids.--The term `bonus bids' means all funds
received by the Secretary to issue an outer Continental Shelf
minerals lease.
``(6) Royalties.--The term `royalties' means all funds
received by the Secretary from production of oil or natural
gas, or the sale of production taken in-kind, from an outer
Continental Shelf minerals lease.
``(7) Producing state.--The term `producing State' means an
Adjacent State having an Adjacent Zone containing leased tracts
from which OCS Receipts were derived.
``(8) OCS receipts.--The term `OCS Receipts' means bonus
bids, royalties, and conservation of resources fees.''.
SEC. 114. RESERVATION OF LANDS AND RIGHTS.
Section 12 of the Outer Continental Shelf Lands Act (43 U.S.C.
1341) is amended by adding at the end the following:
``(g) Prohibition on Leasing East of the Military Mission Line.--
``(1) Notwithstanding any other provision of law, from and
after the enactment of the Deep Ocean Energy Resources Act of
2009, prior to January 1, 2022, no area of the outer
Continental Shelf located in the Gulf of Mexico east of the
military mission line may be offered for leasing for oil and
gas or natural gas unless a waiver is issued by the Secretary
of Defense. If such a waiver is granted, 62.5 percent of the
OCS Receipts from a lease within such area issued because of
such waiver shall be paid annually to the National Guards of
all States having a point within 1000 miles of such a lease,
allocated among the States on a per capita basis using the
entire population of such States.
``(2) In this subsection, the term `military mission line'
means a line located at 86 degrees, 41 minutes West Longitude,
and extending south from the coast of Florida to the outer
boundary of United States territorial waters in the Gulf of
Mexico.''.
SEC. 115. OUTER CONTINENTAL SHELF LEASING PROGRAM.
Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C.
1344) is amended--
(1) in subsection (a), by adding at the end of paragraph
(3) the following: ``The Secretary shall, in each 5-Year
Program, include lease sales that when viewed as a whole
propose to offer for oil and gas leasing at least 75 percent of
the available unleased acreage within each OCS Planning Area.
Available unleased acreage is that portion of the outer
Continental Shelf that is not under lease at the time of the
proposed lease sale, and has not otherwise been made
unavailable for leasing by law.'';
(2) in subsection (c), by striking so much as precedes
paragraph (3) and inserting the following:
``(c)(1) During the preparation of any proposed leasing program
under this section, the Secretary shall consider and analyze leasing
throughout the entire outer Continental Shelf without regard to any
other law affecting such leasing. During this preparation the Secretary
shall invite and consider suggestions from any interested Federal
agency, including the Attorney General, in consultation with the
Federal Trade Commission, and from the Governor of any coastal State.
The Secretary may also invite or consider any suggestions from the
executive of any local government in a coastal State that have been
previously submitted to the Governor of such State, and from any other
person. Further, the Secretary shall consult with the Secretary of
Defense regarding military operational needs in the outer Continental
Shelf. The Secretary shall work with the Secretary of Defense to
resolve any conflicts that might arise regarding offering any area of
the outer Continental Shelf for oil and gas leasing. If the Secretaries
are not able to resolve all such conflicts, any unresolved issues shall
be elevated to the President for resolution.
``(2) After the consideration and analysis required by paragraph
(1), including the consideration of the suggestions received from any
interested Federal agency, the Federal Trade Commission, the Governor
of any coastal State, any local government of a coastal State, and any
other person, the Secretary shall publish in the Federal Register a
proposed leasing program accompanied by a draft environmental impact
statement prepared pursuant to the National Environmental Policy Act of
1969. After the publishing of the proposed leasing program and during
the comment period provided for on the draft environmental impact
statement, the Secretary shall submit a copy of the proposed program to
the Governor of each affected State for review and comment. The
Governor may solicit comments from those executives of local
governments in the Governor's State that the Governor, in the
discretion of the Governor, determines will be affected by the proposed
program. If any comment by such Governor is received by the Secretary
at least 15 days prior to submission to the Congress pursuant to
paragraph (3) and includes a request for any modification of such
proposed program, the Secretary shall reply in writing, granting or
denying such request in whole or in part, or granting such request in
such modified form as the Secretary considers appropriate, and stating
the Secretary's reasons therefor. All such correspondence between the
Secretary and the Governor of any affected State, together with any
additional information and data relating thereto, shall accompany such
proposed program when it is submitted to the Congress.''; and
(3) by adding at the end the following:
``(i) Projection of State Adjacent Zone Resources and State and
Local Government Shares of OCS Receipts.--Concurrent with the
publication of the scoping notice at the beginning of the development
of each 5-Year Outer Continental Shelf Oil and Gas Leasing Program, or
as soon thereafter as possible, the Secretary shall--
``(1) provide to each Adjacent State a current estimate of
proven and potential oil and gas resources located within the
State's Adjacent Zone; and
``(2) provide to each Adjacent State, and coastal political
subdivisions thereof, a best-efforts projection of the OCS
Receipts that the Secretary expects will be shared with each
Adjacent State, and its coastal political subdivisions, using
the assumption that the unleased tracts within the State's
Adjacent Zone are fully made available for leasing, including
long-term projected OCS Receipts. In addition, the Secretary
shall include a macroeconomic estimate of the impact of such
leasing on the national economy and each State's economy,
including investment, jobs, revenues, personal income, and
other categories.''.
SEC. 116. COORDINATION WITH ADJACENT STATES.
Section 19 of the Outer Continental Shelf Lands Act (43 U.S.C.
1345) is amended--
(1) in subsection (a) in the first sentence by inserting
``, for any tract located within the Adjacent State's Adjacent
Zone,'' after ``government''; and
(2) by adding the following:
``(f)(1) No Federal agency may permit or otherwise approve, without
the concurrence of the Adjacent State, the construction of a crude oil
or petroleum products (or both) pipeline within the part of the
Adjacent State's Adjacent Zone that is withdrawn from oil and gas
leasing, except that such a pipeline may be approved, without such
Adjacent State's concurrence, to pass through such Adjacent Zone if at
least 50 percent of the production projected to be carried by the
pipeline within its first 10 years of operation is from areas of the
Adjacent State's Adjacent Zone.
``(2) No State may prohibit the construction within its Adjacent
Zone or its State waters of a natural gas pipeline that will transport
natural gas produced from the outer Continental Shelf. However, an
Adjacent State may prevent a proposed natural gas pipeline landing
location if it proposes two alternate landing locations in the Adjacent
State, acceptable to the Adjacent State, located within 50 miles on
either side of the proposed landing location.''.
SEC. 117. ENVIRONMENTAL STUDIES.
Section 20(d) of the Outer Continental Shelf Lands Act (43 U.S.C.
1346) is amended--
(1) by inserting ``(1)'' after ``(d)''; and
(2) by adding at the end the following:
``(2) For all programs, lease sales, leases, and actions
under this Act, the following shall apply regarding the
application of the National Environmental Policy Act of 1969:
``(A) Granting or directing lease suspensions and
the conduct of all preliminary activities on outer
Continental Shelf tracts, including seismic activities,
are categorically excluded from the need to prepare
either an environmental assessment or an environmental
impact statement, and the Secretary shall not be
required to analyze whether any exceptions to a
categorical exclusion apply for activities conducted
under the authority of this Act.
``(B) The environmental impact statement developed
in support of each 5-Year Oil and Gas Leasing Program
provides the environmental analysis for all lease sales
to be conducted under the program and such sales shall
not be subject to further environmental analysis.
``(C) Exploration plans shall not be subject to any
requirement to prepare an environmental impact
statement, and the Secretary may find that exploration
plans are eligible for categorical exclusion due to the
impacts already being considered within an
environmental impact statement or due to mitigation
measures included within the plan.
``(D) Within each OCS Planning Area, after the
preparation of the first development and production
plan environmental impact statement for a leased tract
within the Area, future development and production
plans for leased tracts within the Area shall only
require the preparation of an environmental assessment
unless the most recent development and production plan
environmental impact statement within the Area was
finalized more than 10 years prior to the date of the
approval of the plan, in which case an environmental
impact statement shall be required.''.
SEC. 118. OUTER CONTINENTAL SHELF INCOMPATIBLE USE.
(a) In General.--No Federal agency may permit construction or
operation (or both) of any facility, or designate or maintain a
restricted transportation corridor or operating area on the Federal
outer Continental Shelf or in State waters, that will be incompatible
with, as determined by the Secretary of the Interior, oil and gas
leasing and substantially full exploration and production of tracts
that are geologically prospective for oil or natural gas (or both).
(b) Exceptions.--Subsection (a) shall not apply to any facility,
transportation corridor, or operating area the construction, operation,
designation, or maintenance of which is or will be--
(1) located in an area of the outer Continental Shelf that
is unavailable for oil and gas leasing by operation of law;
(2) used for a military readiness activity (as defined in
section 315(f) of Public Law 107-314; 16 U.S.C. 703 note); or
(3) required in the national interest, as determined by the
President.
SEC. 119. REPURCHASE OF CERTAIN LEASES.
(a) Authority To Repurchase and Cancel Certain Leases.--The
Secretary of the Interior shall repurchase and cancel any Federal oil
and gas, geothermal, coal, oil shale, tar sands, or other mineral
lease, whether onshore or offshore, but not including any outer
Continental Shelf oil and gas leases that were subject to litigation in
the Court of Federal Claims on January 1, 2006, if the Secretary finds
that such lease qualifies for repurchase and cancellation under the
regulations authorized by this section.
(b) Regulations.--Not later than 365 days after the date of the
enactment of this Act, the Secretary shall publish a final regulation
stating the conditions under which a lease referred to in subsection
(a) would qualify for repurchase and cancellation, and the process to
be followed regarding repurchase and cancellation. Such regulation
shall include, but not be limited to, the following:
(1) The Secretary shall repurchase and cancel a lease after
written request by the lessee upon a finding by the Secretary
that--
(A) a request by the lessee for a required permit
or other approval complied with applicable law, except
the Coastal Zone Management Act of 1972 (16 U.S.C. 1451
et seq.), and terms of the lease and such permit or
other approval was denied;
(B) a Federal agency failed to act on a request by
the lessee for a required permit, other approval, or
administrative appeal within a regulatory or statutory
time-frame associated with the requested action,
whether advisory or mandatory, or if none, within 180
days; or
(C) a Federal agency attached a condition of
approval, without agreement by the lessee, to a
required permit or other approval if such condition of
approval was not mandated by Federal statute or
regulation in effect on the date of lease issuance, or
was not specifically allowed under the terms of the
lease.
(2) A lessee shall not be required to exhaust
administrative remedies regarding a permit request,
administrative appeal, or other required request for approval
for the purposes of this section.
(3) The Secretary shall make a final agency decision on a
request by a lessee under this section within 180 days of
request.
(4) Compensation to a lessee to repurchase and cancel a
lease under this section shall be the amount that a lessee
would receive in a restitution case for a material breach of
contract.
(5) Compensation shall be in the form of a check or
electronic transfer from the Department of the Treasury from
funds deposited into miscellaneous receipts under the authority
of the same Act that authorized the issuance of the lease being
repurchased.
(6) Failure of the Secretary to make a final agency
decision on a request by a lessee under this section within 180
days of request shall result in a 10 percent increase in the
compensation due to the lessee if the lease is ultimately
repurchased.
(c) No Prejudice.--This section shall not be interpreted to
prejudice any other rights that the lessee would have in the absence of
this section.
SEC. 120. OFFSITE ENVIRONMENTAL MITIGATION.
Notwithstanding any other provision of law, any person conducting
activities under the Mineral Leasing Act (30 U.S.C. 181 et seq.), the
Geothermal Steam Act (30 U.S.C. 1001 et seq.), the Mineral Leasing Act
for Acquired Lands (30 U.S.C. 351 et seq.), the Weeks Act (16 U.S.C.
552 et seq.), the General Mining Act of 1872 (30 U.S.C. 22 et seq.),
the Materials Act of 1947 (30 U.S.C. 601 et seq.), or the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.), may in satisfying
any mitigation requirements associated with such activities propose
mitigation measures on a site away from the area impacted and the
Secretary of the Interior shall accept these proposed measures if the
Secretary finds that they generally achieve the purposes for which
mitigation measures appertained.
SEC. 121. OCS REGIONAL HEADQUARTERS.
Not later than July 1, 2011, the Secretary of the Interior shall
establish the headquarters for the Atlantic OCS Region, the
headquarters for the Gulf of Mexico OCS Region, and the headquarters
for the Pacific OCS Region within a State bordering the Atlantic OCS
Region, a State bordering the Gulf of Mexico OCS Region, and a State
bordering the Pacific OCS Region. Such Atlantic and Pacific OCS Regions
headquarters shall be located within 25 miles of the coastline and each
Minerals Management Service OCS regional headquarters shall be the
permanent duty station for all Minerals Management Service personnel
that on a daily basis spend on average 60 percent or more of their time
in performance of duties in support of the activities of the respective
Region, except that the Minerals Management Service may house regional
inspection staff in other locations. Each OCS Region shall each be led
by a Regional Director who shall be an employee within the Senior
Executive Service.
SEC. 122. LEASES FOR AREAS LOCATED WITHIN 12 NAUTICAL MILES OF
CALIFORNIA OR FLORIDA.
(a) Authorization To Cancel and Exchange Certain Existing Oil and
Gas Leases.--
(1) Authority.--Within 2 years after the date of enactment
of this Act, the lessee of an existing oil and gas lease for an
area located completely within 12 nautical miles of the
coastline within the California or Florida Adjacent Zones shall
have the option, without compensation, of exchanging such lease
for a new oil and gas lease having a primary term of 5 years.
For the area subject to the new lease, the lessee may select
any unleased tract on the outer Continental Shelf that is in an
area available for leasing.
(2) Administrative process.--The Secretary of the Interior
shall establish a reasonable administrative process to
implement paragraph (1). Exchanges and conversions under
subsection (a), including the issuance of new leases, shall not
be considered to be major Federal actions for purposes of the
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et
seq.). Further, such actions conducted in accordance with this
section are deemed to be in compliance all provisions of the
Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.).
(3) Operating restrictions.--A new lease issued in exchange
for an existing lease under this section shall be subject to
such national defense operating stipulations on the OCS tract
covered by the new lease as may be applicable upon issuance.
(4) Priority.--The Secretary shall give priority in the
lease exchange process based on the amount of the original
bonus bid paid for the issuance of each lease to be exchanged.
The Secretary shall allow leases covering partial tracts to be
exchanged for leases covering full tracts conditioned upon
payment of additional bonus bids on a per-acre basis as
determined by the average per acre of the original bonus bid
per acre for the partial tract being exchanged.
(b) Further Lease Cancellation and Exchange Provisions.--
(1) Cancellation of lease.--As part of the lease exchange
process under this section, the Secretary shall cancel a lease
that is exchanged under this section.
(2) Consent of lessees.--All lessees holding an interest in
a lease must consent to cancellation of their leasehold
interests in order for the lease to be cancelled and exchanged
under this section.
(3) Waiver of rights.--As a prerequisite to the exchange of
a lease under this section, the lessee must waive any rights to
bring any litigation against the United States related to the
transaction.
(4) Plugging and abandonment.--The plugging and abandonment
requirements for any wells located on any lease to be cancelled
and exchanged under this section must be complied with by the
lessees prior to the cancellation and exchange.
(c) Existing Oil and Gas Lease Defined.--In this section the term
``existing oil and gas lease'' means an oil and gas lease in effect on
the date of the enactment of this Act.
SEC. 123. COASTAL IMPACT ASSISTANCE.
Section 31 of the Outer Continental Shelf Lands Act (43 U.S.C.
1356a) is repealed.
SEC. 124. REPEAL OF THE GULF OF MEXICO ENERGY SECURITY ACT OF 2006.
The Gulf of Mexico Energy Security Act of 2006 is repealed
effective October 1, 2009.
Subtitle B--ANWR
SEC. 141. SHORT TITLE.
This subtitle may be cited as the ``American Energy Independence
and Price Reduction Act''.
SEC. 142. DEFINITIONS.
In this subtitle:
(1) Coastal plain.--The term ``Coastal Plain'' means that
area described in appendix I to part 37 of title 50, Code of
Federal Regulations.
(2) Secretary.--The term ``Secretary'', except as otherwise
provided, means the Secretary of the Interior or the
Secretary's designee.
SEC. 143. LEASING PROGRAM FOR LANDS WITHIN THE COASTAL PLAIN.
(a) In General.--The Secretary shall take such actions as are
necessary--
(1) to establish and implement, in accordance with this
subtitle and acting through the Director of the Bureau of Land
Management in consultation with the Director of the United
States Fish and Wildlife Service, a competitive oil and gas
leasing program that will result in an environmentally sound
program for the exploration, development, and production of the
oil and gas resources of the Coastal Plain; and
(2) to administer the provisions of this subtitle through
regulations, lease terms, conditions, restrictions,
prohibitions, stipulations, and other provisions that ensure
the oil and gas exploration, development, and production
activities on the Coastal Plain will result in no significant
adverse effect on fish and wildlife, their habitat, subsistence
resources, and the environment, including, in furtherance of
this goal, by requiring the application of the best
commercially available technology for oil and gas exploration,
development, and production to all exploration, development,
and production operations under this subtitle in a manner that
ensures the receipt of fair market value by the public for the
mineral resources to be leased.
(b) Repeal.--
(1) Repeal.--Section 1003 of the Alaska National Interest
Lands Conservation Act of 1980 (16 U.S.C. 3143) is repealed.
(2) Conforming amendment.--The table of contents in section
1 of such Act is amended by striking the item relating to
section 1003.
(c) Compliance With Requirements Under Certain Other Laws.--
(1) Compatibility.--For purposes of the National Wildlife
Refuge System Administration Act of 1966 (16 U.S.C. 668dd et
seq.), the oil and gas leasing program and activities
authorized by this section in the Coastal Plain are deemed to
be compatible with the purposes for which the Arctic National
Wildlife Refuge was established, and no further findings or
decisions are required to implement this determination.
(2) Adequacy of the department of the interior's
legislative environmental impact statement.--The ``Final
Legislative Environmental Impact Statement'' (April 1987) on
the Coastal Plain prepared pursuant to section 1002 of the
Alaska National Interest Lands Conservation Act of 1980 (16
U.S.C. 3142) and section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)) is
deemed to satisfy the requirements under the National
Environmental Policy Act of 1969 that apply with respect to
prelease activities, including actions authorized to be taken
by the Secretary to develop and promulgate the regulations for
the establishment of a leasing program authorized by this
subtitle before the conduct of the first lease sale.
(3) Compliance with nepa for other actions.--Before
conducting the first lease sale under this subtitle, the
Secretary shall prepare an environmental impact statement under
the National Environmental Policy Act of 1969 with respect to
the actions authorized by this subtitle that are not referred
to in paragraph (2). Notwithstanding any other law, the
Secretary is not required to identify nonleasing alternative
courses of action or to analyze the environmental effects of
such courses of action. The Secretary shall only identify a
preferred action for such leasing and a single leasing
alternative, and analyze the environmental effects and
potential mitigation measures for those two alternatives. The
identification of the preferred action and related analysis for
the first lease sale under this subtitle shall be completed
within 18 months after the date of enactment of this Act. The
Secretary shall only consider public comments that specifically
address the Secretary's preferred action and that are filed
within 20 days after publication of an environmental analysis.
Notwithstanding any other law, compliance with this paragraph
is deemed to satisfy all requirements for the analysis and
consideration of the environmental effects of proposed leasing
under this subtitle.
(d) Relationship to State and Local Authority.--Nothing in this
subtitle shall be considered to expand or limit State and local
regulatory authority.
(e) Special Areas.--
(1) In general.--The Secretary, after consultation with the
State of Alaska, the city of Kaktovik, and the North Slope
Borough, may designate up to a total of 45,000 acres of the
Coastal Plain as a Special Area if the Secretary determines
that the Special Area is of such unique character and interest
so as to require special management and regulatory protection.
The Secretary shall designate as such a Special Area the
Sadlerochit Spring area, comprising approximately 4,000 acres.
(2) Management.--Each such Special Area shall be managed so
as to protect and preserve the area's unique and diverse
character including its fish, wildlife, and subsistence
resource values.
(3) Exclusion from leasing or surface occupancy.--The
Secretary may exclude any Special Area from leasing. If the
Secretary leases a Special Area, or any part thereof, for
purposes of oil and gas exploration, development, production,
and related activities, there shall be no surface occupancy of
the lands comprising the Special Area.
(4) Directional drilling.--Notwithstanding the other
provisions of this subsection, the Secretary may lease all or a
portion of a Special Area under terms that permit the use of
horizontal drilling technology from sites on leases located
outside the Special Area.
(f) Limitation on Closed Areas.--The Secretary's sole authority to
close lands within the Coastal Plain to oil and gas leasing and to
exploration, development, and production is that set forth in this
subtitle.
(g) Regulations.--
(1) In general.--The Secretary shall prescribe such
regulations as may be necessary to carry out this subtitle,
including rules and regulations relating to protection of the
fish and wildlife, their habitat, subsistence resources, and
environment of the Coastal Plain, by no later than 15 months
after the date of enactment of this Act.
(2) Revision of regulations.--The Secretary shall
periodically review and, if appropriate, revise the rules and
regulations issued under subsection (a) to reflect any
significant biological, environmental, or engineering data that
come to the Secretary's attention.
SEC. 144. LEASE SALES.
(a) In General.--Lands may be leased pursuant to this subtitle to
any person qualified to obtain a lease for deposits of oil and gas
under the Mineral Leasing Act (30 U.S.C. 181 et seq.).
(b) Procedures.--The Secretary shall, by regulation, establish
procedures for--
(1) receipt and consideration of sealed nominations for any
area in the Coastal Plain for inclusion in, or exclusion (as
provided in subsection (c)) from, a lease sale;
(2) the holding of lease sales after such nomination
process; and
(3) public notice of and comment on designation of areas to
be included in, or excluded from, a lease sale.
(c) Lease Sale Bids.--Bidding for leases under this subtitle shall
be by sealed competitive cash bonus bids.
(d) Acreage Minimum in First Sale.--In the first lease sale under
this subtitle, the Secretary shall offer for lease those tracts the
Secretary considers to have the greatest potential for the discovery of
hydrocarbons, taking into consideration nominations received pursuant
to subsection (b)(1), but in no case less than 200,000 acres.
(e) Timing of Lease Sales.--The Secretary shall--
(1) conduct the first lease sale under this subtitle within
22 months after the date of the enactment of this Act;
(2) evaluate the bids in such sale and issue leases
resulting from such sale, within 90 days after the date of the
completion of such sale; and
(3) conduct additional sales so long as sufficient interest
in development exists to warrant, in the Secretary's judgment,
the conduct of such sales.
SEC. 145. GRANT OF LEASES BY THE SECRETARY.
(a) In General.--The Secretary may grant to the highest responsible
qualified bidder in a lease sale conducted pursuant to section 144 any
lands to be leased on the Coastal Plain upon payment by the lessee of
such bonus as may be accepted by the Secretary.
(b) Subsequent Transfers.--No lease issued under this subtitle may
be sold, exchanged, assigned, sublet, or otherwise transferred except
with the approval of the Secretary. Prior to any such approval the
Secretary shall consult with, and give due consideration to the views
of, the Attorney General.
SEC. 146. LEASE TERMS AND CONDITIONS.
(a) In General.--An oil or gas lease issued pursuant to this
subtitle shall--
(1) provide for the payment of a royalty of not less than
12\1/2\ percent in amount or value of the production removed or
sold from the lease, as determined by the Secretary under the
regulations applicable to other Federal oil and gas leases;
(2) provide that the Secretary may close, on a seasonal
basis, portions of the Coastal Plain to exploratory drilling
activities as necessary to protect caribou calving areas and
other species of fish and wildlife;
(3) require that the lessee of lands within the Coastal
Plain shall be fully responsible and liable for the reclamation
of lands within the Coastal Plain and any other Federal lands
that are adversely affected in connection with exploration,
development, production, or transportation activities conducted
under the lease and within the Coastal Plain by the lessee or
by any of the subcontractors or agents of the lessee;
(4) provide that the lessee may not delegate or convey, by
contract or otherwise, the reclamation responsibility and
liability to another person without the express written
approval of the Secretary;
(5) provide that the standard of reclamation for lands
required to be reclaimed under this subtitle shall be, as
nearly as practicable, a condition capable of supporting the
uses which the lands were capable of supporting prior to any
exploration, development, or production activities, or upon
application by the lessee, to a higher or better use as
approved by the Secretary;
(6) contain terms and conditions relating to protection of
fish and wildlife, their habitat, subsistence resources, and
the environment as required pursuant to section 143(a)(2);
(7) provide that the lessee, its agents, and its
contractors use best efforts to provide a fair share, as
determined by the level of obligation previously agreed to in
the 1974 agreement implementing section 29 of the Federal
Agreement and Grant of Right of Way for the Operation of the
Trans-Alaska Pipeline, of employment and contracting for Alaska
Natives and Alaska Native Corporations from throughout the
State;
(8) prohibit the export of oil produced under the lease;
and
(9) contain such other provisions as the Secretary
determines necessary to ensure compliance with the provisions
of this subtitle and the regulations issued under this
subtitle.
(b) Project Labor Agreements.--The Secretary, as a term and
condition of each lease under this subtitle and in recognizing the
Government's proprietary interest in labor stability and in the ability
of construction labor and management to meet the particular needs and
conditions of projects to be developed under the leases issued pursuant
to this subtitle and the special concerns of the parties to such
leases, shall require that the lessee and its agents and contractors
negotiate to obtain a project labor agreement for the employment of
laborers and mechanics on production, maintenance, and construction
under the lease.
SEC. 147. COASTAL PLAIN ENVIRONMENTAL PROTECTION.
(a) No Significant Adverse Effect Standard To Govern Authorized
Coastal Plain Activities.--The Secretary shall, consistent with the
requirements of section 143, administer the provisions of this subtitle
through regulations, lease terms, conditions, restrictions,
prohibitions, stipulations, and other provisions that--
(1) ensure the oil and gas exploration, development, and
production activities on the Coastal Plain will result in no
significant adverse effect on fish and wildlife, their habitat,
and the environment;
(2) require the application of the best commercially
available technology for oil and gas exploration, development,
and production on all new exploration, development, and
production operations; and
(3) ensure that the maximum amount of surface acreage
covered by production and support facilities, including
airstrips and any areas covered by gravel berms or piers for
support of pipelines, does not exceed 2,000 acres on the
Coastal Plain.
(b) Site-Specific Assessment and Mitigation.--The Secretary shall
also require, with respect to any proposed drilling and related
activities, that--
(1) a site-specific analysis be made of the probable
effects, if any, that the drilling or related activities will
have on fish and wildlife, their habitat, subsistence
resources, and the environment;
(2) a plan be implemented to avoid, minimize, and mitigate
(in that order and to the extent practicable) any significant
adverse effect identified under paragraph (1); and
(3) the development of the plan shall occur after
consultation with the agency or agencies having jurisdiction
over matters mitigated by the plan.
(c) Regulations To Protect Coastal Plain Fish and Wildlife
Resources, Subsistence Users, and the Environment.--Before implementing
the leasing program authorized by this subtitle, the Secretary shall
prepare and promulgate regulations, lease terms, conditions,
restrictions, prohibitions, stipulations, and other measures designed
to ensure that the activities undertaken on the Coastal Plain under
this subtitle are conducted in a manner consistent with the purposes
and environmental requirements of this subtitle.
(d) Compliance With Federal and State Environmental Laws and Other
Requirements.--The proposed regulations, lease terms, conditions,
restrictions, prohibitions, and stipulations for the leasing program
under this subtitle shall require compliance with all applicable
provisions of Federal and State environmental law, and shall also
require the following:
(1) Standards at least as effective as the safety and
environmental mitigation measures set forth in items 1 through
29 at pages 167 through 169 of the ``Final Legislative
Environmental Impact Statement'' (April 1987) on the Coastal
Plain.
(2) Seasonal limitations on exploration, development, and
related activities, where necessary, to avoid significant
adverse effects during periods of concentrated fish and
wildlife breeding, denning, nesting, spawning, and migration.
(3) That exploration activities, except for surface
geological studies, be limited to the period between
approximately November 1 and May 1 each year and that
exploration activities shall be supported, if necessary, by ice
roads, winter trails with adequate snow cover, ice pads, ice
airstrips, and air transport methods, except that such
exploration activities may occur at other times if the
Secretary finds that such exploration will have no significant
adverse effect on the fish and wildlife, their habitat, and the
environment of the Coastal Plain.
(4) Design safety and construction standards for all
pipelines and any access and service roads, that--
(A) minimize, to the maximum extent possible,
adverse effects upon the passage of migratory species
such as caribou; and
(B) minimize adverse effects upon the flow of
surface water by requiring the use of culverts,
bridges, and other structural devices.
(5) Prohibitions on general public access and use on all
pipeline access and service roads.
(6) Stringent reclamation and rehabilitation requirements,
consistent with the standards set forth in this subtitle,
requiring the removal from the Coastal Plain of all oil and gas
development and production facilities, structures, and
equipment upon completion of oil and gas production operations,
except that the Secretary may exempt from the requirements of
this paragraph those facilities, structures, or equipment that
the Secretary determines would assist in the management of the
Arctic National Wildlife Refuge and that are donated to the
United States for that purpose.
(7) Appropriate prohibitions or restrictions on access by
all modes of transportation.
(8) Appropriate prohibitions or restrictions on sand and
gravel extraction.
(9) Consolidation of facility siting.
(10) Appropriate prohibitions or restrictions on use of
explosives.
(11) Avoidance, to the extent practicable, of springs,
streams, and river system; the protection of natural surface
drainage patterns, wetlands, and riparian habitats; and the
regulation of methods or techniques for developing or
transporting adequate supplies of water for exploratory
drilling.
(12) Avoidance or minimization of air traffic-related
disturbance to fish and wildlife.
(13) Treatment and disposal of hazardous and toxic wastes,
solid wastes, reserve pit fluids, drilling muds and cuttings,
and domestic wastewater, including an annual waste management
report, a hazardous materials tracking system, and a
prohibition on chlorinated solvents, in accordance with
applicable Federal and State environmental law.
(14) Fuel storage and oil spill contingency planning.
(15) Research, monitoring, and reporting requirements.
(16) Field crew environmental briefings.
(17) Avoidance of significant adverse effects upon
subsistence hunting, fishing, and trapping by subsistence
users.
(18) Compliance with applicable air and water quality
standards.
(19) Appropriate seasonal and safety zone designations
around well sites, within which subsistence hunting and
trapping shall be limited.
(20) Reasonable stipulations for protection of cultural and
archeological resources.
(21) All other protective environmental stipulations,
restrictions, terms, and conditions deemed necessary by the
Secretary.
(e) Considerations.--In preparing and promulgating regulations,
lease terms, conditions, restrictions, prohibitions, and stipulations
under this section, the Secretary shall consider the following:
(1) The stipulations and conditions that govern the
National Petroleum Reserve-Alaska leasing program, as set forth
in the 1999 Northeast National Petroleum Reserve-Alaska Final
Integrated Activity Plan/Environmental Impact Statement.
(2) The environmental protection standards that governed
the initial Coastal Plain seismic exploration program under
parts 37.31 to 37.33 of title 50, Code of Federal Regulations.
(3) The land use stipulations for exploratory drilling on
the KIC-ASRC private lands that are set forth in appendix 2 of
the August 9, 1983, agreement between Arctic Slope Regional
Corporation and the United States.
(f) Facility Consolidation Planning.--
(1) In general.--The Secretary shall, after providing for
public notice and comment, prepare and update periodically a
plan to govern, guide, and direct the siting and construction
of facilities for the exploration, development, production, and
transportation of Coastal Plain oil and gas resources.
(2) Objectives.--The plan shall have the following
objectives:
(A) Avoiding unnecessary duplication of facilities
and activities.
(B) Encouraging consolidation of common facilities
and activities.
(C) Locating or confining facilities and activities
to areas that will minimize impact on fish and
wildlife, their habitat, and the environment.
(D) Utilizing existing facilities wherever
practicable.
(E) Enhancing compatibility between wildlife values
and development activities.
(g) Access to Public Lands.--The Secretary shall--
(1) manage public lands in the Coastal Plain subject to
subsections (a) and (b) of section 811 of the Alaska National
Interest Lands Conservation Act (16 U.S.C. 3121); and
(2) ensure that local residents shall have reasonable
access to public lands in the Coastal Plain for traditional
uses.
SEC. 148. EXPEDITED JUDICIAL REVIEW.
(a) Filing of Complaint.--
(1) Deadline.--Subject to paragraph (2), any complaint
seeking judicial review of any provision of this subtitle or
any action of the Secretary under this subtitle shall be
filed--
(A) except as provided in subparagraph (B), within
the 60-day period beginning on the date of the action
being challenged; or
(B) in the case of a complaint based solely on
grounds arising after such period, within 60 days after
the complainant knew or reasonably should have known of
the grounds for the complaint.
(2) Venue.--Any complaint seeking judicial review of any
provision of this subtitle or any action of the Secretary under
this subtitle may be filed only in the United States District
Court for the District of Columbia.
(3) Limitation on scope of certain review.--Judicial review
of a Secretarial decision to conduct a lease sale under this
subtitle, including the environmental analysis thereof, shall
be limited to whether the Secretary has complied with the terms
of this subtitle and shall be based upon the administrative
record of that decision. The Secretary's identification of a
preferred course of action to enable leasing to proceed and the
Secretary's analysis of environmental effects under this
subtitle shall be presumed to be correct unless shown otherwise
by clear and convincing evidence to the contrary.
(b) Limitation on Other Review.--Actions of the Secretary with
respect to which review could have been obtained under this section
shall not be subject to judicial review in any civil or criminal
proceeding for enforcement.
SEC. 149. FEDERAL AND STATE DISTRIBUTION OF REVENUES.
(a) In General.--Notwithstanding any other provision of law, of the
amount of adjusted bonus, rental, and royalty revenues from Federal oil
and gas leasing and operations authorized under this subtitle--
(1) 50 percent shall be paid to the State of Alaska; and
(2) except as provided in section 152(d), 90 percent of the
balance shall be deposited into the American Renewable and
Alternative Energy Trust Fund established by section 321.
(b) Payments to Alaska.--Payments to the State of Alaska under this
section shall be made semiannually.
SEC. 150. RIGHTS-OF-WAY ACROSS THE COASTAL PLAIN.
(a) In General.--The Secretary shall issue rights-of-way and
easements across the Coastal Plain for the transportation of oil and
gas--
(1) except as provided in paragraph (2), under section 28
of the Mineral Leasing Act (30 U.S.C. 185), without regard to
title XI of the Alaska National Interest Lands Conservation Act
(30 U.S.C. 3161 et seq.); and
(2) under title XI of the Alaska National Interest Lands
Conservation Act (30 U.S.C. 3161 et seq.), for access
authorized by sections 1110 and 1111 of that Act (16 U.S.C.
3170 and 3171).
(b) Terms and Conditions.--The Secretary shall include in any
right-of-way or easement issued under subsection (a) such terms and
conditions as may be necessary to ensure that transportation of oil and
gas does not result in a significant adverse effect on the fish and
wildlife, subsistence resources, their habitat, and the environment of
the Coastal Plain, including requirements that facilities be sited or
designed so as to avoid unnecessary duplication of roads and pipelines.
(c) Regulations.--The Secretary shall include in regulations under
section 143(g) provisions granting rights-of-way and easements
described in subsection (a) of this section.
SEC. 151. CONVEYANCE.
In order to maximize Federal revenues by removing clouds on title
to lands and clarifying land ownership patterns within the Coastal
Plain, the Secretary, notwithstanding the provisions of section
1302(h)(2) of the Alaska National Interest Lands Conservation Act (16
U.S.C. 3192(h)(2)), shall convey--
(1) to the Kaktovik Inupiat Corporation the surface estate
of the lands described in paragraph 1 of Public Land Order
6959, to the extent necessary to fulfill the Corporation's
entitlement under sections 12 and 14 of the Alaska Native
Claims Settlement Act (43 U.S.C. 1611 and 1613) in accordance
with the terms and conditions of the Agreement between the
Department of the Interior, the United States Fish and Wildlife
Service, the Bureau of Land Management, and the Kaktovik
Inupiat Corporation effective January 22, 1993; and
(2) to the Arctic Slope Regional Corporation the remaining
subsurface estate to which it is entitled pursuant to the
August 9, 1983, agreement between the Arctic Slope Regional
Corporation and the United States of America.
SEC. 152. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.
(a) Financial Assistance Authorized.--
(1) In general.--The Secretary may use amounts available
from the Coastal Plain Local Government Impact Aid Assistance
Fund established by subsection (d) to provide timely financial
assistance to entities that are eligible under paragraph (2)
and that are directly impacted by the exploration for or
production of oil and gas on the Coastal Plain under this
subtitle.
(2) Eligible entities.--The North Slope Borough, the City
of Kaktovik, and any other borough, municipal subdivision,
village, or other community in the State of Alaska that is
directly impacted by exploration for, or the production of, oil
or gas on the Coastal Plain under this subtitle, as determined
by the Secretary, shall be eligible for financial assistance
under this section.
(b) Use of Assistance.--Financial assistance under this section may
be used only for--
(1) planning for mitigation of the potential effects of oil
and gas exploration and development on environmental, social,
cultural, recreational, and subsistence values;
(2) implementing mitigation plans and maintaining
mitigation projects;
(3) developing, carrying out, and maintaining projects and
programs that provide new or expanded public facilities and
services to address needs and problems associated with such
effects, including fire-fighting, police, water, waste
treatment, medivac, and medical services; and
(4) establishment of a coordination office, by the North
Slope Borough, in the City of Kaktovik, which shall--
(A) coordinate with and advise developers on local
conditions, impact, and history of the areas utilized
for development; and
(B) provide to the Committee on Natural Resources
of the House of Representatives and the Committee on
Energy and Natural Resources of the Senate an annual
report on the status of coordination between developers
and the communities affected by development.
(c) Application.--
(1) In general.--Any community that is eligible for
assistance under this section may submit an application for
such assistance to the Secretary, in such form and under such
procedures as the Secretary may prescribe by regulation.
(2) North slope borough communities.--A community located
in the North Slope Borough may apply for assistance under this
section either directly to the Secretary or through the North
Slope Borough.
(3) Application assistance.--The Secretary shall work
closely with and assist the North Slope Borough and other
communities eligible for assistance under this section in
developing and submitting applications for assistance under
this section.
(d) Establishment of Fund.--
(1) In general.--There is established in the Treasury the
Coastal Plain Local Government Impact Aid Assistance Fund.
(2) Use.--Amounts in the fund may be used only for
providing financial assistance under this section.
(3) Deposits.--Subject to paragraph (4), there shall be
deposited into the fund amounts received by the United States
as revenues derived from rents, bonuses, and royalties from
Federal leases and lease sales authorized under this subtitle.
(4) Limitation on deposits.--The total amount in the fund
may not exceed $11,000,000.
(5) Investment of balances.--The Secretary of the Treasury
shall invest amounts in the fund in interest bearing government
securities.
(e) Authorization of Appropriations.--To provide financial
assistance under this section there is authorized to be appropriated to
the Secretary from the Coastal Plain Local Government Impact Aid
Assistance Fund $5,000,000 for each fiscal year.
Subtitle C--Oil Shale
SEC. 161. OIL SHALE.
(a) Findings.--Congress finds that oil shale resources located
within the United States--
(1) total almost 2 trillion barrels of oil in place;
(2) are a strategically important domestic resource that
should be developed on an accelerated basis to reduce our
growing reliance on politically and economically unstable
sources of foreign oil imports;
(3) are one of the best resources available for advancing
American technology and creating American jobs; and
(4) will be a critically important component of the
Nation's transportation fuel sector in particular, by providing
a secure domestic source of aviation fuel for both commercial
and military uses.
(b) Additional Research and Development Lease Sales.--The Secretary
of the Interior shall hold a lease sale within 180 days after the date
of enactment of this Act offering an additional 10 parcels for lease
for research, development, and demonstration of oil shale resources,
under the terms offered in the solicitation of bids for such leases
published on January 15, 2009 (74 Fed. Reg. 10).
(c) Application of Regulations.--The oil shale management final
rules published by the Department of the Interior on November 18, 2008
(73 Fed. Reg. 223), shall apply to all commercial leasing for the
management of federally owned oil shale, and any associated minerals,
located on Federal lands.
(d) Reduced Payments To Ensure Production.--The Secretary of the
Interior may temporarily reduce royalties, fees, rentals, bonus, or
other payments for leases of Federal lands for the development and
production of oil shale resources as necessary to incentivize and
encourage development of such resources, if the Secretary determines
that the royalties, fees, rentals, bonus bids, and other payments
otherwise authorized by law are hindering production of such resources.
Subtitle D--Refinery Permit Process Schedule
SEC. 171. SHORT TITLE.
This subtitle may be cited as the ``Refinery Permit Process
Schedule Act''.
SEC. 172. DEFINITIONS.
For purposes of this subtitle--
(1) the term ``Administrator'' means the Administrator of
the Environmental Protection Agency;
(2) the term ``applicant'' means a person who (with the
approval of the governor of the State, or in the case of Native
American tribes or tribal territories the designated leader of
the tribe or tribal community, where the proposed refinery
would be located) is seeking a Federal refinery authorization;
(3) the term ``biomass'' has the meaning given that term in
section 932(a)(1) of the Energy Policy Act of 2005;
(4) the term ``Federal refinery authorization''--
(A) means any authorization required under Federal
law, whether administered by a Federal or State
administrative agency or official, with respect to
siting, construction, expansion, or operation of a
refinery; and
(B) includes any permits, licenses, special use
authorizations, certifications, opinions, or other
approvals required under Federal law with respect to
siting, construction, expansion, or operation of a
refinery;
(5) the term ``refinery'' means--
(A) a facility designed and operated to receive,
load, unload, store, transport, process, and refine
crude oil by any chemical or physical process,
including distillation, fluid catalytic cracking,
hydrocracking, coking, alkylation, etherification,
polymerization, catalytic reforming, isomerization,
hydrotreating, blending, and any combination thereof,
in order to produce gasoline or distillate;
(B) a facility designed and operated to receive,
load, unload, store, transport, process, and refine
coal by any chemical or physical process, including
liquefaction, in order to produce gasoline or diesel as
its primary output; or
(C) a facility designed and operated to receive,
load, unload, store, transport, process (including
biochemical, photochemical, and biotechnology
processes), and refine biomass in order to produce
biofuel; and
(6) the term ``State'' means a State, the District of
Columbia, the Commonwealth of Puerto Rico, and any other
territory or possession of the United States.
SEC. 173. STATE ASSISTANCE.
(a) State Assistance.--At the request of a governor of a State, or
in the case of Native American tribes or tribal territories the
designated leader of the tribe or tribal community, the Administrator
is authorized to provide financial assistance to that State or tribe or
tribal community to facilitate the hiring of additional personnel to
assist the State or tribe or tribal community with expertise in fields
relevant to consideration of Federal refinery authorizations.
(b) Other Assistance.--At the request of a governor of a State, or
in the case of Native American tribes or tribal territories the
designated leader of the tribe or tribal community, a Federal agency
responsible for a Federal refinery authorization shall provide
technical, legal, or other nonfinancial assistance to that State or
tribe or tribal community to facilitate its consideration of Federal
refinery authorizations.
SEC. 174. REFINERY PROCESS COORDINATION AND PROCEDURES.
(a) Appointment of Federal Coordinator.--
(1) In general.--The President shall appoint a Federal
coordinator to perform the responsibilities assigned to the
Federal coordinator under this subtitle.
(2) Other agencies.--Each Federal and State agency or
official required to provide a Federal refinery authorization
shall cooperate with the Federal coordinator.
(b) Federal Refinery Authorizations.--
(1) Meeting participants.--Not later than 30 days after
receiving a notification from an applicant that the applicant
is seeking a Federal refinery authorization pursuant to Federal
law, the Federal coordinator appointed under subsection (a)
shall convene a meeting of representatives from all Federal and
State agencies responsible for a Federal refinery authorization
with respect to the refinery. The governor of a State shall
identify each agency of that State that is responsible for a
Federal refinery authorization with respect to that refinery.
(2) Memorandum of agreement.--(A) Not later than 90 days
after receipt of a notification described in paragraph (1), the
Federal coordinator and the other participants at a meeting
convened under paragraph (1) shall establish a memorandum of
agreement setting forth the most expeditious coordinated
schedule possible for completion of all Federal refinery
authorizations with respect to the refinery, consistent with
the full substantive and procedural review required by Federal
law. If a Federal or State agency responsible for a Federal
refinery authorization with respect to the refinery is not
represented at such meeting, the Federal coordinator shall
ensure that the schedule accommodates those Federal refinery
authorizations, consistent with Federal law. In the event of
conflict among Federal refinery authorization scheduling
requirements, the requirements of the Environmental Protection
Agency shall be given priority.
(B) Not later than 15 days after completing the memorandum
of agreement, the Federal coordinator shall publish the
memorandum of agreement in the Federal Register.
(C) The Federal coordinator shall ensure that all parties
to the memorandum of agreement are working in good faith to
carry out the memorandum of agreement, and shall facilitate the
maintenance of the schedule established therein.
(c) Consolidated Record.--The Federal coordinator shall, with the
cooperation of Federal and State administrative agencies and officials,
maintain a complete consolidated record of all decisions made or
actions taken by the Federal coordinator or by a Federal administrative
agency or officer (or State administrative agency or officer acting
under delegated Federal authority) with respect to any Federal refinery
authorization. Such record shall be the record for judicial review
under subsection (d) of decisions made or actions taken by Federal and
State administrative agencies and officials, except that, if the Court
determines that the record does not contain sufficient information, the
Court may remand the proceeding to the Federal coordinator for further
development of the consolidated record.
(d) Remedies.--
(1) In general.--The United States District Court for the
district in which the proposed refinery is located shall have
exclusive jurisdiction over any civil action for the review of
the failure of an agency or official to act on a Federal
refinery authorization in accordance with the schedule
established pursuant to the memorandum of agreement.
(2) Standing.--If an applicant or a party to a memorandum
of agreement alleges that a failure to act described in
paragraph (1) has occurred and that such failure to act would
jeopardize timely completion of the entire schedule as
established in the memorandum of agreement, such applicant or
other party may bring a cause of action under this subsection.
(3) Court action.--If an action is brought under paragraph
(2), the Court shall review whether the parties to the
memorandum of agreement have been acting in good faith, whether
the applicant has been cooperating fully with the agencies that
are responsible for issuing a Federal refinery authorization,
and any other relevant materials in the consolidated record.
Taking into consideration those factors, if the Court finds
that a failure to act described in paragraph (1) has occurred,
and that such failure to act would jeopardize timely completion
of the entire schedule as established in the memorandum of
agreement, the Court shall establish a new schedule that is the
most expeditious coordinated schedule possible for completion
of proceedings, consistent with the full substantive and
procedural review required by Federal law. The court may issue
orders to enforce any schedule it establishes under this
paragraph.
(4) Federal coordinator's action.--When any civil action is
brought under this subsection, the Federal coordinator shall
immediately file with the Court the consolidated record
compiled by the Federal coordinator pursuant to subsection (c).
(5) Expedited review.--The Court shall set any civil action
brought under this subsection for expedited consideration.
SEC. 175. DESIGNATION OF CLOSED MILITARY BASES.
(a) Designation Requirement.--Not later than 90 days after the date
of enactment of this Act, the President shall designate no less than 3
closed military installations, or portions thereof, as potentially
suitable for the construction of a refinery. At least 1 such site shall
be designated as potentially suitable for construction of a refinery to
refine biomass in order to produce biofuel.
(b) Redevelopment Authority.--The redevelopment authority for each
installation designated under subsection (a), in preparing or revising
the redevelopment plan for the installation, shall consider the
feasibility and practicability of siting a refinery on the
installation.
(c) Management and Disposal of Real Property.--The Secretary of
Defense, in managing and disposing of real property at an installation
designated under subsection (a) pursuant to the base closure law
applicable to the installation, shall give substantial deference to the
recommendations of the redevelopment authority, as contained in the
redevelopment plan for the installation, regarding the siting of a
refinery on the installation. The management and disposal of real
property at a closed military installation or portion thereof found to
be suitable for the siting of a refinery under subsection (a) shall be
carried out in the manner provided by the base closure law applicable
to the installation.
(d) Definitions.--For purposes of this section--
(1) the term ``base closure law'' means the Defense Base
Closure and Realignment Act of 1990 (part A of title XXIX of
Public Law 101-510; 10 U.S.C. 2687 note) and title II of the
Defense Authorization Amendments and Base Closure and
Realignment Act (Public Law 100-526; 10 U.S.C. 2687 note); and
(2) the term ``closed military installation'' means a
military installation closed or approved for closure pursuant
to a base closure law.
SEC. 176. SAVINGS CLAUSE.
Nothing in this subtitle shall be construed to affect the
application of any environmental or other law, or to prevent any party
from bringing a cause of action under any environmental or other law,
including citizen suits.
SEC. 177. REFINERY REVITALIZATION REPEAL.
Subtitle H of title III of the Energy Policy Act of 2005 and the
items relating thereto in the table of contents of such Act are
repealed.
TITLE II--CONSERVATION AND EFFICIENCY
Subtitle A--Tax Incentives for Fuel Efficiency
SEC. 201. EXTENSION OF CREDIT FOR ALTERNATIVE FUEL VEHICLES.
Paragraph (4) of section 30B(j) of the Internal Revenue Code of
1986 is amended by striking ``December 31, 2010'' and inserting
``December 31, 2020''.
SEC. 202. EXTENSION OF ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY
CREDIT.
Paragraph (1) of section 30C(g) of the Internal Revenue Code of
1986 is amended--
(1) by striking ``hydrogen,'' and inserting ``hydrogen or
alternative fuels (as defined in section 30B(e)(4)(B)),'', and
(2) by striking ``December 31, 2014'' and inserting
``December 31, 2020''.
SEC. 203. EXTENSION OF CREDIT FOR NEW QUALIFIED PLUG-IN ELECTRIC DRIVE
MOTOR VEHICLES.
(a) In General.--Section 30D of the Internal Revenue Code of 1986
is amended by adding at the end the following new subsection:
``(g) Termination.--This section shall not apply to property placed
in service after December 31, 2020.''.
(b) Repeal of Limitation on Number of New Qualified Plug-In
Electric Drive Motor Vehicles Eligible for Credit.--Section 30D of such
Code, as amended by subsection (a), is amended by striking subsection
(e) and redesignating subsections (f) and (g) as subsections (e) and
(f), respectively.
(c) Conforming Amendments.--
(1) Section 1016(a)(37) of such Code is amended by striking
``section 30D(f)(1)'' and inserting ``section 30D(e)(1)''.
(2) Section 6501(m) of such Code is amended by striking
``section 30D(e)(4)'' and inserting ``section 30D(e)(4)''.
(d) Effective Date.--The amendments made by this section shall
apply to vehicles acquired after December 31, 2009.
Subtitle B--Tapping America's Ingenuity and Creativity
SEC. 211. DEFINITIONS.
In this subtitle:
(1) Administering entity.--The term ``administering
entity'' means the entity with which the Secretary enters into
an agreement under section 214(c).
(2) Department.--The term ``Department'' means the
Department of Energy.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Energy.
SEC. 212. STATEMENT OF POLICY.
It is the policy of the United States to provide incentives to
encourage the development and implementation of innovative energy
technologies and new energy sources that will reduce our reliance on
foreign energy.
SEC. 213. PRIZE AUTHORITY.
(a) In General.--The Secretary shall carry out a program to
competitively award cash prizes in conformity with this subtitle to
advance the research, development, demonstration, and commercial
application of innovative energy technologies and new energy sources.
(b) Advertising and Solicitation of Competitors.--
(1) Advertising.--The Secretary shall widely advertise
prize competitions to encourage broad participation in the
program carried out under subsection (a), including
individuals, universities, communities, and large and small
businesses.
(2) Announcement through federal register notice.--The
Secretary shall announce each prize competition by publishing a
notice in the Federal Register. This notice shall include
essential elements of the competition such as the subject of
the competition, the duration of the competition, the
eligibility requirements for participation in the competition,
the process for participants to register for the competition,
the amount of the prize, and the criteria for awarding the
prize.
(c) Administering the Competition.--The Secretary may enter into an
agreement with a private, nonprofit entity to administer the prize
competitions, subject to the provisions of this subtitle. The
administering entity shall perform the following functions:
(1) Advertise the competition and its results.
(2) Raise funds from private entities and individuals to
pay for administrative costs and cash prizes.
(3) Develop, in consultation with and subject to the final
approval of the Secretary, criteria to select winners based
upon the goal of safely and adequately storing nuclear used
fuel.
(4) Determine, in consultation with and subject to the
final approval of the Secretary, the appropriate amount of the
awards.
(5) Protect against the administering entity's unauthorized
use or disclosure of a registered participant's intellectual
property, trade secrets, and confidential business information.
Any information properly identified as trade secrets or
confidential business information that is submitted by a
participant as part of a competitive program under this
subtitle may be withheld from public disclosure.
(6) Develop and promulgate sufficient rules to define the
parameters of designing and proposing innovative energy
technologies and new energy sources with input from industry,
citizens, and corporations familiar with such activities.
(d) Funding Sources.--Prizes under this subtitle may consist of
Federal appropriated funds, funds provided by the administering entity,
or funds raised through grants or donations. The Secretary may accept
funds from other Federal agencies for such cash prizes and,
notwithstanding section 3302(b) of title 31, United States Code, may
use such funds for the cash prize program. Other than publication of
the names of prize sponsors, the Secretary may not give any special
consideration to any private sector entity or individual in return for
a donation to the Secretary or administering entity.
(e) Announcement of Prizes.--The Secretary may not publish a notice
required by subsection (b)(2) until all the funds needed to pay out the
announced amount of the prize have been appropriated to the Department
or the Department has received from the administering entity a written
commitment to provide all necessary funds.
SEC. 214. ELIGIBILITY.
To be eligible to win a prize under this subtitle, an individual or
entity--
(1) shall notify the administering entity of intent to
submit ideas and intent to collect the prize upon selection;
(2) shall comply with all the requirements stated in the
Federal Register notice required under section 213(b)(2);
(3) in the case of a private entity, shall be incorporated
in and maintain a primary place of business in the United
States, and in the case of an individual, whether participating
singly or in a group, shall be a citizen of the United States;
(4) shall not be a Federal entity, a Federal employee
acting within the scope of his or her employment, or an
employee of a national laboratory acting within the scope of
employment;
(5) shall not use Federal funding or other Federal
resources to compete for the prize; and
(6) shall not be an entity acting on behalf of any foreign
government or agent.
SEC. 215. INTELLECTUAL PROPERTY.
The Federal Government shall not, by virtue of offering or awarding
a prize under this subtitle, be entitled to any intellectual property
rights derived as a consequence of, or in direct relation to, the
participation by a registered participant in a competition authorized
by this subtitle. This section shall not be construed to prevent the
Federal Government from negotiating a license for the use of
intellectual property developed for a prize competition under this
subtitle. The Federal Government may seek assurances that technologies
for which prizes are awarded under this subtitle are offered for
commercialization in the event an award recipient does not take, or is
not expected to take within a reasonable time, effective steps to
achieve practical application of the technology.
SEC. 216. WAIVER OF LIABILITY.
The Secretary may require registered participants to waive claims
against the Federal Government and the administering entity (except
claims for willful misconduct) for any injury, death, damage, or loss
of property, revenue, or profits arising from the registered
participants' participation in a competition under this subtitle. The
Secretary shall give notice of any waiver required under this section
in the notice required by section 213(b)(2). The Secretary may not
require a registered participant to waive claims against the
administering entity arising out of the unauthorized use or disclosure
by the administering entity of the registered participant's
intellectual property, trade secrets, or confidential business
information.
SEC. 217. AUTHORIZATION OF APPROPRIATIONS.
(a) Awards.--Forty percent of amounts in the American Energy Trust
Fund shall be available without further appropriation to carry out
specified provisions of this section.
(b) Treatment of Awards.--Amounts received pursuant to an award
under this subtitle may not be taxed by any Federal, State, or local
authority.
(c) Administration.--In addition to the amounts authorized under
subsection (a), there are authorized to be appropriated to the
Secretary for each of fiscal years 2009 through 2020 $2,000,000 for the
administrative costs of carrying out this subtitle.
(d) Carryover of Funds.--Funds appropriated for prize awards under
this subtitle shall remain available until expended and may be
transferred, reprogrammed, or expended for other purposes only after
the expiration of 11 fiscal years after the fiscal year for which the
funds were originally appropriated. No provision in this subtitle
permits obligation or payment of funds in violation of section 1341 of
title 31, United States Code.
SEC. 218. NEXT GENERATION AUTOMOBILE PRIZE PROGRAM.
The Secretary of Energy shall establish a program to award a prize
in the amount of $500,000,000 to the first automobile manufacturer
incorporated in the United States to manufacture and sell in the United
States 50,000 midsized sedan automobiles which operate on gasoline and
can travel 100 miles per gallon.
SEC. 219. ADVANCED BATTERY MANUFACTURING INCENTIVE PROGRAM.
(a) Definitions.--In this section:
(1) Advanced battery.--The term ``advanced battery'' means
an electrical storage device suitable for vehicle applications.
(2) Engineering integration costs.--The term ``engineering
integration costs'' includes the cost of engineering tasks
relating to--
(A) incorporation of qualifying components into the
design of advanced batteries; and
(B) design of tooling and equipment and developing
manufacturing processes and material suppliers for
production facilities that produce qualifying
components or advanced batteries.
(b) Advanced Battery Manufacturing Facility.--The Secretary shall
provide facility funding awards under this section to advanced battery
manufacturers to pay not more than 30 percent of the cost of
reequipping, expanding, or establishing a manufacturing facility in the
United States to produce advanced batteries.
(c) Period of Availability.--An award under subsection (b) shall
apply to--
(1) facilities and equipment placed in service before
December 30, 2020; and
(2) engineering integration costs incurred during the
period beginning on the date of enactment of this Act and
ending on December 30, 2020.
(d) Direct Loan Program.--
(1) In general.--Not later than 1 year after the date of
enactment of this subtitle, and subject to the availability of
appropriated funds, the Secretary shall carry out a program to
provide a total of not more than $100,000,000 in loans to
eligible individuals and entities (as determined by the
Secretary) for the costs of activities described in subsection
(b).
(2) Selection of eligible projects.--The Secretary shall
select eligible projects to receive loans under this subsection
in cases in which, as determined by the Secretary, the award
recipient--
(A) is financially viable without the receipt of
additional Federal funding associated with the proposed
project;
(B) will provide sufficient information to the
Secretary for the Secretary to ensure that the
qualified investment is expended efficiently and
effectively; and
(C) has met such other criteria as may be
established and published by the Secretary.
(3) Rates, terms, and repayment of loans.--A loan provided
under this subsection--
(A) shall have an interest rate that, as of the
date on which the loan is made, is equal to the cost of
funds to the Department of the Treasury for obligations
of comparable maturity;
(B) shall have a term equal to the lesser of--
(i) the projected life, in years, of the
eligible project to be carried out using funds
from the loan, as determined by the Secretary;
and
(ii) 25 years;
(C) may be subject to a deferral in repayment for
not more than 5 years after the date on which the
eligible project carried out using funds from the loan
first begins operations, as determined by the
Secretary; and
(D) shall be made by the Federal Financing Bank.
(e) Fees.--The cost of administering a loan made under this section
shall not exceed $100,000.
(f) Set Aside for Small Manufacturers.--
(1) Definition of covered firm.--In this subsection, the
term ``covered firm'' means a firm that--
(A) employs fewer than 500 individuals; and
(B) manufactures automobiles or components of
automobiles.
(2) Set aside.--Of the amount of funds used to provide
awards for each fiscal year under subsection (b), the Secretary
shall use not less than 10 percent to provide awards to covered
firms or consortia led by a covered firm.
(g) Authorization of Appropriations.--There are authorized to be
appropriated from the American Energy Trust Fund such sums as are
necessary to carry out this section for each of fiscal years 2009
through 2013.
Subtitle C--Home and Business Tax Incentives
SEC. 221. EXTENSION OF CREDIT FOR ENERGY EFFICIENT APPLIANCES.
(a) In General.--Subsection (b) of section 45M of the Internal
Revenue Code of 1986 (relating to applicable amount) is amended--
(1) in paragraph (1)--
(A) by striking ``2008 or 2009'' in subparagraph
(A) and inserting ``2008, 2009, 2010, 2011, or 2012'',
and
(B) by striking ``2008, 2009, or 2010'' in
subparagraph (B) and inserting ``2008, 2009, 2010,
2011, 2012, or 2013'',
(2) in paragraph (2)--
(A) by striking ``2008 or 2009'' in subparagraph
(B) and inserting ``2008, 2009, 2010, 2011, or 2012'',
(B) by striking ``2008, 2009, or 2010'' in
subparagraph (C) and inserting ``2008, 2009, 2010,
2011, 2012, or 2013'', and
(C) by striking ``2008, 2009, or 2010'' in
subparagraph (D) and inserting ``2008, 2009, 2010,
2011, 2012, or 2013'', and
(3) in paragraph (3)--
(A) by striking ``2008 or 2009'' in subparagraph
(B) and inserting ``2008, 2009, 2010, 2011, or 2012'',
(B) by striking ``2008, 2009, or 2010'' in
subparagraph (C) and inserting ``2008, 2009, 2010,
2011, 2012, or 2013'', and
(C) by striking ``2008, 2009, or 2010'' in
subparagraph (D) and inserting ``2008, 2009, 2010,
2011, 2012, or 2013''.
(b) Increase in Aggregate Credit Amount Allowed.--Paragraph (1) of
section 45M(e) of such Code (relating to aggregate credit amount
allowed) is amended by striking ``$75,000,000'' and inserting
``$100,000,000''.
(c) Effective Date.--The amendments made by this section shall
apply to appliances produced after December 31, 2009.
SEC. 222. EXTENSION OF CREDIT FOR NONBUSINESS ENERGY PROPERTY.
(a) In General.--Section 25C(g) of the Internal Revenue Code of
1986 (relating to termination) is amended by striking ``December 31,
2010'' and inserting ``December 31, 2020''.
(b) Effective Date.--The amendment made by this section shall apply
to property placed in service after December 31, 2007.
SEC. 223. EXTENSION OF CREDIT FOR RESIDENTIAL ENERGY EFFICIENT
PROPERTY.
Section 25D(g) of the Internal Revenue Code of 1986 (relating to
termination) is amended by striking ``December 31, 2016'' and inserting
``December 31, 2020''.
SEC. 224. EXTENSION OF NEW ENERGY EFFICIENT HOME CREDIT.
Subsection (g) of section 45L of the Internal Revenue Code of 1986
(relating to termination) is amended by striking ``December 31, 2009''
and inserting ``December 31, 2020''.
SEC. 225. EXTENSION OF ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
Section 179D(h) of the Internal Revenue Code of 1986 (relating to
termination) is amended by striking ``December 31, 2013'' and inserting
``December 31, 2020''.
SEC. 226. EXTENSION OF SPECIAL RULE TO IMPLEMENT FERC AND STATE
ELECTRIC RESTRUCTURING POLICY.
(a) In General.--Paragraph (3) of section 451(i) of the Internal
Revenue Code of 1986 is amended by striking ``January 1, 2008'' and
inserting ``January 1, 2021''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to transactions after December 31, 2008.
SEC. 227. HOME ENERGY AUDITS.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 25D the following new section:
``SEC. 25E. HOME ENERGY AUDITS.
``(a) In General.--In the case of an individual, there shall be
allowed as a credit against the tax imposed by this chapter for the
taxable year an amount equal to 50 percent of the amount of qualified
energy audit paid or incurred by the taxpayer during the taxable year.
``(b) Limitations.--
``(1) Dollar limitation.--The amount allowed as a credit
under subsection (a) with respect to a residence of the
taxpayer for a taxable year shall not exceed $400.
``(2) Limitation based on amount of tax.--In the case of
any taxable year to which section 26(a)(2) does not apply, the
credit allowed under subsection (a) shall not exceed the excess
of--
``(A) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(B) the sum of the credits allowable under this
subpart (other than this section) and section 27 for
the taxable year.
``(c) Qualified Energy Audit.--For purposes of this section, the
term `qualified energy audit' means an energy audit of the principal
residence of the taxpayer performed by a qualified energy auditor
through a comprehensive site visit. Such audit may include a blower
door test, an infra-red camera test, and a furnace combustion
efficiency test. In addition, such audit shall include such substitute
tests for the tests specified in the preceding sentence, and such
additional tests, as the Secretary may by regulation require. A
principal residence shall not be taken into consideration under this
subparagraph unless such residence is located in the United States.
``(d) Principal Residence.--For purposes of this section, the term
`principal residence' has the same meaning as when used in section 121.
``(e) Qualified Energy Auditor.--
``(1) In general.--The Secretary shall specify by
regulations the qualifications required to be a qualified
energy auditor for purposes of this section. Such regulations
shall include rules prohibiting conflicts-of-interest,
including the disallowance of commissions or other payments
based on goods or non-audit services purchased by the taxpayer
from the auditor.
``(2) Certification.--The Secretary shall prescribe the
procedures and methods for certifying that an auditor is a
qualified energy auditor. To the maximum extent practicable,
such procedures and methods shall provide for a variety of
sources to obtain certifications.''.
(b) Conforming Amendments.--
(1) Section 23(b)(4)(B) of the Internal Revenue Code of
1986 is amended by striking ``section 25D'' and inserting
``sections 25D and 25E''.
(2) Section 23(c)(1) of such Code is amended by striking
``25D and'' and inserting ``25D, 25E, and''.
(3) Section 24(b)(3)(B) of such Code is amended by
inserting ``25E,'' after ``25D,''.
(4) Clauses (i) and (ii) of section 25(e)(1)(C) of such
Code are each amended by inserting ``25E,'' after ``25D,''.
(5) Section 25B(g)(2) of such Code is amended by inserting
``25E,'' after ``25D,''.
(6) Section 25D(c)(1)(B) of such Code is amended by
inserting ``and section 25E'' after ``this section''.
(7) Section 25D(c)(2)(A) of such Code is amended by
inserting ``and section 25E'' after ``this section''.
(8) The table of sections for subpart A of part IV of
subchapter A chapter 1 of such Code is amended by inserting
after the item relating to section 25D the following new item:
``Sec. 25E. Home energy audits.''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to amounts paid or incurred in taxable years beginning
after the date of the enactment of this Act.
(2) Application of egtrra sunset.--The amendments made by
paragraphs (1) and (3) of subsection (b) shall be subject to
title IX of the Economic Growth and Tax Relief Reconciliation
Act of 2001 in the same manner as the provisions of such Act to
which such amendments relate.
SEC. 228. ACCELERATED RECOVERY PERIOD FOR DEPRECIATION OF SMART METERS.
(a) In General.--Section 168(e)(3)(B) of the Internal Revenue Code
of 1986 is amended by striking ``and'' at the end of clause (vi), by
striking the period at the end of clause (vii) and inserting ``, and'',
and by inserting after clause (vii) the following new clause:
``(viii) any qualified smart electric
meter.''.
(b) Conforming Amendment.--Section 168(e)(3)(D) of such Code is
amended by striking clause (iii) and redesignating clause (iv) as
clause (iii).
(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.
TITLE III--NEW AND EXPANDING TECHNOLOGIES
Subtitle A--Alternative Fuels
SEC. 301. REPEAL.
Section 526 of the Energy Independence and Security Act of 2007 (42
U.S.C. 17142) is repealed.
SEC. 302. GOVERNMENT AUCTION OF LONG-TERM PUT OPTION CONTRACTS ON COAL-
TO-LIQUID FUEL PRODUCED BY QUALIFIED COAL-TO-LIQUID
FACILITIES.
(a) In General.--The Secretary shall, from time to time, auction to
the public coal-to-liquid fuel put option contracts having expiration
dates of 5 years, 10 years, 15 years, or 20 years.
(b) Consultation With Secretary of Energy.--The Secretary shall
consult with the Secretary of Energy regarding--
(1) the frequency of the auctions;
(2) the strike prices specified in the contracts;
(3) the number of contracts to be auctioned with a given
strike price and expiration date; and
(4) the capacity of existing or planned facilities to
produce coal-to-liquid fuel.
(c) Definitions.--In this section:
(1) Coal-to-liquid fuel.--The term ``coal-to-liquid fuel''
means any transportation-grade liquid fuel derived primarily
from coal (including peat) and produced at a qualified coal-to-
liquid facility.
(2) Coal-to-liquid put option contract.--The term ``coal-
to-liquid put option contract'' means a contract, written by
the Secretary, which--
(A) gives the holder the right (but not the
obligation) to sell to the Government of the United
States a certain quantity of a specific type of coal-
to-liquid fuel produced by a qualified coal-to-liquid
facility specified in the contract, at a strike price
specified in the contract, on or before an expiration
date specified in the contract; and
(B) is transferable by the holder to any other
entity.
(3) Qualified coal-to-liquid facility.--The term
``qualified coal-to-liquid facility'' means a manufacturing
facility that has the capacity to produce at least 10,000
barrels per day of transportation grade liquid fuels from a
feedstock that is primarily domestic coal (including peat and
any property which allows for the capture, transportation, or
sequestration of by-products resulting from such process,
including carbon emissions).
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(5) Strike price.--The term ``strike price'' means, with
respect to a put option contract, the price at which the holder
of the contract has the right to sell the fuel which is the
subject of the contract.
(d) Regulations.--The Secretary shall prescribe such regulations as
may be necessary to carry out this section.
(e) Effective Date.--This section shall take effect 1 year after
the date of the enactment of this Act.
SEC. 303. STANDBY LOANS FOR QUALIFYING COAL-TO-LIQUIDS PROJECTS.
Section 1702 of the Energy Policy Act of 2005 (42 U.S.C. 16512) is
amended by adding at the end the following new subsection:
``(k) Standby Loans for Qualifying CTL Projects.--
``(1) Definitions.--For purposes of this subsection:
``(A) Cap price.--The term `cap price' means a
market price specified in the standby loan agreement
above which the project is required to make payments to
the United States.
``(B) Full term.--The term `full term' means the
full term of a standby loan agreement, as specified in
the agreement, which shall not exceed the lesser of 30
years or 90 percent of the projected useful life of the
project (as determined by the Secretary).
``(C) Market price.--The term `market price' means
the average quarterly price of a petroleum price index
specified in the standby loan agreement.
``(D) Minimum price.--The term `minimum price'
means a market price specified in the standby loan
agreement below which the United States is obligated to
make disbursements to the project.
``(E) Output.--The term `output' means some or all
of the liquid or gaseous transportation fuels produced
from the project, as specified in the loan agreement.
``(F) Primary term.--The term `primary term' means
the initial term of a standby loan agreement, as
specified in the agreement, which shall not exceed the
lesser of 20 years or 75 percent of the projected
useful life of the project (as determined by the
Secretary).
``(G) Qualifying ctl project.--The term `qualifying
CTL project' means--
``(i) a commercial-scale project that
converts coal to one or more liquid or gaseous
transportation fuels; or
``(ii) not more than one project at a
facility that converts petroleum refinery waste
products, including petroleum coke, into one or
more liquids or gaseous transportation fuels,
that demonstrates the capture, and sequestration or
disposal or use of, the carbon dioxide produced in the
conversion process, and that, on the basis of a carbon
dioxide sequestration plan prepared by the applicant,
is certified by the Administrator of the Environmental
Protection Agency, in consultation with the Secretary,
as producing fuel with life cycle carbon dioxide
emissions at or below the average life cycle carbon
dioxide emissions for the same type of fuel produced at
traditional petroleum based facilities with similar
annual capacities.
``(H) Standby loan agreement.--The term `standby
loan agreement' means a loan agreement entered into
under paragraph (2).
``(2) Standby loans.--
``(A) Loan authority.--The Secretary may enter into
standby loan agreements with not more than six
qualifying CTL projects, at least one of which shall be
a project jointly or in part owned by two or more small
coal producers. Such an agreement--
``(i) shall provide that the Secretary will
make a direct loan (within the meaning of
section 502(1) of the Federal Credit Reform Act
of 1990) to the qualifying CTL project; and
``(ii) shall set a cap price and a minimum
price for the primary term of the agreement.
``(B) Loan disbursements.--Such a loan shall be
disbursed during the primary term of such agreement
whenever the market price falls below the minimum
price. The amount of such disbursements in any calendar
quarter shall be equal to the excess of the minimum
price over the market price, times the output of the
project (but not more than a total level of
disbursements specified in the agreement).
``(C) Loan repayments.--The Secretary shall
establish terms and conditions, including interest
rates and amortization schedules, for the repayment of
such loan within the full term of the agreement,
subject to the following limitations:
``(i) If in any calendar quarter during the
primary term of the agreement the market price
is less than the cap price, the project may
elect to defer some or all of its repayment
obligations due in that quarter. Any unpaid
obligations will continue to accrue interest.
``(ii) If in any calendar quarter during
the primary term of the agreement the market
price is greater than the cap price, the
project shall meet its scheduled repayment
obligation plus deferred repayment obligations,
but shall not be required to pay in that
quarter an amount that is more than the excess
of the market price over the cap price, times
the output of the project.
``(iii) At the end of the primary term of
the agreement, the cumulative amount of any
deferred repayment obligations, together with
accrued interest, shall be amortized (with
interest) over the remainder of the full term
of the agreement.
``(3) Profit-sharing.--The Secretary is authorized to enter
into a profit-sharing agreement with the project at the time
the standby loan agreement is executed. Under such an
agreement, if the market price exceeds the cap price in a
calendar quarter, a profit-sharing payment shall be made for
that quarter, in an amount equal to--
``(A) the excess of the market price over the cap
price, times the output of the project; less
``(B) any loan repayments made for the calendar
quarter.
``(4) Compliance with federal credit reform act.--
``(A) Upfront payment of cost of loan.--No standby
loan agreement may be entered into under this
subsection unless the project makes a payment to the
United States that the Office of Management and Budget
determines is equal to the cost of such loan
(determined under 502(5)(B) of the Federal Credit
Reform Act of 1990). Such payment shall be made at the
time the standby loan agreement is executed.
``(B) Minimization of risk to the government.--In
making the determination of the cost of the loan for
purposes of setting the payment for a standby loan
under subparagraph (A), the Secretary and the Office of
Management and Budget shall take into consideration the
extent to which the minimum price and the cap price
reflect historical patterns of volatility in actual oil
prices relative to projections of future oil prices,
based upon publicly available data from the Energy
Information Administration, and employing statistical
methods and analyses that are appropriate for the
analysis of volatility in energy prices.
``(C) Treatment of payments.--The value to the
United States of a payment under subparagraph (A) and
any profit-sharing payments under paragraph (3) shall
be taken into account for purposes of section
502(5)(B)(iii) of the Federal Credit Reform Act of 1990
in determining the cost to the Federal Government of a
standby loan made under this subsection. If a standby
loan has no cost to the Federal Government, the
requirements of section 504(b) of such Act shall be
deemed to be satisfied.
``(5) Other provisions.--
``(A) No double benefit.--A project receiving a
loan under this subsection may not, during the primary
term of the loan agreement, receive a Federal loan
guarantee under subsection (a) of this section, or
under other laws.
``(B) Subrogation, etc.--Subsections (g)(2)
(relating to subrogation), (h) (relating to fees), and
(j) (relating to full faith and credit) shall apply to
standby loans under this subsection to the same extent
they apply to loan guarantees.''.
Subtitle B--Tax Provisions
SEC. 311. EXTENSION OF RENEWABLE ELECTRICITY, REFINED COAL, AND INDIAN
COAL PRODUCTION CREDIT.
(a) Credit Made Permanent.--
(1) In general.--Subsection (d) of section 45 of the
Internal Revenue Code of 1986 (relating to qualified
facilities) is amended--
(A) by striking ``and before January 1, 2014'' each
place it occurs,
(B) by striking ``, and before January 1, 2013'' in
paragraph (1), and
(C) by striking ``before January 1, 2009'' in
paragraph (10).
(2) Open-loop biomass facilities.--Subparagraph (A) of
section 45(d)(3) of such Code is amended to read as follows:
``(A) In general.--In the case of a facility using
open-loop biomass to produce electricity, the term
`qualified facility' means any facility owned by the
taxpayer which is originally placed in service after
October 22, 2004.''.
(3) Effective date.--The amendments made by this subsection
shall apply to electricity produced and sold after December 31,
2009, in taxable years ending after such date.
(b) Sales of Net Electricity to Regulated Public Utilities Treated
as Sales to Unrelated Persons.--Paragraph (4) of section 45(e) of such
Code is amended by adding at the end the following new sentence: ``The
net amount of electricity sold by any taxpayer to a regulated public
utility (as defined in section 7701(a)(33)) shall be treated as sold to
an unrelated person.''.
(c) Allowance Against Alternative Minimum Tax.--
(1) In general.--Clause (iii) of section 38(c)(4)(B) of
such Code (relating to specified credits) is amended by
striking ``produced--'' and all that follows and inserting
``produced at a facility which is originally placed in service
after the date of the enactment of this paragraph.''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply to taxable years beginning after the date of the
enactment of this Act.
SEC. 312. EXTENSION OF ENERGY CREDIT.
(a) Solar Energy Property.--Paragraphs (2)(A)(i)(II) and (3)(A)(ii)
of section 48(a) of the Internal Revenue Code of 1986 (relating to
energy credit) are each amended by striking ``but only with respect to
periods ending before January 1, 2017''.
(b) Fuel Cell Property.--Section 48(c)(1) of such Code (relating to
qualified fuel cell property) is amended by striking subparagraph (D).
(c) Microturbine Property.--Subparagraph (D) of section 48(c)(2) of
the Internal Revenue Code of 1986 (relating to qualified microturbine
property) is amended by striking ``December 31, 2016'' and inserting
``December 31, 2020''.
SEC. 313. EXTENSION AND MODIFICATION OF CREDIT FOR CLEAN RENEWABLE
ENERGY BONDS.
(a) Extension.--Section 54(m) of the Internal Revenue Code of 1986
(relating to termination) is amended by striking ``December 31, 2009''
and inserting ``December 31, 2020''.
(b) Increase in National Limitation.--Section 54(f) of such Code
(relating to limitation on amount of bonds designated) is amended--
(1) by striking ``$1,200,000,000'' in paragraph (1) and
inserting ``$1,600,000,000'', and
(2) by striking ``$750,000,000'' in paragraph (2) and
inserting ``$1,000,000,000''.
(c) Modification of Ratable Principal Amortization Requirement.--
(1) In general.--Paragraph (4) of section 54(l) of such
Code is amended to read as follows:
``(4) Ratable principal amortization required.--A bond
shall not be treated as a clean renewable energy bond unless it
is part of an issue which provides for an equal amount of
principal to be paid by the qualified issuer during each 12-
month period that the issue is outstanding (other than the
first 12-month period).''.
(2) Technical amendment.--The third sentence of section
54(e)(2) of such Code is amended by striking ``subsection
(l)(6)'' and inserting ``subsection (l)(4)''.
(d) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
SEC. 314. EXTENSION OF CREDITS FOR BIODIESEL AND RENEWABLE DIESEL.
(a) In General.--Sections 40A(g), 6426(c)(6), and 6427(e)(6)(B) of
the Internal Revenue Code of 1986 are each amended by striking
``December 31, 2009'' and inserting ``December 31, 2020''.
(b) Effective Date.--The amendments made by this section shall
apply to fuel produced, and sold or used, after December 31, 2009.
Subtitle C--American Renewable and Alternative Energy Trust Fund
SEC. 321. AMERICAN RENEWABLE AND ALTERNATIVE ENERGY TRUST FUND.
(a) Establishment of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the
``American Renewable and Alternative Energy Trust Fund'', consisting of
such amounts as may be transferred to the American Renewable and
Alternative Energy Trust Fund as provided in section 149 and the
amendments made by section 113 of this Act.
(b) Expenditures From American Renewable and Alternative Energy
Trust Fund.--
(1) In general.--Amounts in the American Renewable and
Alternative Energy Trust Fund shall be available without
further appropriation to carry out specified provisions of the
Energy Policy Act of 2005 (Public Law 109-58; in this section
referred to as ``EPAct2005'') and the Energy Independence and
Security Act of 2007 (Public Law 110-140; in this section
referred to as ``EISAct2007''), as follows:
(A) Grants to improve the commercial value of
forest biomass for electric energy, useful heat,
transportation fuels, and other commercial purposes,
section 210 of EPAct2005, 3 percent.
(B) Hydroelectric production incentives, section
242 of EPAct2005, 2 percent.
(C) Oil shale, tar sands, and other strategic
unconventional fuels, section 369 of EPAct2005, 3
percent.
(D) Clean Coal Power Initiative, section 401 of
EPAct2005, 7 percent.
(E) Solar and wind technologies, section 812 of
EPAct2005, 7 percent.
(F) Renewable Energy, section 931 of EPAct2005, 20
percent.
(G) Production incentives for cellulosic biofuels,
section 942 of EPAct2005, 2.5 percent.
(H) Coal and related technologies program, section
962 of EPAct2005, 4 percent.
(I) Methane hydrate research, section 968 of
EPAct2005, 2.5 percent.
(J) Incentives for Innovative Technologies, section
1704 of EPAct2005, 7 percent.
(K) Grants for production of advanced biofuels,
section 207 of EISAct2007, 16 percent.
(L) Photovoltaic demonstration program, section 607
EISAct2007, 2.5 percent.
(M) Geothermal Energy, title VI, subtitle B of
EISAct2007, 4 percent.
(N) Marine and Hydrokinetic Renewable Energy
Technologies, title VI, subtitle C of EISAct2007, 2.5
percent.
(O) Energy storage competitiveness, section 641 of
EISAct2007, 10 percent.
(P) Smart grid technology research, development,
and demonstration, section 1304 of EISAct2007, 7
percent.
(2) Apportionment of excess amount.--Notwithstanding
paragraph (1), any amounts allocated under paragraph (1) that
are in excess of the amounts authorized in the applicable cited
section or subtitle of EPAct2005 and EISAct2007 shall be
reallocated to the remaining sections and subtitles cited in
paragraph (1), up to the amounts otherwise authorized by law to
carry out such sections and subtitles, in proportion to the
amounts authorized by law to be appropriated for such other
sections and subtitles.
TITLE IV--NUCLEAR
SEC. 401. STREAMLINE THE REGULATORY PROCESS.
(a) Fast Track.--
(1) Public health and safety.--Nothing in this subsection
shall supersede, mitigate, detract from, or in anyway decrease
the Nuclear Regulatory Commission's ability to maintain the
highest possible levels of public health and safety standards
for nuclear facilities in the United States. No authority
granted by this subsection shall be executed in a manner that
jeopardizes, minimizes, reduces, or lessens public health and
safety standards.
(2) Streamlining combined construction and operating
license.--
(A) In general.--The Nuclear Regulatory Commission
shall establish and implement an expedited procedure
for issuing a Combined Construction and Operating
License for qualified new reactors.
(B) Qualifications.--To qualify for the expedited
procedure under this paragraph, an applicant shall--
(i) apply for construction of a reactor
based on a design approved by the Nuclear
Regulatory Commission;
(ii) construct the new reactor on a site
where an operating nuclear power plant already
exists;
(iii) establish to the satisfaction of the
Nuclear Regulatory Commission that there is
broad local public support for the project;
(iv) be an existing nuclear powerplant
owner or operator with a substantial record of
safe operations and be in good standing with
the Nuclear Regulatory Commission;
(v) submit a complete Combined Construction
and Operating License application; and
(vi) demonstrate sufficient financial
commitment to the project and preparedness to
proceed in earnest once the permit is issued,
as demonstrated by--
(I) the purchase of, or contract to
purchase, long-lead materials; or
(II) assured financing.
(C) Expedited procedure.--With respect to a license
for which the applicant has satisfied the requirements
of subparagraph (B) and seeks fast track consideration,
the Nuclear Regulatory Commission shall follow the
following procedures:
(i) Undertake a one year expedited
environmental review process.
(ii) Commence a one year public comment
period for comments on the application.
(iii) Expedite the technical review process
to that amount of time which is necessary to
efficiently issue Combined Construction and
Operating License permits without sacrificing
any aspect of public health or safety.
(D) Goals.--The Nuclear Regulatory Commission shall
present recommendations to Congress within 90 days of
the date of enactment of this Act for procedures that
would allow the Commission to pursue a transparent,
fact-based process in a nonadversarial environment
where it can make decisions based on sound science and
engineering as expeditiously as practicable. These
recommendations shall encompass an efficient process
that allows those parties that have standing to
participate in the proceedings to raise legitimate
concerns to be heard and resolved without undue delay.
(3) Nuclear steam supply system design certification.--The
Nuclear Regulatory Commission shall establish a schedule for
certification of a Nuclear Steam Supply System reactor that
maintains the highest levels of public health and safety. Such
schedule shall seek to reduce by one half the time necessary to
certify a reactor design. Such a schedule shall be presented to
Congress within one year of date of enactment of this Act.
(4) Technology neutral plant design specifications.--Within
one year of the date of enactment of this Act, the Nuclear
Regulatory Commission shall outline to the Congress an approach
that will allow the Nuclear Regulatory Commission to develop
technology-neutral guidelines for nuclear plant licensing in
the future that would allow for the more seamless entry of new
technologies into the marketplace.
(5) Additional funding and personnel resources.--Not later
than 90 days after the date of enactment of this Act, the
Nuclear Regulatory Commission shall transmit to the Congress a
request for such additional funding and personnel resources as
are necessary to carry out paragraphs (1) through (4).
(6) National laboratory support.--Each national laboratory
with expertise in the nuclear field shall, in coordination with
the Nuclear Regulatory Commission, dedicate personnel to
supporting either or both of the expedited design certification
under paragraph (3) or the expedited licensing procedures under
paragraph (2).
(7) Educational program funds.--To both support the
Nation's effort to efficiently license new nuclear power plants
and build the expertise and workforce necessary to regulate and
operate those plants, the Nuclear Regulatory Commission and the
Department of Energy shall direct educational funding to
programs to enhance or directly support the activities
authorized by this subsection.
(b) National Policy Goal.--It is the policy goal of the United
States to license 100 new nuclear reactors, or the megawatt equivalent,
by 2030, if there are a sufficient number of applicants.
(c) Mandatory Hearings for Uncontested License Applicants.--
(1) Sections 189A(1)(A) of the Atomic Energy Act of 1954 is
modified thus:
``(A) In any proceeding under this Act, for the
granting, suspending, revoking, or amending of any
license or construction permit, or application to
transfer control, and in any proceeding for the
issuance or modification of rules and regulations
dealing with the activities of licensees, and in any
proceeding for the payment of compensation, an award,
or royalties under section 153, 157, 186c., or 188, the
Commission shall grant a hearing upon the request of
any person whose interest may be affected by the
proceeding, and shall admit any such person as a party
to such proceeding. The Commission may, in the absence
of a request therefor by any person whose interest may
be affected, issue a construction permit, an operating
license or an amendment to a construction permit or an
amendment to an operating license without a hearing,
but upon thirty days' notice and publication once in
the Federal Register of its intent to do so. The
Commission may dispense with such thirty days' notice
and publication with respect to any application for an
amendment to a construction permit or an amendment to
an operating license upon a determination by the
Commission that the amendment involves no significant
hazards consideration.''.
(2) Section 185b of the Atomic Energy Act of 1954 is
modified thus:
``b. After any public hearing held under section 189a.(1)(A), the
Commission shall issue to the applicant a combined construction and
operating license if the application contains sufficient information to
support the issuance of a combined license and the Commission
determines that there is reasonable assurance that the facility will be
constructed and will operate in conformity with the license, the
provisions of this Act, and the Commission's rules and regulations. The
Commission shall identify within the combined license the inspections,
tests, and analyses, including those applicable to emergency planning,
that the licensee shall perform, and the acceptance criteria that, if
met, are necessary and sufficient to provide reasonable assurance that
the facility has been constructed and will be operated in conformity
with the license, the provisions of this Act, and the Commission's
rules and regulations. Following issuance of the combined license, the
Commission shall ensure that the prescribed inspections, tests, and
analyses are performed and, prior to operation of the facility, shall
find that the prescribed acceptance criteria are met. Any finding made
under this subsection shall not require a hearing except as provided in
section 189a.(1)(B).''.
SEC. 402. INCREASE THE SUPPLY OF URANIUM.
(a) Supply Disruption Mitigation Reserve.--The Secretary of Energy
shall create a uranium supply-disruption mitigation reserve. The Energy
Department shall undergo an audit to account for all unused materials
in its system that could be used to power commercial nuclear reactors.
Once accounted for, some portion, or all, of this resource shall be
allocated to be a temporary reserve of reactor fuel to protect against
a foreign supplier attempt to deny American energy producers access to
uranium fuel.
(b) Findings.--The Congress finds the following:
(1) It is necessary to preserve access to domestic uranium
reserves and resources in order to meet the United States
demand for clean noncarbon emitting energy. Doing so will
contribute to the Nation's effort to seek energy independence
and enhance our national and economic security.
(2) United States utilities currently use approximately
56,000,000 pounds of uranium each year. Meanwhile, total United
States uranium production is only approximately 3,000,000 to
4,000,000 pounds each year, or less than 10 percent of the
Nation's annual need.
(3) To meet the United States demand for uranium, the
United States imports uranium from Russia, Canada, Australia,
and Kazakhstan. In 2004, nearly 50 percent of imported uranium
came from Russia.
(4) American industry can easily produce 20,000,000 to
30,000,000 pounds of uranium each year from domestic resources.
(5) To produce those resources we must preserve access to
the Nation's uranium reserves and resources found within the
northern Arizona strip, Northwestern New Mexico, Wyoming, and
other parts of the United States.
(6) The Arizona strip region, located in the Utah-Arizona
border region, is estimated to contain a resource endowment of
375,000,000 pounds of uranium oxide (United States Geological
Survey Circular 1051), making it the second most important
uranium region in the United States after to Wyoming. The
energy potential of this quantity of uranium rivals the energy
equivalence of the total recoverable oil discovered at Prudhoe
Bay Alaska, the largest oil field in North America. This
quantity of uranium comprises over 40 percent of the Nation's
estimated uranium resource endowment, and Arizona Strip area
uranium is by far the highest grade uranium nationally.
Development of these resources would promote energy
independence and protect our national security.
(7) Development of these resources would prevent the United
States from being over reliant on less stable foreign sources
of uranium.
(8) The importance of developing these resources is crucial
as the rest of the world is embracing nuclear power, including
China, India, Russia, Europe, the Middle East, Japan, and
Korea, resulting in a exponential demand for known and
undiscovered uranium resources.
(c) Uranium Policy Summit.--
(1) In general.--The Secretary of the Interior, working
with the Secretary of Energy, shall convene a national summit
on uranium by no later than 180 days after the date of the
enactment of this Act, to produce a report for Congress by no
later than 1 year after the date of the enactment of this Act
that includes an assessment of the Nation's uranium resources
and provides policy recommendations to ensure access to these
resources for private sector development in an environmentally
responsible manner. A principle policy objective of the summit
and report shall be to domestically produce enough uranium to
meet 30 percent of our national uranium demand by 2030.
(2) Participants.--The national summit on uranium shall
include--
(A) representatives from mining, enrichment,
utility, and disposal sectors of the uranium industry;
and
(B) experts in hydrology, geology, mine
reclamation, and safety.
SEC. 403. RECYCLE AND SAFELY STORE SPENT NUCLEAR FUEL.
(a) High-Level Nuclear Waste Repository.--
(1) The Federal Government remains obliged to construct and
operate at least one high-level nuclear materials geologic
repository for the disposal of spent nuclear fuel and high-
level radioactive waste.
(2) The high-level nuclear waste repository site at Yucca
Mountain shall remain the site for the Nation's nuclear waste
repository unless it is deemed technologically or
scientifically unsuitable by the Nuclear Regulatory Commission
following full statutory review of the Department of Energy's
license application to construct the Yucca Mountain repository.
(3) The Nuclear Regulatory Commission shall continue to
review the Department of Energy's pending license application
to construct the nuclear waste repository at Yucca Mountain
until a determination is made on the merits of the application.
(4) In addition to pursuing approval of the license
application referenced in paragraph (3), the Secretary shall
undertake the following activities:
(A) Seeking all other necessary regulatory
approvals and permits to construct and operate the
Yucca Mountain repository.
(B) Conducting all necessary design and engineering
work to support construction of the repository.
(C) Undertaking all infrastructure activities
necessary to support the construction or operation of
the repository or transportation to the site of spent
nuclear fuel and high-level radioactive waste.
Infrastructure activities include, but are not limited
to, safety upgrades; site preparation; the construction
of a rail line to connect the Yucca Mountain site with
the national rail network, including any facilities to
facilitate rail operations; and construction, upgrade,
acquisition, or operation of electrical grids or
facilities, other utilities, communication facilities,
access roads, rail lines, and nonnuclear support
facilities.
(5) All statutory limitations on the amount of spent fuel
that can be placed in Yucca Mountain shall be removed and
replaced with new limits based on scientific and technical
analysis of the full capacity of Yucca Mountain for the storage
of spent nuclear fuel and high-level radioactive waste.
(b) Temporary Nuclear Fuel Storage Facilities.--The Secretary of
the Interior shall grant all necessary rights of way and land use
authorizations needed for a nuclear fuel storage facility if the State
and locality in which such facility is located reach an agreement with
a private entity. The Federal Government shall take title of the
contents of any such facility upon closure or decommissioning.
(c) Recycling.--
(1) Amendment.--Section 302 of the Nuclear Waste Policy Act
of 1982 (42 U.S.C. 10222) is amended--
(A) in subsection (d), by striking ``The Secretary
may'' and inserting ``Except as provided in subsection
(f), the Secretary may''; and
(B) by adding at the end the following new
subsection:
``(f) Recycling.--
``(1) In general.--Amounts in the Waste Fund shall be used
by the Secretary of Energy to make grants to or enter into
long-term contracts with private sector entities for the
recycling of spent nuclear fuel.
``(2) Competitive selection.--Grants and contracts
authorized under paragraph (1) shall be awarded on the basis a
competitive bidding process that--
``(A) maximizes the competitive efficiency of the
projects funded;
``(B) best serves the goal of reducing the amount
of waste requiring disposal under this Act; and
``(C) ensures adequate protection against the
proliferation of nuclear materials that could be used
in the manufacture of nuclear weapons.''.
(2) Prohibition.--The Administration is prohibited from
blocking or hindering spent nuclear fuel recycling activities.
(3) Rulemaking for licensing of spent nuclear fuel
recycling facilities.--
(A) Requirement.--The Nuclear Regulatory Commission
shall, as expeditiously as possible, but in no event
later than 2 years after the date of enactment of this
Act, complete a rulemaking establishing a process for
the licensing by the Nuclear Regulatory Commission,
under the Atomic Energy Act of 1954, of facilities for
the recycling of spent nuclear fuel.
(B) Funding.--Amounts in the Nuclear Waste Fund
established under section 302 of the Nuclear Waste
Policy Act of 1982 (42 U.S.C. 10222) shall be made
available to the Nuclear Regulatory Commission to cover
the costs of carrying out subparagraph (A) of this
paragraph.
SEC. 404. CONFIDENCE IN AVAILABILITY OF WASTE DISPOSAL.
Notwithstanding any other provision of law, in deciding whether to
permit the construction or operation of a nuclear reactor or any
related facilities, the Nuclear Regulatory Commission shall deem,
without further consideration, that sufficient capacity will be
available in a timely manner to dispose of spent nuclear fuel and high
level radioactive waste resulting from the operation of the reactor and
any related facilities.
SEC. 405. PREFERENTIAL TREATMENT FOR CERTAIN NUCLEAR REACTORS AND
RELATED ARTICLES.
(a) In General.--The President shall proclaim duty-free treatment
or other preferential treatment for any article described in subsection
(b) that is imported directly into the customs territory of the United
States if the President determines, after obtaining advice from the
International Trade Commission, that there is no domestic production of
such article.
(b) Article Described.--An article described in this subsection is
any article provided for in heading 8401 or 9902.84 of the Harmonized
Tariff Schedule of the United States (relating to nuclear reactors;
fuel elements (cartridges), non-irradiated, for nuclear reactors;
machinery and apparatus for isotopic separation; parts thereof).
(c) Withdrawal, Suspension, or Limitation of Preferential
Treatment.--The President may withdraw, suspend, or limit the
application of duty-free treatment or other preferential treatment
under this section for any article described in subsection (b) with
respect to which duty-free treatment has been proclaimed under
subsection (a).
(d) Termination of Preferential Treatment.--No duty-free treatment
or other preferential treatment extended under this section shall
remain in effect after 5 years.
SEC. 406. NATIONAL NUCLEAR ENERGY COUNCIL.
(a) In General.--
(1) The Secretary of Energy shall establish a National
Nuclear Energy Council (hereinafter the ``Council'').
(2) The National Nuclear Energy Council shall be subject to
the requirements of the Federal Advisory Committee Act (5
U.S.C. appendix 2).
(b) Purpose.--The National Nuclear Energy Council shall--
(1) serve in an advisory capacity to the Secretary of
Energy regarding nuclear energy on matters submitted to the
Council by the Secretary of Energy;
(2) advise, inform, and make recommendations to the
Secretary of Energy with respect to any matter relating to
nuclear energy;
(3) help nuclear energy related investors to navigate the
Federal bureaucracy to efficiently bring their products and
services to the marketplace; and
(4) not participate in any research and development or
commercialization activities.
(c) Membership and Organization.--
(1) The members of the Council shall be appointed by the
Secretary of Energy.
(2) The Council may establish such study and administrative
committees as it may deem appropriate. Study committees shall
only assist the Council in preparing its advice, information,
or recommendations to the Secretary of Energy. Administrative
committees shall be formed solely for the purpose of assisting
the Council or its Chairman in the management of the internal
affairs of the Council.
(3) The officers of the Council shall consist of a
Chairman, a Vice Chairman, and such other officers as may be
approved by the Council. The Chairman and Vice Chairman must be
members of the Council and shall receive no compensation for
service as officers of the Council.
(4) The Secretary of Energy shall be Cochairman of the
Council. If the Secretary of Energy designates a full-time,
salaried official of the Department of Energy as his alternate,
such alternate may exercise any duties of the Secretary of
Energy and may perform any function on the Council otherwise
reserved for the Secretary of Energy.
(5) The Chairman and the Vice Chairman shall be elected by
the Council at its organizational meeting to serve until their
successors are elected at the next organizational meeting of
the Council.
(d) Meetings.--
(1) Regular meetings of the Council shall be held at least
twice each year at times determined by the Chairman and
approved by the Government Cochairman.
(2) No meeting of the Council shall be held unless the
Government Cochairman approves the agenda thereof, approves the
calling thereof, and is present thereat.
(3) The time and place of all Council meetings shall be
given general publicity and such meetings shall be open to the
public.
(e) Studies by the Council.--
(1) The Council may establish study committees to prepare
reports for the consideration of the Council pursuant to
requests from the Secretary of Energy for advice, information,
and recommendations.
(2) The Secretary of Energy or a full-time employee of the
Department of Energy designated by the Secretary shall be the
Cochairman of each study committee.
(3) The members of study committees shall be selected from
the Council membership on the basis of their training,
experience, and general qualifications to deal with the matters
assigned.
SEC. 407. EXPANSION OF ENERGY INVESTMENT TAX CREDIT TO INCLUDE NUCLEAR
AND CLEAN-COAL EQUIPMENT.
(a) In General.--Clause (i) of section 48C(c)((1)(A) of the
Internal Revenue Code of 1986 is amended by striking ``or'' at the end
of subclause (VI), by striking ``and'' at the end of subclause (VII),
by inserting after subclause (VII) the following new subclauses:
``(VIII) property designed to be
used to produce energy from an advanced
nuclear power facility (as defined in
section 45J(d)), or
``(IX) property designed to be used
to produce energy from clean-coal
equipment, and''.
(b) Denial of Double Benefit.--Subsection (e) of section 48C of
such Code is amended by inserting ``45J,'' before ``48,''.
(c) Effective Date.--The amendment made by subsection (a) shall
apply to property placed in service after the date of the enactment of
this Act.
TITLE V--ENVIRONMENTAL REVIEW; GREENHOUSE GASES
SEC. 501. ENVIRONMENTAL REVIEW FOR RENEWABLE ENERGY PROJECTS.
(a) Compliance With NEPA for Renewable Energy Projects.--
Notwithstanding any other law, in preparing an environmental assessment
or environmental impact statement required under section 102 of the
National Environmental Policy Act of 1969 (42 U.S.C. 4332) with respect
to any action authorizing a renewable energy project under the
jurisdiction of a Federal agency--
(1) no Federal agency is required to identify alternative
project locations or actions other than the proposed action and
the no action alternative; and
(2) no Federal agency is required to analyze the
environmental effects of alternative locations or actions other
than those submitted by the project proponent.
(b) Consideration of Alternatives.--In any environmental assessment
or environmental impact statement referred to in subsection (a), the
Federal agency shall only identify and analyze the environmental
effects and potential mitigation measures of--
(1) the proposed action; and
(2) the no action alternative.
(c) Public Comment.--In preparing an environmental assessment or
environmental impact statement referred to in subsection (a), the
Federal agency shall only consider public comments that specifically
address the preferred action and that are filed within 20 days after
publication of a draft environmental assessment or draft environmental
impact statement. Notwithstanding any other law, compliance with this
subsection is deemed to satisfy section 102(2) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)) and the applicable
regulations and administrative guidelines with respect to proposed
renewable energy projects.
(d) Renewable Energy Project Defined.--For purposes of this
section, the term ``renewable energy project''--
(1) means any proposal to utilize an energy source other
than coal, oil, or natural gas; and
(2) includes the use of nuclear, wind, solar, geothermal,
biomass, hydro (including large, small-scale, and low head
conventional hydro), or tidal forces to generate energy.
SEC. 502. GREENHOUSE GAS REGULATION UNDER CLEAN AIR ACT.
(a) In General.--Section 302(g) of the Clean Air Act (42 U.S.C.
7602(g)) is amended by adding the following at the end thereof: ``The
term `air pollutant' shall not include carbon dioxide, water vapor,
methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, or sulfur
hexafluoride.''.
(b) Climate Change Not Regulated by Clean Air Act.--Nothing in the
Clean Air Act shall be treated as authorizing or requiring the
regulation of climate change or global warming.
SEC. 503. PROHIBITION OF CONSIDERATION OF IMPACT OF GREENHOUSE GAS.
(a) In General.--The Endangered Species Act of 1973 (16 U.S.C. 1531
et seq.) is amended by adding at the end the following new section:
``SEC. 19. PROHIBITION OF CONSIDERATION OF IMPACT OF GREENHOUSE GAS.
``(a) Definition of Greenhouse.--In this section, the term
`greenhouse gas' means any of--
``(1) carbon dioxide;
``(2) methane;
``(3) nitrous oxide;
``(4) sulfur hexafluoride;
``(5) a hydrofluorocarbon;
``(6) a perfluorocarbon; or
``(7) any other anthropogenic gas designated by the
Secretary for purposes of this section.
``(b) Impact of Greenhouse Gas.--The impact of greenhouse gas on
any species of fish or wildlife or plant shall not be considered for
any purpose in the implementation of this Act.''.
(b) Conforming Amendment.--The table of contents in the first
section of the Endangered Species Act of 1973 (16 U.S.C. prec. 1531) is
amended by adding at the end the following new items:
``Sec. 18. Annual cost analysis by the Fish and Wildlife Service.
``Sec. 19. Prohibition of consideration of impact of greenhouse gas.''.
TITLE VI--LEGAL REFORM
SEC. 601. FINDINGS.
Congress finds that--
(1) the United States spends over $1 billion per day to
import crude oil from foreign countries;
(2) such expenditure represents the largest wealth transfer
in history;
(3) the United States has at least 86 billion barrels of
oil and 420 trillion cubic feet of natural gas in the outer
Continental Shelf;
(4) environmental groups have legally challenged every
lease in the Alaskan Outer Continental Shelf in the Chukchi and
Beaufort Seas;
(5) environmental groups have legally challenged the entire
2007-2012 5-year national outer Continental Shelf leasing
program;
(6) such legal challenges significantly delay or ultimately
prevent energy resources from reaching the American public;
(7) these legal challenges come at a high cost to the
American public and the American economy; and
(8) Congress finds that expedited judicial review is
necessary to prevent this gross abuse of the United States
judicial system.
SEC. 602. EXCLUSIVE JURISDICTION OVER CAUSES AND CLAIMS RELATING TO
COVERED ENERGY PROJECTS.
Notwithstanding any other provision of law, the United States
District Court for the District of Columbia shall have exclusive
jurisdiction to hear all causes and claims under this title or any
other Act that arise from any covered energy project.
SEC. 603. TIME FOR FILING COMPLAINT.
All causes and claims referred to in section 602 must be filed not
later than the end of the 60-day period beginning on the date of the
action or decision by a Federal official that constitutes the covered
energy project concerned. Any cause or claim not filed within that time
period shall be barred.
SEC. 604. DISTRICT COURT FOR THE DISTRICT OF COLUMBIA DEADLINE.
(a) In General.--All proceedings that are subject to section 602--
(1) shall be resolved as expeditiously as possible, and in
any event not more than 180 days after such cause or claim is
filed; and
(2) shall take precedence over all other pending matters
before the district court.
(b) Failure To Comply With Deadline.--If an interlocutory or final
judgment, decree, or order has not been issued by the district court by
the deadline described under this section, the cause or claim shall be
dismissed with prejudice and all rights relating to such cause or claim
shall be terminated.
SEC. 605. ABILITY TO SEEK APPELLATE REVIEW.
An interlocutory or final judgment, decree, or order of the
district court may be reviewed by no other court except the Supreme
Court.
SEC. 606. DEADLINE FOR APPEAL TO THE SUPREME COURT.
If a writ of certiorari has been granted by the Supreme Court
pursuant to section 605, then--
(1) the interlocutory or final judgment, decree, or order
of the district court shall be resolved as expeditiously as
possible and in any event not more than 180 days after such
interlocutory or final judgment, decree, order of the district
court is issued; and
(2) all such proceedings shall take precedence over all
other matters then before the Supreme Court.
SEC. 607. LIMITATION ON SCOPE OF REVIEW AND RELIEF.
(a) Administrative Findings and Conclusions.--In any judicial
review of any Federal action under this Act, any administrative
findings and conclusions relating to the challenged Federal action
shall be presumed to be correct unless shown otherwise by clear and
convincing evidence contained in the administrative record.
(b) Limitation on Prospective Relief.--In any judicial review of
any action, or failure to act, under this Act, the Court shall not
grant or approve any prospective relief unless the Court finds that
such relief is narrowly drawn, extends no further than necessary to
correct the violation of a Federal law requirement, and is the least
intrusive means necessary to correct the violation concerned.
SEC. 608. LEGAL FEES.
Any person filing a petition seeking judicial review of any action,
or failure to act, under this Act who is not a prevailing party shall
pay to the prevailing parties (including intervening parties), other
than the United States, fees and other expenses incurred by that party
in connection with the judicial review, unless the Court finds that the
position of the person was substantially justified or that special
circumstances make an award unjust.
SEC. 609. EXCLUSION.
This title shall not apply with respect to disputes between the
parties to a lease issued pursuant to an authorizing leasing statute
regarding the obligations of such lease or the alleged breach thereof.
SEC. 610. COVERED ENERGY PROJECT DEFINED.
In this title, the term ``covered energy project'' means any action
or decision by a Federal official regarding--
(1) the leasing of Federal lands (including submerged
lands) for the exploration, development, production,
processing, or transmission of oil, natural gas, or any other
source or form of energy, including actions and decisions
regarding the selection or offering of Federal lands for such
leasing; or
(2) any action under such a lease.
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