[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3203 Introduced in Senate (IS)]

<DOC>






114th CONGRESS
  2d Session
                                S. 3203

To provide for economic development and access to resources in Alaska, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 13, 2016

 Ms. Murkowski (for herself and Mr. Sullivan) introduced the following 
bill; which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
To provide for economic development and access to resources in Alaska, 
                        and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Alaska Economic 
Development and Access to Resources Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definition of Secretary.
                           TITLE I--FILL TAPS

Sec. 101. Plan for new production on Federal land in Alaska.
                   TITLE II--OUTER CONTINENTAL SHELF

Sec. 201. Outer Continental Shelf oil and gas leases offshore Alaska.
Sec. 202. Inclusion of certain lease sales in the oil and gas leasing 
                            program.
                       TITLE III--FEDERAL ONSHORE

               Subtitle A--Authorizing Alaska Production

Sec. 301. Definitions.
Sec. 302. Leasing program for land within the Undeformed Area of the 
                            Coastal Plain.
Sec. 303. Lease sales.
Sec. 304. Grant of leases by the Secretary.
Sec. 305. Lease terms and conditions.
Sec. 306. Undeformed Area of the Coastal plain environmental 
                            protection.
Sec. 307. Rights-of-way and easements across Undeformed Area of the 
                            Coastal Plain.
Sec. 308. Conveyance.
Sec. 309. Clarification of western coastal boundary of ANWR.
Sec. 310. Local government impact aid and community service assistance.
             Subtitle B--National Petroleum Reserve-Alaska

Sec. 311. Leasing requirement.
Sec. 312. Plan for exploration and evaluation of gravel sources.
                            TITLE IV--MINING

Sec. 401. Department of Energy grants for extraction and purification 
                            of rare earth elements.
Sec. 402. Valid existing claims.
Sec. 403. ANILCA clarification: Limitation on land use designations.
                           TITLE V--FORESTRY

Sec. 501. Roadless Area Conservation Rule exemption.
Sec. 502. Alaska Mental Health Trust land exchange.
Sec. 503. Tongass State forest facilitation.

SEC. 2. DEFINITION OF SECRETARY.

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

                           TITLE I--FILL TAPS

SEC. 101. PLAN FOR NEW PRODUCTION ON FEDERAL LAND IN ALASKA.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall develop a plan that will result, by 
2026, in an increase in production on Federal land in the State of 
Alaska of 500,000 barrels of oil per day.
    (b) Increase in Entitlement.--
            (1) In general.--If the Secretary does not develop the plan 
        under subsection (a) by the deadline described in that 
        subsection, the Secretary shall increase the acreage of land to 
        which the State of Alaska is entitled under the Act of July 7, 
        1958 (commonly known as the ``Alaska Statehood Act'') (48 
        U.S.C. note prec. 21; Public Law 85-508) and other applicable 
        Federal law by 1,000,000 acres.
            (2) Additional increases.--For each additional year for 
        which the Secretary does not meet the deadline described in 
        subsection (a), the Secretary shall increase the acreage of 
        land described in paragraph (1) by an additional 1,000,000 
        acres.

                   TITLE II--OUTER CONTINENTAL SHELF

SEC. 201. OUTER CONTINENTAL SHELF OIL AND GAS LEASES OFFSHORE ALASKA.

    The Outer Continental Shelf Lands Act is amended by inserting after 
section 9 (43 U.S.C. 1338) the following:

``SEC. 10. LEASES IN ALASKA OUTER CONTINENTAL SHELF REGION.

    ``(a) Suspension Periods.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, any oil and gas lease on the outer Continental Shelf 
        Alaska region issued under section 8 on or after the date of 
        enactment of the Alaska Economic Development and Access to 
        Resources Act shall be subject to 1 suspension period each 
        year, as described in paragraph (2), during which the primary 
        term of the lease shall not run.
            ``(2) Suspension period described.--The suspension period 
        referred to in paragraph (1) is a suspension period selected by 
        the lessee of either the period--
                    ``(A) beginning on November 1 of a calendar year 
                and ending on June 30 of the succeeding calendar year; 
                or
                    ``(B) beginning on March 1 of a calendar year and 
                ending on October 31 of the same calendar year.
            ``(3) Written notice.--The lessee shall provide to the 
        Secretary written notice of the selection of the suspension 
        period under paragraph (2).
            ``(4) Modification of suspension period.--After providing 
        written notice to the Secretary, the lessee may modify the 
        suspension period selected under paragraph (2), which 
        modification shall be effective for the year following the 
        lease year during which the Secretary receives the notice of 
        the modification.
            ``(5) Operations authorized.--Notwithstanding paragraph 
        (1), a lessee or operator of an oil and gas lease on the outer 
        Continental Shelf Alaska region may conduct operations under 
        the lease during the suspension period, on the condition that 
        the term of the lease shall run for the number of days that the 
        lessee or operator conducts the operations during the 
        suspension period.
            ``(6) Rental payments.--For any lease subject to a 
        suspension period under this section, the lessee shall make 
        rental payments for the entire lease year.
            ``(7) Election required for existing leases.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, this subsection shall apply to an oil 
                and gas lease on the outer Continental Shelf Alaska 
                region in effect on the date of enactment of the Alaska 
                Economic Development and Access to Resources Act only 
                if, not later than 90 days after that date, the lessee 
                provides to the Secretary written notice that the 
                lessee is electing to accept the provisions of this 
                subsection with respect to that lease.
                    ``(B) Annual rental increase.--If the lessee elects 
                under subparagraph (A) to accept the provisions of this 
                subsection with respect to an oil and gas lease of the 
                lessee, beginning in the lease year that is 10 years 
                after the effective date of the lease, the annual 
                rental established for that lease shall increase by 
                $2.50 per hectare per year.
    ``(b) Minimum Primary Lease Term.--Notwithstanding any other 
provision of law, the Secretary shall not issue an oil and gas lease on 
the outer Continental Shelf Alaska region for a primary term of fewer 
than 10 years.
    ``(c) Sharing Increased Revenues With the State of Alaska.--
Notwithstanding section 9, for each applicable fiscal year, the 
Secretary of the Treasury shall disburse 90 percent of the amounts 
collected in that fiscal year as a result of the increase in annual 
rental payments under subsection (a)(7)(B) to the State of Alaska.
    ``(d) Effect.--Nothing in this section limits the authority of the 
Secretary to grant or direct a suspension of a lease or permit under 
section 5(a)(1).''.

SEC. 202. INCLUSION OF CERTAIN LEASE SALES IN THE OIL AND GAS LEASING 
              PROGRAM.

    Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344) is amended by adding at the end the following:
    ``(i) Inclusion of Certain Lease Sales.--The Secretary shall 
include in the leasing program for fiscal years 2017 through 2023 
prepared in accordance with this section provisions for the conduct 
of--
            ``(1) in the Beaufort planning area, 1 lease sale in each 
        of fiscal years 2017 and 2022;
            ``(2) in the Cook Inlet planning area, 1 lease sale in each 
        of fiscal years 2017 and 2019; and
            ``(3) in the Chukchi planning area, 1 lease sale in each of 
        fiscal years 2017 and 2019.''.

                       TITLE III--FEDERAL ONSHORE

               Subtitle A--Authorizing Alaska Production

SEC. 301. DEFINITIONS.

    In this subtitle:
            (1) Final statement.--The term ``Final Statement'' means 
        the final legislative environmental impact statement on the 
        Coastal Plain, dated April 1987, and prepared pursuant to--
                    (A) section 1002 of the Alaska National Interest 
                Lands Conservation Act (16 U.S.C. 3142); and
                    (B) section 102(2)(C) of the National Environmental 
                Policy Act of 1969 (42 U.S.C. 4332(2)(C)).
            (2) Undeformed area of the coastal plain.--The term 
        ``Undeformed Area of the Coastal Plain'' means the 
        approximately 375,000 acres generally depicted as the 
        undeformed area north of the Marsh Creek anticline in figure 2 
        of fact sheet 0028-01 of the United States Geological Survey.

SEC. 302. LEASING PROGRAM FOR LAND WITHIN THE UNDEFORMED AREA OF THE 
              COASTAL PLAIN.

    (a) In General.--
            (1) Authorization.--Congress authorizes the exploration, 
        leasing, development, production, and economically feasible and 
        prudent transportation of oil and gas in and from the 
        Undeformed Area of the Coastal Plain.
            (2) Actions.--The Secretary shall take such actions as are 
        necessary--
                    (A) to establish and implement, in accordance with 
                this subtitle, a competitive oil and gas leasing 
                program that will result in an environmentally sound 
                program for the exploration, development, and 
                production of the oil and gas resources of the 
                Undeformed Area of the Coastal Plain; and
                    (B) to administer this subtitle through 
                regulations, lease terms, conditions, restrictions, 
                prohibitions, stipulations, and other provisions that--
                            (i) ensure the oil and gas exploration, 
                        development, and production activities on the 
                        Undeformed Area of the Coastal Plain will 
                        result in no significant adverse effect on fish 
                        and wildlife, fish and wildlife habitat, 
                        subsistence resources, and the environment; and
                            (ii) require the application of the best 
                        commercially available technology for oil and 
                        gas exploration, development, and production to 
                        all exploration, development, and production 
                        operations under this subtitle in a manner that 
                        ensures the receipt of fair market value by the 
                        public for the mineral resources to be leased.
    (b) Repeal.--
            (1) Repeal.--Section 1003 of the Alaska National Interest 
        Lands Conservation Act (16 U.S.C. 3143) is repealed.
            (2) Conforming amendment.--The table of contents contained 
        in section 1 of that Act (16 U.S.C. 3101 note) is amended by 
        striking the item relating to section 1003.
    (c) Compliance With Requirements Under Certain Other Laws.--
            (1) Compatibility.--For purposes of the National Wildlife 
        Refuge System Administration Act of 1966 (16 U.S.C. 668dd et 
        seq.)--
                    (A) the oil and gas preleasing and leasing program, 
                and activities authorized by this section in the 
                Undeformed Area of the Coastal Plain, shall be 
                considered to be compatible with the purposes for which 
                the Arctic National Wildlife Refuge was established; 
                and
                    (B) no further findings or decisions shall be 
                required to implement that program and those 
                activities.
            (2) Adequacy of the department of the interior's 
        legislative environmental impact statement.--The Final 
        Statement shall be considered to satisfy the requirements under 
        the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
        et seq.) that apply with respect to preleasing, including 
        exploration programs and actions authorized to be taken by the 
        Secretary to develop and promulgate the regulations for the 
        establishment of a leasing program authorized by this subtitle 
        before the conduct of the first lease sale.
            (3) Compliance with nepa for other actions.--
                    (A) In general.--Before conducting the first lease 
                sale under this subtitle, the Secretary shall prepare 
                an environmental impact statement in accordance with 
                the National Environmental Policy Act of 1969 (42 
                U.S.C. 4321 et seq.) with respect to the actions 
                authorized by this subtitle that are not referred to in 
                paragraph (2).
                    (B) Identification and analysis.--Notwithstanding 
                any other provision of law, in carrying out this 
                paragraph, the Secretary shall not--
                            (i) identify nonleasing alternative courses 
                        of action; or
                            (ii) analyze the environmental effects of 
                        those courses of action.
                    (C) Identification of preferred action.--Not later 
                than 1 year after the date of enactment of this Act, 
                the Secretary shall identify only a preferred action 
                and a single leasing alternative for the first lease 
                sale authorized under this subtitle.
                    (D) Effect of compliance.--Notwithstanding any 
                other provision of law, compliance with this paragraph 
                shall be considered to satisfy all requirements for the 
                analysis and consideration of the environmental effects 
                of proposed leasing under this subtitle.
    (d) Relationship to State and Local Authority.--Nothing in this 
subtitle expands or limits any State or local regulatory authority.
    (e) Limitation on Closed Areas.--The Secretary shall not close land 
within the Undeformed Area of the Coastal Plain to oil and gas leasing 
or to exploration, development, or production except in accordance with 
this subtitle.
    (f) Regulations.--Not later than 1 year after the date of enactment 
of this Act, in consultation with the State of Alaska, North Slope 
Borough, Alaska, the City of Kaktovik, Alaska, and the Arctic Slope 
Regional Corporation, the Secretary shall promulgate such regulations 
as are necessary to carry out this subtitle.
    (g) Authorization on KIC-ASRC Private Land.--Exploratory drilling, 
leasing, development, and production of oil and gas resources are 
authorized on the KIC-ASRC private land described in Appendix 2 of the 
agreement between Arctic Slope Regional Corporation and the United 
States, dated August 9, 1983.

SEC. 303. LEASE SALES.

    (a) In General.--Land may be leased pursuant to this subtitle to 
any person qualified to obtain a lease for deposits of oil and gas 
under the Mineral Leasing Act (30 U.S.C. 181 et seq.).
    (b) Procedures.--The Secretary shall, by regulation, establish 
procedures for--
            (1) receipt and consideration of sealed nominations for any 
        area in the Undeformed Area of the Coastal Plain for inclusion 
        in a lease sale;
            (2) the holding of lease sales after the nomination process 
        described in paragraph (1); and
            (3) public notice of and comment on designation of areas to 
        be included in, or excluded from, a lease sale.
    (c) Lease Sale Bids.--Bidding for leases under this subtitle shall 
be by sealed competitive cash bonus bids.
    (d) Acreage Minimum in First Sale.--For the first lease sale under 
this subtitle, the Secretary shall offer for lease those tracts the 
Secretary considers to have the greatest potential for the discovery of 
hydrocarbons, taking into consideration nominations received pursuant 
to subsection (b)(1), but in no case less than 200,000 acres.
    (e) Timing of Lease Sales.--The Secretary shall--
            (1) not later than 18 months after the date of enactment of 
        this Act, conduct the first lease sale under this subtitle;
            (2) not later than 1 year after the date on which the first 
        lease sale is conducted under paragraph (1), conduct a second 
        lease sale under this subtitle; and
            (3) conduct additional sales at appropriate intervals if 
        sufficient interest in exploration or development exists to 
        warrant the conduct of the additional sales.

SEC. 304. GRANT OF LEASES BY THE SECRETARY.

    (a) In General.--Upon payment by a lessee of such bonus as may be 
accepted by the Secretary, the Secretary shall grant to the highest 
responsible qualified bidder in a lease sale conducted pursuant to 
section 303 a lease for any land on the Undeformed Area of the Coastal 
Plain.
    (b) Subsequent Transfers.--
            (1) In general.--No lease issued under this subtitle may be 
        sold, exchanged, assigned, sublet, or otherwise transferred 
        except with the approval of the Secretary.
            (2) Condition for approval.--Before granting any approval 
        described in paragraph (1), the Secretary shall consult with 
        and give due consideration to the opinion of the attorney 
        general.

SEC. 305. 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 of the amount or value of the production 
        removed or sold from the lease, as determined by the Secretary 
        in accordance with regulations applicable to other Federal oil 
        and gas leases;
            (2) provide that the Secretary, after consultation with the 
        State of Alaska, North Slope Borough, Alaska, the City of 
        Kaktovik, Alaska, and the Arctic Slope Regional Corporation, 
        may close, on a seasonal basis, such portions of the Undeformed 
        Area of the Coastal Plain to exploratory drilling activities as 
        are necessary to protect caribou calving areas and other 
        species of fish and wildlife;
            (3) require that each lessee of land within the Undeformed 
        Area of the Coastal Plain shall be fully responsible and liable 
        for the reclamation of land within the Undeformed Area of the 
        Coastal Plain and any other Federal land that is adversely 
        affected in connection with exploration, development, 
        production, or transportation activities within the Undeformed 
        Area of the Coastal Plain conducted by the lessee or by any of 
        the subcontractors or agents of the lessee;
            (4) provide that the lessee may not delegate or convey, by 
        contract or otherwise, the reclamation responsibility and 
        liability described in paragraph (3) to another person without 
        the express written approval of the Secretary;
            (5) provide that the standard of reclamation for land 
        required to be reclaimed under this subtitle shall be, to the 
        maximum extent practicable--
                    (A) a condition capable of supporting the uses that 
                the land was capable of supporting prior to any 
                exploration, development, or production activities; or
                    (B) on application by the lessee, to a higher or 
                better standard, as approved by the Secretary;
            (6) contain terms and conditions relating to protection of 
        fish and wildlife, fish and wildlife habitat, subsistence 
        resources, and the environment as required under section 
        302(a)(2); and
            (7) provide that each lessee, and each agent and contractor 
        of a lessee, shall use their best efforts to provide a fair 
        share of employment and contracting for Alaska Natives and 
        Alaska Native Corporations from throughout the State of Alaska, 
        as determined by the level of obligation previously agreed to 
        in the Federal Agreement and Grant Right-of-Way for the Trans-
        Alaska Pipeline issued on January 23, 1974, in accordance with 
        section 28 of the Mineral Leasing Act (30 U.S.C. 185) and the 
        Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1651 et 
        seq.).
    (b) Project Labor Agreements.--The Secretary, as a term and 
condition of each lease under this subtitle, and in recognizing the 
proprietary interest of the Federal Government in labor stability and 
in the ability of construction labor and management to meet the 
particular needs and conditions of projects to be developed under the 
leases issued pursuant to this subtitle (including the special concerns 
of the parties to those leases), shall require that each lessee, and 
each agent and contractor of a lessee, under this subtitle negotiate to 
obtain a project labor agreement for the employment of laborers and 
mechanics on production, maintenance, and construction under the lease.

SEC. 306. UNDEFORMED AREA OF THE COASTAL PLAIN ENVIRONMENTAL 
              PROTECTION.

    (a) No Significant Adverse Effect Standard To Govern Authorized 
Activities on Undeformed Area of the Coastal Plain.--In accordance with 
section 302, the Secretary shall administer this subtitle through 
regulations, lease terms, conditions, restrictions, prohibitions, 
stipulations, or other provisions that--
            (1) ensure, to the maximum extent practicable, that oil and 
        gas exploration, development, and production activities on the 
        Undeformed Area of the Coastal Plain will result in no 
        significant adverse effect on fish and wildlife, fish and 
        wildlife habitat, subsistence resources, and the environment;
            (2) require the application of the best commercially 
        available technology for oil and gas exploration, development, 
        and production on all new exploration, development, and 
        production operations; and
            (3) ensure that the maximum surface acreage covered in 
        connection with the leasing program by production and support 
        facilities, including airstrips and any areas covered by gravel 
        berms or piers for support of pipelines, does not exceed 2,000 
        acres on the Undeformed Area of the Coastal Plain.
    (b) Site-Specific Assessment and Mitigation.--The Secretary shall 
require, with respect to any proposed drilling and related activities 
on the Undeformed Area of the Coastal Plain, that--
            (1) a site-specific environmental analysis be made of the 
        probable effects, if any, that the drilling or related 
        activities will have on fish and wildlife, fish and wildlife 
        habitat, subsistence resources, and the environment;
            (2) a plan be implemented to avoid, minimize, and mitigate 
        (in that order and to the maximum extent practicable) any 
        significant adverse effect identified under paragraph (1); and
            (3) the development of the plan occur after consultation 
        with--
                    (A) each agency having jurisdiction over matters 
                mitigated by the plan;
                    (B) the State of Alaska;
                    (C) North Slope Borough, Alaska;
                    (D) the City of Kaktovik, Alaska; and
                    (E) the Arctic Slope Regional Corporation.
    (c) Regulations To Protect Undeformed Area of the 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, or other measures 
designed to ensure, to the maximum extent practicable, that the 
activities carried out on the Undeformed Area of 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 regulations, lease terms, conditions, restrictions, 
prohibitions, and stipulations for the leasing program under this 
subtitle shall require--
            (1) compliance with all applicable provisions of Federal 
        and State environmental law (including regulations); and
            (2) implementation of and compliance with--
                    (A) standards that are at least as effective as the 
                safety and environmental mitigation measures, as 
                described in items 1 through 29 on pages 167 through 
                169 of the Final Statement;
                    (B) reclamation and rehabilitation requirements in 
                accordance with this subtitle for the removal from the 
                Undeformed Area of the Coastal Plain of all oil and gas 
                development and production facilities, structures, and 
                equipment on completion of oil and gas production 
                operations, except in a case in which the Secretary 
                determines that those facilities, structures, or 
                equipment--
                            (i) would assist in the management of the 
                        Arctic National Wildlife Refuge; and
                            (ii) are donated to the United States for 
                        that purpose; and
                    (C) reasonable stipulations for protection of 
                cultural and archaeological resources.
    (e) Access to Public Land.--The Secretary shall--
            (1) manage public land in the Undeformed Area of the 
        Coastal Plain in accordance with subsections (a) and (b) of 
        section 811 of the Alaska National Interest Lands Conservation 
        Act (16 U.S.C. 3121); and
            (2) ensure that local residents shall have reasonable 
        access to public land in the Undeformed Area of the Coastal 
        Plain for traditional uses.

SEC. 307. RIGHTS-OF-WAY AND EASEMENTS ACROSS UNDEFORMED AREA OF THE 
              COASTAL PLAIN.

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

SEC. 308. CONVEYANCE.

    (a) In General.--Notwithstanding section 1302(h)(2) of the Alaska 
National Interest Lands Conservation Act (16 U.S.C. 3192(h)(2)), to 
remove any cloud on title to land, and to clarify land ownership 
patterns, the Secretary shall--
            (1) to the extent necessary to fulfill the entitlement of 
        the Kaktovik Inupiat Corporation under sections 12 and 14 of 
        the Alaska Native Claims Settlement Act (43 U.S.C. 1611, 1613), 
        as determined by the Secretary, convey to that Corporation the 
        surface estate of the land described in paragraph (1) of Public 
        Land Order 6959, in accordance with the terms and conditions of 
        the agreement between the Secretary, the United States Fish and 
        Wildlife Service, the Bureau of Land Management, and the 
        Kaktovik Inupiat Corporation, dated January 22, 1993; and
            (2) convey to the Arctic Slope Regional Corporation the 
        remaining subsurface estate to which that Corporation is 
        entitled under the agreement between that corporation and the 
        United States, dated August 9, 1983.
    (b) Land Adjacent to and Southwest of ANWR.--As a condition of 
receipt of the benefits under this subtitle, the State of Alaska shall 
convey to the United States all right, title, and interest in and to 
the approximately 598,767 acres generally depicted as ``Proposed Trade 
Land'' on the map entitled ``Proposed ANWR Exchange'', prepared by the 
State of Alaska Department of Natural Resources, and dated July 2015.

SEC. 309. CLARIFICATION OF WESTERN COASTAL BOUNDARY OF ANWR.

    The western coastal boundary of Arctic National Wildlife Refuge is 
defined--
            (1) as the boundary originally established as part of the 
        Alaska Arctic Wildlife Range under Public Land Order 2214, 
        dated December 6, 1960 (25 Fed. Reg. 12598); and
            (2) consistent with the order of the case styled United 
        States v. Alaska (521 U.S. 1 (1997)).

SEC. 310. LOCAL GOVERNMENT IMPACT AID AND COMMUNITY SERVICE ASSISTANCE.

    (a) Establishment of Fund.--
            (1) In general.--There is established in the Treasury a 
        fund to be known as the ``Undeformed Area of the Coastal Plain 
        Local Government Impact Aid Assistance Fund'' (referred to in 
        this section as the ``Fund'').
            (2) Use.--Amounts in the Fund may be used only to provide 
        financial assistance in accordance with subsection (b).
            (3) Deposits.--Subject to paragraph (4), of amounts of 
        revenues payable to the State of Alaska under section 35 of the 
        Mineral Leasing Act (30 U.S.C. 191) that are derived from 
        rents, bonuses, and royalties from Federal leases and lease 
        sales authorized under this subtitle--
                    (A) $28,000,000 shall be deposited in the Fund for 
                the first fiscal year for which amounts are received by 
                the United States from Federal leases and lease sales 
                authorized under this subtitle; and
                    (B) $7,000,000 shall be deposited in the Fund for 
                each fiscal year thereafter.
            (4) Limitation on deposits.--The total amount in the Fund 
        may not exceed $28,000,000.
            (5) Investment of balances.--The Secretary of the Treasury 
        shall invest amounts in the Fund in interest-bearing securities 
        of the United States.
    (b) Financial Assistance.--
            (1) In general.--The Secretary may use amounts available 
        from the Fund to provide timely financial assistance to North 
        Slope Borough, Alaska, the City of Kaktovik, Alaska, and any 
        other borough, municipal subdivision, village, or other 
        community in the State of Alaska that is directly impacted by 
        exploration for, or the production of, oil or gas on the 
        Undeformed Area of the Coastal Plain under this subtitle, as 
        determined by the Secretary.
            (2) Use of assistance.--Financial assistance provided under 
        this subsection may be used only for--
                    (A) planning for mitigation of the potential 
                effects of oil and gas exploration and development on 
                environmental, social, cultural, recreational, and 
                subsistence values;
                    (B) implementing mitigation plans and maintaining 
                mitigation projects;
                    (C) developing, carrying out, and maintaining 
                projects and programs that provide new or expanded 
                public facilities and services to address needs and 
                problems associated with the effects described in 
                subparagraph (A), including firefighting, police, 
                water, waste treatment, medivac, and medical services; 
                and
                    (D) the establishment by North Slope Borough, 
                Alaska, of a coordination office in the City of 
                Kaktovik, Alaska--
                            (i) to coordinate with and advise 
                        developers on local conditions of, impacts on, 
                        and the history of the areas utilized for 
                        development under this subtitle; and
                            (ii) to 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 that describes 
                        the status of coordination between developers 
                        and the communities affected by development 
                        under this subtitle.
    (c) Application.--
            (1) In general.--To receive assistance under subsection 
        (b), a community described in subsection (b)(1) shall submit to 
        the Secretary an application for assistance, in such form and 
        under such procedures as the Secretary may prescribe by 
        regulation.
            (2) North slope borough communities.--A community located 
        in North Slope Borough, Alaska, may apply for assistance under 
        this section either directly with the Secretary or through the 
        North Slope Borough.
            (3) Application assistance.--The Secretary shall work 
        closely with and assist North Slope Borough, Alaska, and other 
        communities eligible for assistance under this section in 
        developing and submitting applications under this subsection.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary from the Fund $7,000,000 for each fiscal 
year to provide financial assistance under this section.

             Subtitle B--National Petroleum Reserve-Alaska

SEC. 311. LEASING REQUIREMENT.

    (a) Definition of Map.--In this section, the term ``map'' means the 
Preferred Alternative, as drawn in Figure II.C.1 in the Northeast 
National Petroleum Reserve-Alaska, Integrated Activity Plan/
Environmental Impact Statement Record of Decision, dated October 1998.
    (b) Requirement.--The Secretary shall offer one or more area-wide 
oil and gas lease sales in areas identified on the map as ``Available 
for Oil & Gas Leasing''.

SEC. 312. PLAN FOR EXPLORATION AND EVALUATION OF GRAVEL SOURCES.

    (a) In General.--To further enhance the potential for oil and gas 
development in the National Petroleum Reserve-Alaska, the Secretary 
shall develop a plan for exploration and evaluation in the National 
Petroleum Reserve-Alaska of gravel sources suitable for the 
construction of roads and pads necessary for the oil and gas 
development (referred to in this section as the ``plan'').
    (b) Deadline for Submission of Plan to Congress.--Not later than 
180 days after the date of enactment of this Act, the Secretary shall 
submit to Congress the plan.
    (c) Implementation of Plan.--Not later than 1 year after the date 
of enactment of this Act, the Secretary shall implement, and submit to 
Congress the results of the implementation of, the plan.
    (d) Cooperation Required.--The Secretary of Defense shall cooperate 
with the Secretary in the implementation of the plan.

                            TITLE IV--MINING

SEC. 401. DEPARTMENT OF ENERGY GRANTS FOR EXTRACTION AND PURIFICATION 
              OF RARE EARTH ELEMENTS.

    (a) Purpose.--The purpose of this section is to provide Department 
of Energy grants for the development of more environmentally acceptable 
and less expensive ways to separate and process rare earth elements, 
which would increase the likelihood of economic production of rare 
earth elements in North America.
    (b) Definitions.--In this section:
            (1) Rare earth element.--
                    (A) In general.--The term ``rare earth element'' 
                means a chemical element in the periodic table from 
                lanthanum (atomic number 57) through lutetium (atomic 
                number 71).
                    (B) Inclusions.--The term ``rare earth element'' 
                includes the similar chemical elements scandium (atomic 
                number 21) and yttrium (atomic number 39).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (c) Department of Energy Grants for Extraction and Purification of 
Rare Earth Elements.--
            (1) In general.--The Secretary shall establish a program in 
        the Department of Energy under which the Secretary shall 
        provide to applicants grants for the development and 
        demonstration of new processes--
                    (A) to extract and purify rare earth elements using 
                environmentally benign technologies; and
                    (B) that would result in--
                            (i) the separation of individual rare earth 
                        elements; and
                            (ii) the production of solid rare earth 
                        salts, which are the materials necessary for 
                        the manufacturing of downstream products.
            (2) Inclusions.--In providing grants under paragraph (1), 
        the Secretary shall provide to applicants grants for the 
        testing of green chemistry processes in the separation process 
        for rare earth element extraction, with an emphasis on closed 
        loop systems that can produce relatively heavy rare earth 
        elements such as dysprosium (Dy), terbium (Tb), and europium 
        (Eu).
    (d) Pilot Plant for Rare Earth Element Separation and Processing.--
The Secretary shall develop, construct, and demonstrate a pilot plant 
to provide proof of concept for rare earth element separation and 
processing using molecular recognition technology.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section, of 
which not less than $7,500,000 shall be made available to provide 
grants under subsection (c)(2).

SEC. 402. VALID EXISTING CLAIMS.

    (a) Definitions.--In this section:
            (1) Claim.--The term ``claim'' means an unpatented lode 
        mining claim, placer claim, mill site, or tunnel site located 
        under the general mining laws.
            (2) Federal land.--The term ``Federal land'' means land or 
        an interest in land that--
                    (A) is owned by the United States; and
                    (B)(i) is open to mineral entry and location; or
                    (ii) was open to mineral entry and location at the 
                time of the entry or location.
            (3) Mineral activity.--The term ``mineral activity'' means 
        any of the following activities carried out on Federal land 
        under a claim, whether with a discovery or without a discovery, 
        or off of a claim:
                    (A) Any activity for mineral prospecting, 
                exploration, development, mining, extraction, milling, 
                beneficiation, processing, or storage of mined or 
                processed materials.
                    (B) Any reclamation activity for any locatable 
                mineral.
                    (C) Any activity that is reasonably incident to an 
                activity described in subparagraph (A) or (B), 
                including the construction and use of roads, 
                transmission lines, water wells, pipelines, utility 
                corridors, and other means of access across Federal 
                land for ancillary facilities used in conjunction with 
                the activity.
            (4) Withdrawal or other action.--The term ``withdrawal or 
        other action'' means any withdrawal or any Federal management 
        regulatory action or other action that withholds an area of 
        Federal land from settlement, sale, location, or entry under 
        some or all of the general land laws for the purpose of 
        affecting mining or mineral activity in order to maintain other 
        public values in the area.
    (b) Exclusion.--Any claim located prior to any withdrawal--
            (1) is excluded from withdrawal or other action;
            (2) shall be considered to be--
                    (A) valid for the purposes of mining or mineral 
                activity; and
                    (B) a valid existing right until such time as the 
                Secretary successfully contests the validity of such a 
                claim.
    (c) Burden of Proof.--With respect to a contest described in 
subsection (b)(2)(B), any burden of proof or costs shall be the 
responsibility of the Secretary.
    (d) Application.--Any law (including regulations) or Federal action 
that applies to a claim located within an area of Federal land subject 
to a withdrawal or other action shall not apply to a claim described in 
subsection (b).

SEC. 403. ANILCA CLARIFICATION: LIMITATION ON LAND USE DESIGNATIONS.

    Section 1326 of the Alaska National Interest Lands Conservation Act 
(16 U.S.C. 3213) is amended by adding at the end the following:
    ``(c) Limitation on Land Use Designations.--
            ``(1) In general.--Consistent with the intent of Congress 
        expressed in section 101(d), no executive branch action 
        described in paragraph (2) shall be effective unless the 
        requirements of paragraph (3) are met with respect to the 
        executive branch action.
            ``(2) Description of executive branch action.--An executive 
        branch action referred to in paragraph (1) is any executive 
        branch action that--
                    ``(A) designates more than 5,000 acres of public 
                lands within the State; and
                    ``(B) limits, or has the effect of limiting or 
                impeding, activities and uses allowed on public lands 
                as of the date of enactment of this subsection, 
                including designations and management of public lands 
                as a wilderness study area, a component of the National 
                Wild and Scenic Rivers System, a critical habitat under 
                the Endangered Species Act of 1973 (16 U.S.C. 1531 et 
                seq.), an area of critical environmental concern (as 
                defined in section 103 of the Federal Land Policy and 
                Management Act of 1976 (43 U.S.C. 1702)), and any 
                similar land use designation or management of public 
                lands pursuant to any Federal land use law.
            ``(3) Requirements.--
                    ``(A) In general.--The President or the Secretary 
                may only take an executive branch action described in 
                paragraph (2) with respect to public lands in the State 
                pursuant to any Federal law after providing notice of 
                the designation in the Federal Register and to 
                Congress.
                    ``(B) Termination.--Any action taken under 
                subparagraph (A) shall terminate unless, not later than 
                1 year after the date on which notice of the action has 
                been submitted to Congress under that subparagraph, 
                Congress passes a joint resolution of approval of the 
                executive branch action.
    ``(d) Revocation of Designations of Areas of Critical Environmental 
Concern.--Each designation of an area within the State as an area of 
critical environmental concern in effect on the date of enactment of 
this subsection is revoked.''.

                           TITLE V--FORESTRY

SEC. 501. ROADLESS AREA CONSERVATION RULE EXEMPTION.

    The Roadless Area Conservation Rule established under part 294 of 
title 36, Code of Federal Regulations (or successor regulations), shall 
not apply with respect to any National Forest System land in the State 
of Alaska.

SEC. 502. ALASKA MENTAL HEALTH TRUST LAND EXCHANGE.

    (a) Finding; Purpose.--
            (1) Finding.--Congress finds that the exchange of land 
        between the Alaska Mental Health Trust and the Secretary of 
        Agriculture authorized and directed by this section is in the 
        public interest.
            (2) Purpose.--The purpose of this section is to provide for 
        the exchange of land between the Alaska Mental Health Trust and 
        the Secretary of Agriculture--
                    (A) to preserve the scenic and visual backdrops of 
                southeastern Alaska communities, while creating 
                economic opportunities in more remote areas of the 
                State of Alaska;
                    (B) to secure Federal ownership and protection of 
                non-Federal land in the State of Alaska that has 
                significant natural, scenic, recreational, and other 
                public values; and
                    (C) to contribute to the goals and objectives of 
                timber management in the Tongass National Forest.
    (b) Definitions.--In this section:
            (1) Alaska mental health trust.--The term ``Alaska Mental 
        Health Trust'' means the Alaska Mental Health Trust Authority, 
        an agency of the State.
            (2) Federal land.--The term ``Federal land'' means the 
        National Forest System land depicted on the maps in Exhibit B 
        of the agreement between the Forest Service and the Alaska 
        Mental Health Trust entitled ``Alaska Mental Health Land 
        Exchange, Agreement to Initiate, Case No. 5x-18''.
            (3) Non-federal land.--The term ``non-Federal land'' means 
        the parcels of Alaska Mental Health Trust land that are 
        depicted on the maps in Exhibit A of the agreement between the 
        Forest Service and the Alaska Mental Health Trust entitled 
        ``Alaska Mental Health Land Exchange, Agreement to Initiate, 
        Case No. 5x-18''.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (5) State.--The term ``State'' means the State of Alaska.
    (c) Land Exchange.--
            (1) In general.--If the Alaska Mental Health Trust offers 
        to convey to the Secretary all right, title, and interest of 
        the Alaska Mental Health Trust in and to the non-Federal land--
                    (A) the Secretary, on completion of the 
                environmental reviews described in paragraph (2), shall 
                convey to the Alaska Mental Health Trust all right, 
                title, and interest of the United States in and to the 
                Federal land; and
                    (B) the Alaska Mental Health Trust, on receipt of 
                title to the Federal land under subparagraph (A), shall 
                convey to the Secretary all right, title, and interest 
                of the Alaska Mental Health Trust in and to the non-
                Federal land, subject to paragraph (3).
            (2) Compliance with applicable law.--Before carrying out 
        the land exchange under paragraph (1), the Secretary shall 
        complete any necessary land surveys and required pre-exchange 
        clearances, reviews, mitigation activities, and approvals 
        relating to--
                    (A) threatened and endangered species;
                    (B) cultural and historic resources;
                    (C) wetland and floodplains; and
                    (D) hazardous materials.
            (3) Conditions on acceptance.--Title to any non-Federal 
        land conveyed by the Alaska Mental Health Trust to the 
        Secretary under paragraph (1)(B) shall be in a form that--
                    (A) is acceptable to the Secretary, in the case of 
                non-Federal land to be administered by the Forest 
                Service; and
                    (B) conforms to the title approval standards of the 
                attorney general applicable to land acquisitions by the 
                Federal Government.
            (4) Appraisals.--
                    (A) In general.--As soon as practicable after the 
                date of enactment of this Act, the Secretary and the 
                Alaska Mental Health Trust shall select an appraiser to 
                conduct appraisals of the Federal land and non-Federal 
                land.
                    (B) Requirements.--
                            (i) In general.--Except as provided in 
                        clause (ii), an appraisal required under this 
                        paragraph shall be conducted in accordance with 
                        national recognized appraisal standards, 
                        including--
                                    (I) the Uniform Appraisal Standards 
                                for Federal Land Acquisitions; and
                                    (II) the Uniform Standards of 
                                Professional Appraisal Practice.
                            (ii) Final appraised value.--
                                    (I) In general.--During the 3-year 
                                period beginning on the date on which 
                                the final appraised values of the 
                                Federal land and non-Federal land are 
                                approved by the Secretary, the 
                                Secretary shall not be required to 
                                reappraise or update the final 
                                appraised values of the Federal land 
                                and non-Federal land.
                                    (II) Exchange agreement.--After the 
                                date on which an exchange agreement is 
                                entered into by the Alaska Mental 
                                Health Trust and the Secretary in 
                                accordance with section 254.14 of title 
                                36, Code of Federal Regulations (or a 
                                successor regulation), no reappraisal 
                                or updates to the final appraised 
                                values of the Federal land and non-
                                Federal land approved by the Secretary 
                                shall be required.
                    (C) Public review.--Before carrying out the land 
                exchange under paragraph (1), the Secretary shall make 
                the appraisals of the Federal land and non-Federal land 
                available for public review.
            (5) Equal value land exchange.--
                    (A) In general.--The value of the Federal land and 
                non-Federal land to be exchanged under paragraph (1) 
                shall--
                            (i) be equal; or
                            (ii) be equalized in accordance with this 
                        paragraph.
                    (B) Surplus of federal land value.--
                            (i) In general.--If the final appraised 
                        value of the Federal land exceeds the final 
                        appraised value of the non-Federal land, the 
                        Alaska Mental Health Trust shall--
                                    (I) convey additional non-Federal 
                                land in the State to the Secretary, 
                                consistent with the requirements of 
                                this section;
                                    (II) make a cash payment to the 
                                United States; or
                                    (III) use a combination of the 
                                methods described in subclauses (I) and 
                                (II), as agreed to by the Alaska Mental 
                                Health Trust and the Secretary.
                            (ii) Amount of payment.--Notwithstanding 
                        section 206(b) of the Federal Land Policy and 
                        Management Act of 1976 (43 U.S.C. 1716(b)), the 
                        Secretary may accept a payment under clause (i) 
                        in excess of 25 percent of the total value of 
                        the Federal land or Federal interests conveyed.
                    (C) Surplus of non-federal land.--If the final 
                appraised value of the non-Federal land exceeds the 
                value of the Federal land, parcels of the non-Federal 
                land may be excluded from the exchange in a quantity 
                sufficient to result in an equal value exchange.
            (6) Costs.--As a condition of the exchange of Federal land 
        and non-Federal land authorized under paragraph (1), the Alaska 
        Mental Health Trust shall agree to pay, without compensation, 
        all costs that are associated with the exchange.
            (7) Intent of congress.--It is the intent of Congress that 
        the land exchange authorized and directed under paragraph (1) 
        shall be completed not later than 1 year after the date of 
        enactment of this Act.
    (d) Management of Non-Federal Land.--
            (1)  In general.--On acquisition of the non-Federal land by 
        the Secretary under subsection (c), the non-Federal land 
        shall--
                    (A) become part of the Tongass National Forest; and
                    (B) be administered in accordance with the laws 
                applicable to the National Forest System.
            (2) Boundary revision.--On acquisition of the non-Federal 
        land by the Secretary under subsection (c), the boundaries of 
        the Tongass National Forest shall be modified to reflect the 
        inclusion of the non-Federal land.
            (3) Land and water conservation fund.--For purposes of 
        section 200306(a)(2)(B)(i) of title 54, United States Code, the 
        boundaries of the Tongass National Forest, as modified under 
        paragraph (2), shall be considered to be the boundaries of the 
        Tongass National Forest as in existence on January 1, 1965.
    (e) Withdrawal.--Subject to valid existing rights, the non-Federal 
land acquired by the Secretary under subsection (c) is withdrawn from 
all forms of--
            (1) entry, appropriation, or disposal under the public 
        laws;
            (2) location, entry, and patent under the mining laws; and
            (3) disposition under the mineral leasing, mineral 
        materials, and geothermal leasing laws.
    (f) Miscellaneous Provisions.--
            (1) Revocation of orders; withdrawal.--
                    (A) Revocation of orders.--Any public land order 
                that withdraws the Federal land from appropriation or 
                disposal under a public land law shall be revoked to 
                the extent necessary to permit conveyance of the land.
                    (B) Withdrawal.--
                            (i) In general.--If the Federal land or any 
                        Federal interest in the non-Federal land to be 
                        exchanged under this section is not withdrawn 
                        or segregated from entry and appropriation 
                        under a public land law (including logging and 
                        mineral leasing laws and the Geothermal Steam 
                        Act of 1970 (30 U.S.C. 1001 et seq.)) as of the 
                        date of enactment of this Act, the Federal land 
                        or Federal interest in the non-Federal land 
                        shall be withdrawn, without further action by 
                        the Secretary, from entry and appropriation on 
                        the date of enactment of this Act.
                            (ii) Termination.--The withdrawal under 
                        clause (i) shall be terminated--
                                    (I) on the date of the completion 
                                of the exchange of Federal land and 
                                non-Federal land under subsection (c); 
                                or
                                    (II) if the Alaska Mental Health 
                                Trust notifies the Secretary in writing 
                                that the Alaska Mental Health Trust 
                                elects to withdraw from the land 
                                exchange under section 206(d) of the 
                                Federal Land Policy and Management Act 
                                of 1976 (43 U.S.C. 1716(d)), on the 
                                date on which the Secretary receives 
                                the notice of the election.
            (2) Maps, estimates, and descriptions.--
                    (A) Minor errors.--The Secretary and the Alaska 
                Mental Health Trust, by mutual agreement, may correct 
                any minor errors in any map, acreage estimate, or 
                description of any land conveyed or exchanged under 
                this section.
                    (B) Conflict.--If there is a conflict between a 
                map, acreage estimate, or description of land in this 
                section, the map shall control unless the Secretary and 
                the Alaska Mental Health Trust mutually agree 
                otherwise.
                    (C) Availability.--On the date of enactment of this 
                Act, the Secretary shall file and make available for 
                public inspection in the office of the Supervisor of 
                the Tongass National Forest each map referred to in 
                this section.

SEC. 503. TONGASS STATE FOREST FACILITATION.

    (a) Definitions.--In this section:
            (1) Federal land.--The term ``Federal land'' means the land 
        identified by the State for conveyance under subsection (b)(2).
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (3) State.--The term ``State'' means the State of Alaska.
    (b) Tongass National Forest Land Conveyance.--
            (1) Authorization.--Not later than 90 days after the date 
        on which the State submits to the Secretary a request for the 
        conveyance of not more than 2,000,000 acres of the eligible 
        land described in paragraph (2), the Secretary shall, subject 
        to valid existing rights, convey by quitclaim deed all right 
        title and interest of the United States in and to the Federal 
        land for use by the State as a State forest.
            (2) Description of eligible land.--The eligible land 
        referred to in paragraph (1) is Federal land in the Tongass 
        National Forest in the State, other than--
                    (A) land located within the boundaries of--
                            (i) a component of the National Wilderness 
                        Preservation System;
                            (ii) a National Monument; or
                            (iii) a unit of the National Park System;
                    (B) a research natural area, experimental forest, 
                or similar area designated for special management; or
                    (C) an administrative site (as defined in section 
                502 of the Forest Service Facility Realignment and 
                Enhancement Act of 2005 (16 U.S.C. 580d note; title V 
                of Public Law 109-54).
            (3) Deadline for request.--To be valid, a request for a 
        conveyance under paragraph (1) shall be submitted by the date 
        that is 3 years after the date of enactment of this Act.
            (4) Costs of conveyance.--As consideration for the 
        conveyance of the Federal land to the State under paragraph 
        (1)--
                    (A) the State shall pay to the Secretary an amount 
                that is at least equal to fair market value of the 
                Federal land being conveyed to the State, as determined 
                under paragraph (5); or
                    (B) notwithstanding any other provision of law, the 
                State may elect to convert a selection filed under 
                section 6 of the Act of July 7, 1958 (commonly known as 
                the ``Alaska Statehood Act'') (Public Law 85-508, 72 
                Stat. 340), to use as a credit towards the conveyance 
                of Federal land to the State.
            (5) Appraisal to determine fair market value.--The 
        Secretary shall determine the fair market value of the Federal 
        land to be conveyed to the State based on an appraisal that is 
        conducted in accordance with--
                    (A) the Uniform Appraisal Standards for Federal 
                Land Acquisition; and
                    (B) the Uniform Standards of Professional Appraisal 
                Practice.
            (6) Environmental review.--Any conveyance of Federal land 
        to the State under this subsection shall be considered an 
        action categorically excluded from review under--
                    (A) the National Environmental Policy Act of 1969 
                (42 U.S.C. 4321 et seq.); or
                    (B) section 1508.4 of title 40, Code of Federal 
                Regulations (or a successor regulation).
            (7) Notice, comment, and appeals.--Any land conveyance 
        under this subsection shall not be subject to the notice, 
        comment, and appeal procedures of part 215 of title 36, Code of 
        Federal Regulations (or successor regulations).
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